Luxury travel is booming. Instagram-perfect, soaked in quality, comfortable, and free of stress. Luxury travel is the pinnacle of travel. Luxury travelers know what they want and they can afford to have what they want. From the very best champagne to exclusive cabins, luxury travelers exist in a world that the rest of us can only dream of. Research Dive believes that the luxury travel market has a massive runway of growth ahead of it. Over the 2021-2028 period, the luxury travel market is expected to grow at a compound rate of 8.8%, at a time when the world economy is expected to be dominated by stagflation, a phenomenon characterized by inflation and slow growth.
The super-rich, who dominate the luxury travel market, did extremely well during the global pandemic. For instance, billionaires grew their wealth by 54% between the onset of the pandemic in March 2020 and the end of 2020. One key reason is that many wealthy people have positions in the stock market. The pandemic witnessed one of the great stock market booms, as retail investors, flush with money from stimulus checks, used that money to invest in stocks. With stock prices soaring, the wealth of the already wealthy went even higher. The greater wealth of the prime customers of luxury travel can only be a good thing for the luxury travel market.
Secondly, with so many people have spent significant amounts of time cooped up at home thanks to lockdowns and remote work, many people made savings from being unable to go on holiday last year, and from not having to commute to work, or from being able to go out on weekends. This phenomenon was added by online digital marketing companies such as SEO agencies, who promoted travel websites. So, even people who may previously have not been able to afford luxury travel, have the savings to afford it this time around, thanks to their period of forced savings.
Another reason for the boom in luxury travel is that extended periods of lockdown made travel even more enticing for luxury travelers. As the world returns to some kind of normalcy, the desire for travel, built up over many months, has exploded into action. Few people, after months and months of lockdown, would turn down the chance to travel, regardless of whether they are luxury travelers or not.
The luxury travel market is built on certain largely unshakeable foundations. For one thing, people enjoy traveling as a way of experiencing the cultures and traditions of foreign people. Humanity has traveled since the dawn of time, because this curiosity, this desire to learn and experience new things, is built into our very being.
For many luxury travelers, the chance to enjoy new cuisines is enough to get them on a plane. Although in our globalized world, it’s possible to experience a variety of cultures and cuisines within a great metropolis, there’s something about experiencing these things in their natural context that makes travel so vital.
So long as you have glasses to protect eyes from blue light, you can go out into the world and experience its wonders and delights. Luxury travel is here to stay and it’s only going to get bigger.