Global luxury travel market, riding on experience wave, to reach $2.32 trillion by 2030

December 1, 2023

The Four Seasons Private Jet experience targets HNW and UHNW travelers with ultra-luxury travel journeys. Image: Four Seasons Hotels and Resorts

By Luxury Marketer Intelligence

The global luxury travel market size is expected to reach $2.32 trillion by 2030, registering a compound annual growth rate (CAGR) of 7.7 percent from 2023 to 2030

The growing desire to escape the stress, hustle-bustle and routine of everyday life has made travel more attractive, per a new report from Grand View Research. Indeed, luxury travel is one of the top categories measured by Bain & Company in its new report that will grow in 2024 at a rapid clip, ending this year at $1.63 trillion in market size.

Moreover, the increasing life expectancy of people and improved health conditions even in old age are encouraging more individuals to follow an active lifestyle.

Well traveled
The new trend of micro trips is expected to boost the market growth during the forecasted period.

The demand for luxury travel focused on wellness continues to increase, with travelers actively seeking experiences, itineraries and products tailored to health, fitness, nutrition, appearance, sleep and mindfulness.

According to a 2021 American Express survey, 76 percent of respondents expressed a desire to allocate more of their travel budget toward improving their overall well-being, while 55 percent indicated a willingness to invest extra in wellness activities for future vacations.

Although many spas and health retreats faced closures during the pandemic, the Global Wellness Institute anticipates a robust recovery, projecting an annual growth rate of 17 percent and an estimated market value of $150 billion by 2025.

In terms of luxury cultural tourism, festivals have become a major focus, and notions of authenticity have become spots of attraction in the festivals.

Tourists seek an authentic experience of the festivals and associated cultural rituals and traditional practices.

Social connectivity is another emerging trend among luxury travelers to connect and experience different societies and cultures.

Some of the key players in the luxury travel market globally include TUI Group, Butterfield & Robinson, Cox & Kings, Scott Dunn, Abercrombie & Kent USA, Lindblad Expeditions, Geographic Expeditions, Micato Safaris, Exodus Travels and Travel Edge (Canada).

Highlights from the report:

The culinary travel and shopping segment is anticipated to witness the fastest CAGR over the forecast period

Culinary travel, often referred to as food tourism packages, encompass travel offerings that revolve around food and beverages. These packages are tailored to include destinations, sites, attractions or events with a focus on the culinary aspect

The millennial segment is expected to witness a significant CAGR over the forecast period. Millennials prioritize experiences over material possessions, valuing the memories and personal growth that luxury travel can provide

Millennials are, unsurprisingly, shifting their focus from traditional pampering to a wider range of compelling traveling experiences

Europe dominated the global market in 2022 due to rising travel connectivity, coupled with rapid penetration of high-speed Internet, which has made even the most remote places in European countries accessible to travelers

This is driving the need to explore new and exotic locations across the region, thereby strengthening the market growth

Siranna is the new resort debuting on the Gulf of Aqaba in Northwest Saudi Arabia that targets travelers seeking tranquility and eco-friendly tourism escapes from the hurly-burly of daily life. Image: PRNewsfoto/NEOM Corporate

Trends driving development: Examples of sustainable escapism
The trend to sustainable and wellness tourism is giving rise to many new travel destinations. One such is NEOM, a region under development in Northwest Saudi Arabia on the Red Sea.

NEOM recently unveiled Siranna, an exclusive tourism escape and the latest destination to be announced in the region.

Situated on the Gulf of Aqaba coastline, this ultra-luxurious destination will be home to a 65-key hotel, as well as 35 exclusive residences. Focusing on thinking and relaxation, the destination will offer uninterrupted views of the Red Sea.

Emerging from the rugged coastal terrain, the hexagonal pillars are distinctive, yet complementary to the surrounding mountains and flora. Arriving via waterborne transportation to the secluded bay, guests will journey through the natural rock formations before reaching the entrance of the property.

“The guiding principle underpinning the development is to ensure minimal intervention in nature, where thoughtful and deliberate techniques will be used to preserve the surrounding landscape,” NEOM said in a statement. “The architecture will pay homage to the heritage of the local area and seamlessly blend into the adjoining mountain and wadi.”

Siranna will complement its coastal location and be developed sustainably. News of the development follows the recent announcements of Leyja and Epicon, which are also sustainable tourism destinations located in the Gulf of Aqaba.

While that experience promises to be swish, a fast-growing category is the ultra-luxury end of the market as exemplified by hospitality giant Four Seasons for its Private Jet itineraries.

Just announced, the 2025 lineup includes travel from the shores of the Maldives to the plains of the Serengeti for the three final journeys for that year.

The packages, ranging from 13 days to 24 days and priced at $205,000 per person, boast names such as International Intrigue, African Wonders and World of Adventures. They comprise new destinations and experiences, including an extended private cruise exploration of the Galápagos islands and a stay at the Four Seasons Hotel Istanbul at Sultanahmet.

Every Four Seasons Private Jet Experience itinerary is planned from start to finish, and includes all flights aboard the fully customized, 48-seat Airbus A321neo-LR plus luggage coordination and ground transfers.

Upon booking, a Private Jet Guest Services Manager is assigned to each traveler to guide him or her along every step of the way. Guests can turn to a Four Seasons concierge to customize their itineraries with alternative experiences that pique their interest.

While onboard, guests can savor a menu crafted by a Four Seasons chef, including destination-inspired meals that reflect the diverse flavors of each region.

The Four Seasons Private Jet Experience is operated by TCS World Travel and aircraft run by Titan Airways.

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Global luxury travel market, riding on experience wave, to reach $2.32 trillion by 2030

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