There’s no doubt that the global luxury travel market has been upended by the pandemic. However most industry observers are still optimistic about its growth potential between now and 2024. The forces which propelled the industry before COVID should return, and pent up demand from a year or more of travel bans, should spur additional growth.
Data firm Technavio is predicting that the luxury travel market is poised to grow by USD 213.00 billion during 2020-2024, progressing at a CAGR of almost 4% during the forecast period. This would resent a marked change from what we have seen in 2020.
Impact of COVID-19
The COVID-19 pandemic continues to transform the growth of various industries, however, the immediate impact of the outbreak is varied. While a few industries will register a drop in demand, numerous others will continue to remain unscathed and show promising growth opportunities. COVID-19 will have a low impact on the luxury travel market. The market growth in 2020 is likely to decrease compared to the market growth in 2019, but according to Technavio’s research, not will bounce back with a vengeance in 2021 and beyond.
The luxury travel industry will help set the tone for the wider travel industry. If luxury travel grows, so too should less expensive leisure travel and the all important business travel sector.
The global luxury travel market is expected to grow by a CAGR of 3.96% through 2024.
Based on the analysis of various regions and their contribution to the global market, analysts estimate that US, Germany, France, China and UK will have the highest revenue share globally. These countries are expected to remain the largest markets for luxury travel.
The luxury travel market is currently fragmented with several key players. So market growth is expected to change if the market structure changes due to industry consolidation or if some vendors exit the market. Technavio analysts estimate the market to grow at a CAGR of 3.96% till 2024. During the forecast period, the market will show an accelerating growth of $213.00 billion
- Based on segmentation by type, which is the leading segment in the market?
The adventure segment led the market in 2019.
- What are the major trends in the market?
The rising popularity of sports tourism is the major trend in the market.
- At what rate is the market projected to grow?
The market is projected to grow at a CAGR of almost 4% during the forecast period.
- Who are the top players in the market?
Abercrombie & Kent USA LLC, Absolute Travel Inc., Butterfield & Robinson Inc., Classic Journeys, Cox & Kings Ltd., Indigenous Tourism BC, Odyssey World, Responsible Travel, Scott Dunn, and Travelopia are the top players in the market.
- What are the key market drivers and challenges?
The market is driven by increasing disposable incomes. However, the threat of terrorism might challenge growth.
- How big is the North America market?
North America accounted for a 30% share of the global market in 2019.