Published on : Thursday, May 19, 2016
North America and Western Europe lead the world’s luxury travel market – accounting for 64% of global outbound luxury trips despite only making up 18% of the world’s population. However, the Compound Annual Growth Rate (CAGR) in luxury outbound trips for Asia Pacific from 2011 – 2025, projected at 6.3%, will be higher than Europe (5.3%). Leading the region are India and China, with a CAGR of 12.8% and 12.2% respectively. India’s projected growth in luxury travel is the highest of the 25 countries explored in this report and presents great potential for luxury travel investment over the coming decade.
The report further finds that growth in luxury travel will outpace overall travel, spurred on by consumers’ desire for life experiences. Over the next 10 years, the growth rate in outbound luxury trips is projected at 6.2%, almost a third greater than overall travel (4.8%).
“The Asian luxury travel market is one to watch. It presents a lucrative opportunity for travel players but will not be an easy one to crack. Asian luxury travellers have a unique set of motivations and needs – truly understanding what drives their travel behaviour will be critical for travel providers looking to tap into that segment,” said Hazem Hussein, Executive Vice President, Airline Commercial, Amadeus Asia Pacific.
The report, Shaping the Future of Luxury Travel, reveals the fresh challenges and opportunities that the luxury travel market will face over the next decade.
Other key findings from the report include:
In 2015, Amadeus released a report called Future Traveller Tribes 2030, which identified six traveller tribes based on consumer behaviour, recognising that purchasing patterns change depending on the circumstances of each trip.
Using similar methodology, Shaping the Future of Luxury Travel identifies six luxury traveller tribes to help travel providers better target their luxury customer market: Always Luxury; Special Occasion; Bluxury; Cash-rich, Time-poor; Strictly Opulent; and Independent Affluent.
“Luxury means different things to different people and this is especially true today. As emergent middle classes seek the material aspect of luxury travel, more mature markets are craving a new, evolved kind of luxury. This is why offering luxury customers a relevant personal and exclusive experience will become even more crucial than it is today – it will be a differentiating factor between old and new luxury. Exploring the latest technologies and innovations for making the industry work better as a whole is key to achieving a new level of luxury that has never existed before” says Rob Sinclair-Barnes, Strategic Marketing Director at Amadeus IT Group.
The report was commissioned by and developed with data from Tourism Economics as well as expert interviews with global luxury travel experts across specialist travel concierge agencies, airlines, hoteliers and intermediary suppliers through Connections, a global networking event organiser for luxury travel providers.