The wide-reaching luxury travel industry was worth almost $891 billion in 2023; but is set to see its value rocket to over $2.1 trillion by 2035 – just 10 years from now.
That is according to new research by global insights agency, Allied Market Research, which highlights culinary-themed pampering holidays, safari and adventure holidays and the use of private islands for relaxing getaways as some of the themed trips set to fuel luxury tourism’s enormous growth.
Rising disposable income levels are driving demand for unique and personalised holidays.
In terms of themed holidays, safari and adventure is popular at present; while private island getaways are soaring in popularity.
Geographically, Asia-Pacific and North America – particularly Canada and the Rockies region – are strong right now.
The baby boomer generation – those aged in their 60s and 70s – still lead the market, in terms of paying customer, and they want active/body healthy holiday options like hiking and cycling.
But, the millennial generation – those aged 29-44 – are a growing power in luxury travel and will begin to dominate over the next 10 years; bringing about a change in holiday type to more of a focus on shorter trips instead of culturally-rich escapes.
That said, the absolute luxury segment of the market – think private jets, personal butlers and the like – is set to maintain its dominance up to the mid 2030s.
