Tourists on Rodeo Drive, Beverly Hills, upscale shopping and dining district in California, US
ASIA-PACIFIC’s luxury travel market will see faster overall growth than Europe’s from 2011-2025, according to a new Amadeus report featuring data from Tourism Economics.
North America and Western Europe accounts for 64 per cent of global outbound luxury trips, but the Compound Annual Growth Rate (CAGR) in luxury outbound trips for Asia-Pacific from 2011-2025, projected at 6.3 per cent will be higher than Europe’s (5.3 per cent).
Leading the region are India and China, with a CAGR of 12.8 per cent and 12.2 per cent respectively. India’s projected growth in luxury travel is the highest of the 25 countries explored in the report and presents great potential for luxury travel investment over the coming decade.
The report further finds that growth in luxury travel will outpace overall travel, spurred on by consumers’ desire for life experiences. Over the next 10 years, the growth rate in outbound luxury trips is projected at 6.2 per cent, almost a third greater than overall travel (4.8 per cent).
“The Asian luxury travel market is one to watch. It presents a lucrative opportunity for travel players but will not be an easy one to crack. Asian luxury travellers have a unique set of motivations and needs – truly understanding what drives their travel behaviour will be critical for travel providers looking to tap into that segment,” said Hazem Hussein, executive vice president, airline commercial, Amadeus Asia Pacific.
