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| Global Luxury Travel Market Size |
The luxury travel market involves trips and vacations that provide unique and
enhanced services, lodging, activities and amenities to travelers. Some
features include high-end accommodations like 5-star hotels, resorts and
cruises and bespoke travel services like private tours, guides, security and
transportation. Growing disposable incomes and busy work schedules have
increased demand for comfortable yet indulgent travel options that offer
premium experiences. As people seek to spend leisure time more meaningfully,
options for customized and experiential luxury vacations are gaining popularity.
The global luxury travel market is estimated to be valued at US$ 260.23 Mn in 2023 and is expected
to exhibit a CAGR of 7.6% over the
forecast period 2023 to 2030, as highlighted in a new report published by
Coherent Market Insights.
Market Opportunity: Rising Focus on Higher Quality Travel Experiences
With rising prosperity, more travelers today are wanting to spend discretionary
income on luxury services that offer a sense of privilege, quality time and new
experiences during trips. There is a growing focus on curated itineraries,
local cultural immersions, gourmet cuisine and bespoke accommodations when
people travel. This presents an opportunity for luxury travel providers to
develop differentiated offerings highlighting the aspect of ‘experiences’ over
material comforts alone. Customized packages incorporating unique activities,
learning opportunities through interactions with local communities and special
interest tours can attract customers wanting memorable life experiences through
travel. As people continue pursuing higher quality engagements during
vacations, the luxury travel market is well-positioned to capture rising demand
by crafting diverse experiential aspects within enhanced travel services.
Porter's Analysis
Threat of new entrants: The luxury travel market presents moderate threat of
new entrants due to the high levels of capital required to enter this market.
However, online travel platforms have lowered the entry barriers to some
extent.
Bargaining power of buyers: Buyers in the luxury travel market have moderate
bargaining power due to availability of substitutes and differentiated products
offered by different luxury travel operators. However, buyers hold less power
compared to suppliers.
Bargaining power of suppliers: Tour operators, luxury hotels and airlines that
are suppliers to the luxury travel industry have high bargaining power due to
large brand value, rigorous quality standards and overreliance of existing
travel operators on their services and products.
Threat of new substitutes: Threat of substitutes is low in the luxury travel
market due to differentiated and experiential nature of luxury travel offerings
and services.
Competitive rivalry: The luxury travel market experiences high competitive
rivalry due to the presence of many international and regional players offering
comparable products and services. Players compete based on brand value, unique
experiences, and global reach.
SWOT Analysis
Strengths: Strong brand recognition of leading luxury travel operators
globally; Large pool of ultra-wealthy customers; Ever increasing demand for
experiential and exclusive vacation experiences.
Weaknesses: High operating costs; Reliance on economic conditions and
discretionary spending; Vulnerable to geo-political risks in destinations.
Opportunities: Emergence of new luxury travel niches like wellness, sports,
culinary trips; Rising incomes in developing nations; Proliferation of online
travel platforms.
Threats: Price-sensitive travelers opting for affordable luxury options;
Natural calamities and pandemics disrupting tourism; Populist policy changes
affecting visa norms.
Key Takeaways
Global
Luxury Travel Market Size is expected to witness high growth over the
forecast period aided by rising number of HNIs globally seeking unique
experiences. The global luxury travel market is estimated to be valued at US$ 260.23 Mn in 2023 and is expected
to exhibit a CAGR of 7.6% over the
forecast period 2023 to 2030.
The Asia
Pacific region is projected to be the fastest growing as well as most lucrative
market for luxury travel products and services attributable to economic
development and huge population of young urban travelers in countries like
China and India with increasing spending power. The large affluent population and
rising spending on exotic leisure travel experiences are driving the Asia
Pacific luxury travel market. North America and Europe continue to dominate the
luxury travel industry globally.
Key players operating in the luxury travel market are Zoetis Inc., Elanco
Animal Health Incorporated, Boehringer Ingelheim International GmbH, Virbac,
Vetoquinol S.A., Dechra Pharmaceuticals PLC, Bayer AG, Ceva Sante Animale,
Kindred Biosciences, Inc., IDEXX Laboratories, Inc. These firms are focusing on
expanding into emerging luxury destinations through strategic partnerships and
acquisitions.
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