Luxury Travel Market Trend and Analysis of Traveller Types, Key Destinations, Challenges and Opportunities, 2022 Update

Luxury Travel Market Trend and Analysis of Traveller Types, Key Destinations, Challenges and Opportunities, 2022 Update

Summary

Analysis of the luxury travel industry including insights in luxury travelers, market trends influenced by COVID-19, consumer trends, destinations, sector deals, challenges and opportunities.

Key Highlights

• It has been well documented that the pandemic has transformed many travelers into high-net-worth individuals and made the super-wealthy even wealthier. This trend will no doubt benefit the luxury tourism market as more travelers can now afford to indulge in luxury products and services during future trips. According to High Net Worth Wealth Analytics, among individual countries, the US leads by a huge margin with 115,000 ultra high-net-worth individuals, equivalent to more than two-fifths (41.8%) of the world’s total. China occupies second place with 33,000 ultra high-net-worth individuals.
• Key trends include a pandemic-induced boom in private aviation, greater demand for private buy-outs, reorientation to luxury domestic travel, remote working from luxury overseas locations and ‘ultra-itineraries’. Determined to make up for lost time, 2022 could see an increase in holiday budgets for luxury travelers, with an uptick in demand for ‘once in a lifetime’ adventures. According to a publisher poll, when respondents were asked if their holiday budgets had changed due to COVID-19, 16% if respondents said their budgets were ‘a lot higher than pre-COVID-19’. Outside of COVID-19, there are numerous consumer trends that are key to luxury travel and industry players would be well placed to understand. This includes the importance of the human touch, personalization and sustainability.
• In 2021, domestic tourism expenditure per Qatari tourist reached $558.5, making it the most valuable domestic source market globally. Spending per domestic Qatari tourist is forecast to rise to $593.2 by 2024, according to the publisher's forecast.
• According to Traveler Spending Database, the US source market is projected to be the most valuable globally in terms of average overseas tourism expenditure in 2021 with an average spend of $3,579.6. According to the publisher's forecast, Qatar is expected to overtake the US in terms of average spending per outbound tourist by 2024. In 2021, outbound travelers from Qatar spent $3,466.3 on average. This is expected to increase at a CAGR of 1.7% between 2021 and 2024, to reach $3,702.5 by 2024. Following this projected increase, Qatar is set to become the most valuable outbound source market, per tourist.
• In 2021, Mexico had the highest number of luxury hotel hotels worldwide, with 1,670 establishments. Over the last few years, a slew of new openings in Mexico has drawn attention away from Cancun's supersized resorts and towards boutique stays with a focus on local artisans, design and sustainability.
• According to Market and Competitor Insights database, just 4.4% of leisure passenger seats sold in 2021 were for chartered airlines. However, this airline segment saw growth in the pre-pandemic period at a CAGR of 3% between 2016 and 2019. This growth is expected to continue going forward at a CAGR of 7.1% between 2022 and 2025, according to the publisher's forecast.

Scope

• This report provides an analysis of the luxury travel industry including insights in luxury travelers, market trends influenced by COVID-19, consumer trends, destinations, sector deals, challenges and opportunities.

Reasons to Buy

• Gain an insight into luxury travel's leading players.
• Understand how they have adapted to the threat of COVID-19
• Understand the key luxury travelers that companies can look to attract
• Gain a detailed understanding of the key trends, issues and chellenges facing luxury travel companies