A recent report by Amadeus, a travel technology group, confirms that global travel is growing faster than global gross domestic product (GDP). According to Julia Sattel, the global head of Airline IT and an executive committee member for Amadeus, luxury travel is “growing even more rapidly as consumers expect more rewarding and luxurious travel journeys.”
Key findings from the report include:
• Over the next 10 years, the growth rate in outbound luxury trips is projected at 6.2%, almost a third greater than overall travel (4.8%).
• North America and Western Europe account for 64% of global outbound luxury trips, despite making up only 18% of the world’s population
• Asia Pacific’s luxury travel market will see faster overall growth than Europe’s from 2011-2025, but will decelerate from 2015-2025
• China’s luxury travel market will continue to experience double-digit growth at 12.2%, albeit at a slower pace than in the past.
• India’s luxury market’s compound annual growth rate of 12.8% is the highest of the 25 countries explored in this report.
• Luxury travel will outpace overall travel in Western and Eastern Europe, North America, and Southeast Asia (including Singapore, Thailand and the Philippines). These regions all demonstrate growing ultra-wealthy classes that are increasingly mobile and are driving global investment in the luxury travel industry.
As such, luxury retailers across the globe will have to adapt their sales strategies to meet the needs of international consumers. This could include implementing multilingual staff on the sales floor or altering signage in the store. Additionally, as the luxury market continues to grow and consumers become even more discerning, companies will have to reconsider marketing campaigns and tactics in order to compete.
