Global luxury travel market to reach USD 1.57 trillion by 2028

Unexplored destinations and novel experiences drive growth : Research & Markets
/ New Delhi
Global luxury travel market to reach USD 1.57 trillion by 2028

One of the most prominent customers in this market is thought to be High Net Worth Individuals

Global luxury travel market size is expected to reach USD 1.57 trillion by 2028, rising at a market growth of 6.3 pc CAGR, says a new report.
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Global markets research firm Research and Markets says that the global luxury travel market is expected to grow steadily at 6.3 CAGR for the next five years, reaching a net value of USD 1.57 trillion by 2028.

The report says that exclusive and one-of-a-kind experiences, and highly individualised services, are linked with luxury travel. The sector is being driven by rising expenditure by affluent tourists who want to see undiscovered places and have novel experiences. The industry has been developing as a result of the rising trend of short vacations as well as the worldwide expanding tourist industry.

The report says that given that spending on art, restaurants, culture, guides, and athletic events by luxury travellers is essential to the local economies of the places they visit, luxury travel plays a significant role in the distribution of wealth around the world. Travellers are searching for flexible schedules that combine entertainment and relaxation in order to build their own special experiences.

Numerous tourists, especially wealthy ones, are drawn to the growing popularity of cruises, yachts, and small ships. One of the most prominent customers in this market is thought to be High Net Worth Individuals (HNWIs). As a result, businesses in the sector have been focusing more on luxury water-based travel, like cruises, says the research and markets report.

Additionally, the prevalence of internet research has grown dramatically over time. During the forecast period, high-tech or smart rooms are expected to fuel demand for luxury lodging and travel, offering guests total control over how they use their accommodations and choose to travel. The industry is expanding as a result of rising internet usage and the availability of social media. Also, the number of travel tales shared on social media sites like Instagram, Facebook, and blogging platforms has multiplied.

The report goes on say that worldwide, the Covid-19 pandemic has had an impact on every industry. Around the world, the tourism sector has been severely impacted, which has a negative effect on its related industries, including travel agencies, hospitality, tour operators, and all types of transportation services. The remaining people stayed at home out of dread of the virus itself, while almost the whole world’s population adjusted to their way of life under various travel limitations. As a result, the tourism industry virtually stopped.

The report says that regarding visa policies, each nation has its own distinct set of guidelines for visitors of various nationalities. Governments are, however, more frequently forcing tourists to get travel insurance in order to get a visa. To visit countries like France, the United States, Norway, Belgium, Luxembourg, Finland, and Poland, among others, one must have travel health insurance.

This clause exists to make sure that visitors are adequately covered in the case of a medical emergency due to the high costs of medical care and hospitalisation in the host nations. The report adds that the travel and tourism business has consistently grown during the past 10 years.

‘‘Every element of our life, including the way we consume, has been altered by social media. Businesses have been profoundly impacted by these advances, mostly because they have made new marketing methods possible. Undoubtedly a component of all of these is tourism, one of the most dynamic economic sectors in the world. People are now encouraged to talk about their travels. Social networking has changed how people make decisions as a result,’’ says the report.

On the negative side, the report says that the travel sector had been almost paralysed by the pandemic. The Covid-19 pandemic has had an effect on the tourism sector because of the resulting travel restrictions and decline in demand from tourists. The spread of the coronavirus has had a significant impact on the tourist sector because several nations have imposed travel restrictions in an effort to stop it.

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