Global tourism revenue amounted to US$ 5.9 trillion in 2019 and is forecast to continue growing. While tourism in general is expected to increase with a compound annual growth rate of 6.4 percent in the next five years, luxury tourism is expected to grow at a faster pace with a CAGR of 7.3 percent, Statista says in a report.
High-end tourism is a niche market designed to satisfy the lavish travel expectations of high net worth individuals. With a global value of 831 billion U.S. dollars, it stands out as a prime revenue driver.
Currently, the United States has the biggest luxury travel market with a value of nearly US$263 billion. China comes in second with a market value of approximately US$90 billion. China’s and India’s luxury markets are forecast to grow the most rapidly in the next five years, mostly driven by the growth of the domestic luxury market.
“The luxury tourism market accounts for 14% of the revenues today already. This makes it a highly competitive growth environment. A key trend that has been shaping luxury tourism in recent years is the increase in multigenerational travel. Families are seeking an opportunity to spend quality time together and strengthen bonds. As Millennials and Generation Z gain economic influence and represent an increasing proportion of luxury travelers, adventure, uniqueness, as well as sustainability also become vital, as they contribute to a high-profile social media image,” Friedrich Schwandt, Founder and Managing Director of Statista, emphasized.