Luxury travel means exploring and experiencing destinations in unprecedented and inspirational ways as per the traveler’s term. Luxury travel provides experiences that are tailored to the traveler’s personalized preferences, including their desires, wishes, and the services they want.
COVID-19 Impact Analysis
The outbreak of COVID-19 across the globe has adversely affected the economy along with devastating impact on several industries including the global luxury travel market. The unprecedented lockdowns, social distancing measures, and restrictions on travel across various countries has impacted the market in a negative way. The travel restrictions led to cancellations of various type of travels, domestic, and international tours which resulted in huge revenue losses. A number of tourism companies shut down their operations without any idea of resuming the work. The financial worries is leading to less or limited spending on non-essential goods and is projected to restrain the growth of global luxury travel market during the pandemic.
On the other hand, several companies are taking initiatives to recover their losses and help the society to recover from the unprecedented crisis. For instance, the changing mindset of customers has led to development of contactless check-ins and check-outs, which makes the travelers feel safe while travelling. Moreover, the government of various countries are taking measures to support the travel and tourism sector For instance, the Government of India has launched various initiatives such as Service Exports from India Scheme (SEIS), National Skills Development Program, and others to support the tourism industry.
Key Developments in the Industry
The companies operating in the global industry are adopting various growth strategies and business tactics such as business expansion, partnership, collaborations, and product/service launches to obtain a leading position in the global industry, which is predicted to drive the growth of the global luxury travel market in upcoming years.
For instance, in February 2018, Airbnb, an American company operating an online marketplace for lodging and tourism activities, announced a new premium service called ‘Airbnb Plus’ to tap into the luxury travel market. The new high-end tier program is aimed at more discerning travelers including listings verified by the company for ‘quality and comfort.’ The Airbnb Plus has amenities similar to that of a hotel in 13 cities including Los Angeles, London, Shanghai, Rome, and Melbourne among others.
In October 2020, VistaJet, a global business aviation company, announced the launch of ‘Private World’ luxury travel experiences with a personal touch by announcing collaborations with top travel advisors. The company used its partnership with the Malta Tourist Board to access private yacht amid the various COVID-19 travel restrictions. The VistaJet Private World provides a portfolio of services exclusively to members and is continually expanding to more locations worldwide.
In June 2021, Luxury Travel Hackers, Inc., the leading travel tech company, announced the launch of an exciting and innovative new approach to booking travel in the post-pandemic era. The company designed this new age travel solution by keeping the mobile millennial in mind. LTH has collected the recommended vacations via story-driven and robust social media content. LTH is the only company to that has made vacations bookable via social media.
Forecast Analysis of Global Luxury Travel Market
The global luxury travel market is projected to witness a striking growth during the forecast period, owing to the technological advancements and such as high speed internet and AI, and the rise in number of emerging destinations around the world. Conversely, the changing socio-economic conditions owing to various factors such as natural disasters, terrorist attacks, and others may hamper the market growth in the projected timeframe.
The rapid increase in demand for exotic and unique travel experience that helps people to their physical and mental health by reducing stress is the significant factor estimated to propel the growth of the global luxury travel market in the coming future. According to a latest report published by Research Dive, the global luxury travel market is expected to garner $1,369,103.8 million during the forecast period (2021-2028). Regionally, the Europe region is estimated to dominate in the global industry, mainly because Europe is the most popular destination on the wish list of many people across the globe. The key players functioning in the global market include Abercrombie & Kent USA, LLC, TUI AG, Cox & Kings Ltd., Travcoa Corporation, Butterfield & Robinson Inc., Meredith Corporation, LLC, Scott Dunn Ltd., Thomas Cook Ltd., Kensington Tours Ltd., and Micato Safaris.