Global luxury tourism is on the rise
According to Statista’s latest data, over the next five years, global luxury tourism is expected to grow at a faster pace than tourism in general
As of this year, global tourism revenue amounted to $5.9 trillion, while high-end tourism currently has a global value of $831 billion. Over the next five years, tourism in general is expected to increase with a compound annual growth rate (CAGR) of 6.4 per cent, while luxury tourism is expected to grow at a faster pace, with a CAGR of 7.3 per cent.
Currently, the US has the biggest luxury travel market, with a value of nearly $263 billion. China follows closely behind, with a market value of $91 billion. Interestingly, Statista also highlighted that China’s and India’s luxury travel markets are forecast to grow the most rapidly in the five years, mostly driven by the growth of the domestic luxury market.
But what is it that has brought about this boom in luxury travel? Dr Friedrich Schwandt, Founder and Managing Director of Statista, explained: “A key trend that has been shaping luxury tourism in recent years is the increase in multigenerational travel. Families are seeking an opportunity to spend quality time together and strengthen bonds. As millennials and generation Z gain economic influence and represent an increasing proportion of luxury travellers, adventure, uniqueness, as well as sustainability, also become vital, as they contribute to a high-profile social media image.”
Read Statista’s full report here.