Luxury travel growth outpaces overall market
Growth in luxury travel is outpacing the rest of the market, according to a new report published today by Amadeus.
The report, called Shaping the Future of Luxury Travel, is published in association with Connections, the networking event organiser for luxury travel providers, and includes exclusive data from Tourism Economics.
Data from the report based on business and first-class flights shows that luxury travel saw a compound annual growth rate (CAGR) of 4.5% between 2011-15, compared to an overall figure of 4.2%.
That trend is expected to accelerate over the next decade, with a CAGR of 6.2% projected for luxury travel against an overall growth rate of 4.8%.
The report found that North America and Western Europe currently account for 64% of global outbound luxury trips, despite accounting for only 18% of the world’s population.
However, growth in the sector is likely to be driven by other markets, with India’s luxury market CAGR of 13% being the highest of the 25 countries explored in the report and growth in the Asia Pacific region outpacing that of Europe’s.
In addition to analysis of travel data, the report also analyses changes to the luxury travel sector, and identifies challenges and opportunities the industry will face over the next decade.
It finds that consumers are increasingly spending disposable income on experiences rather than material goods, and a desire for ‘life experiences’ is partly spurring growth in luxury travel.
Following on from a 2015 Amadeus report which identified six traveller ‘tribes’ based on consumer behaviour, the new report identifies six luxury traveller tribes, which are: Always Luxury; Special Occasion; Bluxury; Cash-rich, time-poor; Strictly Opulent; and Independent Affluent.
Rob Sinclair-Barnes, strategic marketing director at Amadeus IT Group, said: “Luxury means different things to different people and this is especially true today. As emergent middle classes seek the material aspect of luxury travel, more mature markets are craving a new, evolved kind of luxury.
“This is why offering luxury customers a relevant personal and exclusive experience will become even more crucial than it is today – it will be a differentiating factor between old and new luxury.”
To read the full report, c