The Future of Luxury Travel Report

Shaping the Future of Luxury Travel | Future Traveller Tribes 2030 11

Growth of luxury travel trips by distance

Source: Tourism Economics

Sum of Luxury Border Trips Sum of Luxury Short-haul Sum of Luxury Medium-haul Sum of Luxury Long-haul

Number of trips

60,000

50,000

40,000

30,000

20,000

10,000

0

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Between 2011 and 2025, Asia Pacific’s luxury travel market will see faster overall growth than Europe’s , but will decelerate from 2015-2025, while Europe’s will continue to grow steadily. This pattern is indicative of the regions’ economic performances. For example, China’s GDP growth slowed from 10.3% in 2011 to 6.9% last year, a trend which could have a significant effect on the growth pattern for Asia considering its dominance of the market.

As middle-class markets develop and mature across the globe, the luxury hospitality market is expanding to meet their needs. A recent report from Transparency Market Research found that the global luxury hotels market will continue to expand at CAGR of 4% from 2015-2021. The increased wealth and refined travel aspirations of these new middle classes will compel them to invest in long-haul travel to new destinations, thus encouraging their peers to follow suit and explore other corners of the globe. North America and Western Europe currently account for 64% of the world’s outbound luxury trips – despite only making up 18% of the global population. This clear majority of the market share will continue over the next 10 years; the maturity of these luxury markets and the relative affluence of their populations explain this dominance.

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