Luxury travel market set to more than double by 2035 as older, wealthier travellers drive demand

The global luxury travel market is forecast to exceed $2.1tn by 2035, with Europe retaining the largest share and travellers aged over 50 emerging as the fastest-growing segment, according to new research

The global luxury travel market is projected to more than double in value over the next decade, reaching $2.15tn by 2035, as demand rises among older, wealthier travellers and high-end tourism continues to expand in Europe, according to new research.

A study by Allied Market Research estimates the market will grow at a compound annual rate of 7.4 per cent between 2024 and 2035, up from $890.8bn in 2023. Growth is being driven by rising numbers of high-net-worth individuals, longer life expectancy and increased spending on bespoke travel experiences.

Travellers aged 50 and over are expected to represent the fastest-growing segment of the market. The report attributes this to higher accumulated wealth, more discretionary time and growing demand for tailored, experience-led travel among retirees and near-retirees.

Europe was identified as the largest regional market for luxury travel, underpinned by established tourism infrastructure, cultural heritage and demand for premium experiences in cities such as Paris, Rome and London. The region’s position is also supported by proximity to affluent source markets in North America, the Middle East and Asia, the report said.

By type of travel, adventure and safari trips accounted for the largest share of the luxury travel market in 2023, reflecting a shift among affluent travellers towards experiential and destination-led tourism rather than traditional resort stays.

At the upper end of the market, the “absolute luxury” segment — including private aviation, yachts and fully bespoke itineraries — was identified as both the largest and fastest-growing category, driven by demand from ultra-high-net-worth individuals.

Allied Market Research said technology adoption by luxury travel providers is also reshaping the sector, as companies invest in digital personalisation and immersive planning tools to differentiate offerings in an increasingly competitive market.

READ MORE: ‘Bleisure boom turning Gen Z work travel into ‘life upgrade‘. New research from Hotels.com shows Gen Z and Millennial business travellers are transforming work trips into personal experiences — from self-funded hotel upgrades and fine dining to social-media documentation and extended “bleisure” stays.

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