Travel for business has also demonstrated tremendous resiliency by maintaining a slow and steady growth despite the growing terrorist attacks and unstable economies. China has become the largest travel market in the world, surpassing the US. It is expected to be the single largest economy that will witness high growth in this market. Furthermore, India and Indonesia are expected to become prominent markets in terms of business travel spending during the forecast period.

Key Luxury Travel Market Report Highlights:

1. Market growth 2020-2025: USD 1.23 trillion
2. Growth momentum & CAGR: Decelerate at a CAGR of 26%
3. YoY growth (%): 45.30%
4. Performing market contribution: Europe at 30%
5. Key consumer countries: US, Germany, China, France, and the UK

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Regional Market Analysis
With 30% of the growth originating from Europe, this region will record a fast growth rate from 2020 to 2025.

The increasing disposable income and trending sports tourism are expected to boost the growth of the luxury travel market

Apart from it, the other key reasons for the increasing luxury travel market's growth in Europe are:

• The increasing number of baby boomers, the presence of numerous exotic destinations, increasing demand for personalized vacations, availability of easy transport facilities, the rapid increase in the number of food and beverage festivals, and the presence of major vendors will be crucial
• The luxury travel market share growth by the adventure segment will be significant for revenue generation

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Key Vendors and Vendor Strategies

Abercrombie & Kent USA LLC, Absolute Travel Inc., Butterfield & Robinson Inc., Classic Journeys, Cox & Kings Ltd., Indigenous Tourism BC, Odyssey World, Responsible Travel, Scott Dunn, and Travelopia are a few of the key vendors in the luxury travel market.

The vendors in the market are constantly focusing on broadening their product portfolio through expanding their product offerings. Additionally, vendors are focusing on expanding their presence in new regions.

For instance:

• Abercrombie & Kent USA LLC -In January 2019, the company launched new Wellness-Inspired Luxury Small Group Journeys in India, Southeast Asia, Kenya, and Peru

Download Technavio free sample report to get a brief understanding of various other vendors and the vendor's strategies.

Key Market Driver

Technavio analysts have extensively outlined the information on the key market driver for the luxury travel market -

• Increasing Disposable Income:
  • One of the key factors driving growth in the luxury travel market is the increasing disposable income. Factors such as the rise in dual household income, per capita income, and rapid growth in the employment rate have driven the increase in disposable incomes worldwide. The growth in disposable income is expected to increase the spending and purchasing power of consumers. The boom in the tourism industry has also encouraged consumers to spend on travel and leisure activities with exotic holiday experiences. Therefore, the increasing disposable income boosts the demand for luxurious travel to different destinations across the world, which, in turn, is fostering the growth of the global luxury travel market

To know about a few other market drivers, trends, and challenges -Download Technavio free sample report

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