A new Amadeus report, Shaping the Future of Luxury Travel, reveals that Asia Pacific’s luxury travel market will see faster overall growth than Europe’s from 2011-2025. North America and Western Europe lead the world’s luxury travel market – accounting for 64% of global outbound luxury trips despite only making up 18% of the world’s population. However, the Compound Annual Growth Rate (CAGR) in luxury outbound trips for Asia Pacific from 2011 – 2025, projected at 6.3%, will be higher than Europe (5.3%).
The report further finds that at a global level, growth in luxury travel will outpace overall travel, spurred on by consumers’ desire for life experiences. According to Tourism Economics data, this trend will continue to accelerate over the next ten years, with luxury travel trips projected to grow at a CAGR of 6.2% between 2015 and 2025, almost a third faster than overall travel at 4.8%.
Commissioned by Amadeus and developed by Connections Luxury, the report predicts that in the next decade there will be the following shifts in the luxury travel industry:
- We have entered a new age of luxury travel, where luxury is curated, real-time and experience-led
- Driven by India’s impressive luxury market growth, South Asia’s luxury travel market will expand at a faster rate than any other region explored
- China’s relatively mature luxury market is set against a backdrop of tightening regulations and a battle against corruption. This means luxury travellers in China are more conscious about flaunting their wealth
- Southeast Asia, including Singapore, Thailand and Philippines, will also see luxury travel outpace overall travel