Global luxury travel market report: Key statistics
Market size and growth
The luxury private travel industry has seen remarkable growth in recent years. Key luxury travel market size statistics to illustrate this include:
- According to a survey by Allied Market Research, the global luxury travel market was valued at $638.2 billion in 2021, and is projected to reach $1650.5 billion by 2031, growing at a CAGR of 8.9% from 2022 to 2031.
- Additionally, according to Deloitte’s Future of Luxury Travel Report 2023, the Global Wellness Institute predicts 17% annual growth for the total market value by 2025.
Luxury Travel Expenditure
- In a 2021 American Express survey, 76% of respondents said they wanted to spend more on travel to improve their well-being, and 55% said they’d pay extra for wellness activities on future vacations.
- In Flywire’s Luxury Travel Report 2023, 83% of luxury travellers surveyed plan to spend more on travel in 2023 than they did in 2022.
Luxury travel market growth: Why the rise in demand?
Changing Travel Preferences
The conventional notion of travel as a mere means of reaching a destination is rapidly evolving. Today’s travellers are increasingly looking for experiences that go beyond ordinary. Luxury travel is no longer just about extravagant accommodations and first-class flights. Luxury travellers now seek exclusivity, personalization, and the opportunity to create truly unforgettable memories.
The global rise in affluence has created a larger pool of potential customers for luxury private travel services. The number of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) continues to grow, and these individuals are willing to invest in premium travel experiences that reflect their social status.
Access To Ultimate Privacy
Privacy is no longer a preference for luxury travellers; it’s a necessity. With social media and the constant presence of technology in our lives, high-end travellers are seeking secluded, private experiences to disconnect from the world and truly relax.
This has led to the rise of exclusive, remote destinations with private properties that offer complete privacy and tranquillity, away from the crowds. With customized and private tours, private villas and even private islands available at the click of a button, a desire for privacy is shaping current trends in luxury private travel.
Emerging trends in the luxury private travel industry
Sustainable luxury travel trends
Sustainability is a growing concern for many luxury travellers, with the Economic Times stating that environment-conscious travellers are increasingly looking for a destination and stay that allow them to decrease their ecological footprint. Additionally, as per a recent Deloitte survey, 80% of luxury travellers said they want to travel more responsibly, with 75% willing to pay more to do so, especially if it’s clear how the money will be used. This has given rise to a boom in sustainable luxury travel, where experiences are designed with a focus on environmental responsibility, local community engagement, and conservation efforts.
Wellness tourism has become a significant trend within the luxury private travel industry. Travellers are seeking experiences that rejuvenate both their body and mind. Spas, retreats, and wellness-oriented activities are increasingly integrated into luxury travel packages.
Data shows that the inclination towards health and wellness trips among consumers is expected to grow by 50% in the next 12 months — 2022-2023 — with 6% of global respondents saying they stayed at a health and wellness retreat in 2022 and 9% saying they intend to do so over the course of 2023.
Remote And Exotic Luxury Travel Destinations
- Private Villas
- Private Chalets
- Private Safaris
- Private Islands
- Private Castles
- Private Luxury Lodges
Food is a central element of luxury travel, with culinary tourism gaining prominence. Luxury consumers want to savour local cuisine and experience gourmet dining in exceptional settings. PR News Wire tells us: “The global culinary tourism market size reached US$ 805.9 Billion in 2022. Looking forward, the publisher expects the market to reach US$ 2,114.2 Billion by 2028, exhibiting a CAGR of 17.44% during 2022-2028.” Luxury private travel providers are keeping up with this trend by collaborating with renowned chefs and curating culinary-focused itineraries, often serving up gourmet dishes from the comfort of the consumer’s private holiday residence.
Cultural immersion has become a cornerstone of luxury travel. Travellers want to engage with local culture, traditions, and cuisine in a more meaningful way. As a result, luxury private travel experiences are designed to offer authentic cultural encounters. For example, Thanda Private Island, Tanzania, offers a base for tailored excursions and East African adventures, alongside exotic dining on demand, allowing guests to truly immerse themselves in the local culture.
Flywire’s Luxury Travel Report 2023 also tells us that 84% of luxury travellers surveyed said their next few vacations will be longer than the ones they took over the past 18 months—which naturally correlates to an increase in expenditure. In fact, luxury travelers tend to opt for longer trips, often extending their vacations by several days to fully immerse themselves in their chosen destination. This extended travel duration results in higher overall spending, and is becoming a trend as travellers seek out deeper connections with their destination.
In conclusion, the luxury private travel industry is a thriving and dynamic sector that continues to grow and evolve. The demand for personalised, exclusive travel experiences is on the rise, driven by changing preferences, increasing affluence, and a desire for privacy. At TJB Private Travel, we provide bespoke luxury private travel experiences that cater to the unique needs of our clients. Our travel advisors are highly experienced in crafting journeys that meet our client’s individual demands, taking into consideration their preferences, lifestyle, budget and desired destinations. From Caribbean Islands and Indian Ocean bliss, to private destinations and 5-star escapes, we offer a variety of options for those seeking an unforgettable journey. Enquire now to find out more.