12 Shaping the Future of Luxury Travel | Future Traveller Tribes 2030
Compound Annual Growth Rate (CAGR) in luxury outbound trips
2011-2015 2015-2025 2011-2025 EUROPE ASIA PACIFIC
3.6% 6.7% 5.8% 7.1% 5.9% 6.3%
From now until 2025, the number of luxury trips from Brazil, Russia, India and China (BRIC) will increase.
China’s luxury travel market will continue to experience double-digit growth at 12.2%, albeit at a slower pace than in the past.
Russia’s luxury market will recover from its dip from 2013-2015, and experience a growth rate of 9%, despite the nation’s economic reliance on global oil prices and the fact that Western sanctions are set to remain in place until 2017.
Brazil’s lack of an established middle class and the weakness of the Brazilian Real against other global currencies means the growth of its luxury market is slow at 4.2%.
India’s luxury market’s CAGR of 12.8% is higher than any of the other BRIC nations, and the highest of the 25 countries explored in this report. India’s booming middle class presents great potential for luxury travel investment over the coming decade.
The rapid growth of India’s luxury market is interesting and fairly atypical. When broken down into the distance of luxury journeys, there is very little regional travel, and a very high percentage of medium and long-haul travel – which is the opposite case for the majority of nations.
However, this is really more of a geographical explanation than an economic one. While India’s middle class is taking off and fuelling a rapid growth in its luxury market, medium and long-haul air travel will increase rapidly across all classes – perhaps also due to the diaspora of Indian immigrants – and luxury travel will follow this national travel trend.
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. The sub-Himalayan countries will also see significant growth in overall travel, but the rate of its luxury market growth will gain momentum as its middle class markets grow and continue jet-setting.
“Some of the fastest growth in the luxury travel market is being driven out of Asia Pacific. Asian luxury travellers have a unique set of motivations and needs – understanding what drives their travel behaviour and providing a personalised experience will be critical for travel providers”
Hazem Hussein, Executive Vice President, Airline Commercial, Amadeus Asia Pacific
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