The global luxury tourism market is slated to grow considerably through 2030 due to rapidly growing interest among millennials and young travelers to explore the world. Additionally, increasing consumer inclination toward traveling comfortably and cost-efficiently, coupled with mounting prevalence of luxury ecotourism, is likely to further support industry expansion over the forecast timeline.
The boom in the demand for low-cost cruise holidays, which include transportation, food, housing, and entertainment, has significantly increased the demand for luxury travel. With declining COVID-19 cases, luxury travelers have resumed their travels both domestically and internationally, which is helping the luxury tourism market recover from the negative impact the pandemic had on tourism.
Seeing the upsurge in luxury expedition demand, globally acclaimed companies are enhancing their services to meet customer expectations. For instance, in April 2022, Inmarsat, the leading global mobile satellite communications firm, received new orders for its industry-leading Fleet Xpress service, which encompasses three specialized Gal?pagos Islands vessels. The expedition vessels were to benefit from strong coverage and high data speeds while sailing the remote archipelago.
The luxury tourism market has been bifurcated in terms of type, tour type, generation, and region.
Based on type, the industry has been divided into celebration journeys, customized & private vacations, adventure & sport travel, cruises yachting & small ship, safari, and others. The safari segment registered a market share of nearly 15% in 2021 and is speculated to grow at a substantial rate through the forecast period owing to the increasing per capita household income and high preference for safari tours. Meanwhile, the others segment, which includes shopping tourism, walking tourism, and culinary tourism, is expected to depict a CAGR of approximately 15% over the review timeline.
With respect to generation, the luxury tourism market has been segmented into millennial, baby boomers, generation X, and others. The others segment is projected to observe notable expansion, progressing at roughly 15% CAGR through 2030. This segment comprises individuals who are above 60 years of age. These individuals have sufficient time and money at their disposal as well as the desire to spend their leisure time traveling with their loved ones, which is foreseen to facilitate segmental expansion in the forthcoming years.
On the regional spectrum, the Middle East & Africa luxury tourism market is poised to showcase around 15% CAGR over the assessment timeframe driven by the growing demand for unique and exotic safari experiences. Safari operators are concentrating on providing these exotic travel experiences to visitors in order to promote revenue growth in response to the rise in demand for distinctive travel experiences. Furthermore, government entities are focusing on boosting the growth of the overall tourism industry, which is slated to foster MEA market outlook.