From private tours to Michelin stars, luxury travel shifts gears

The global luxury travel market was valued at USD 1.59 trillion in 2025 and is projected to reach USD 3.04 trillion by 2033, expanding at a compound annual growth rate (CAGR) of 8.5 per cent between 2026 and 2033. Rising spending by elite travelers seeking unexplored destinations and distinctive experiences is a key driver of this growth.

An increasing number of travelers are opting for curated tours of their preferred destinations, driven by a desire to gain deeper insights into the places they visit. Luxury travelers, in particular, favour customised and private tours over generic packages to ensure highly personal and exclusive experiences. Post-pandemic concerns around health and safety have further accelerated demand for private travel, allowing guests to explore destinations with family and friends at their own pace.

Rising disposable incomes, growing wealth among high-net-worth individuals and upper-middle-income consumers, and a strong shift toward experiential consumption are encouraging travelers to spend more on premium accommodations, bespoke itineraries, and exclusive experiences. Luxury travel is no longer just about status; it is increasingly associated with comfort, privacy, authenticity, and meaningful engagement with destinations.

The luxury travel industry is highly segmented, with distinct traveler “tribes” shaped by varying motivations, wealth levels, and planning behaviours. According to the Shaping the Future of Luxury Travel – Future Traveler Tribes 2030 report, “Bluxury” travelers form the largest segment at 31 per cent, blending business trips with indulgent leisure stays. The cash-rich, time-poor segment accounts for 24 per cent, prioritising flexibility, privacy, and seamless service due to demanding schedules. Special-occasion travelers (20 per cent) view luxury as a reward for milestones, often leveraging loyalty programmes for strategic upgrades.

More exclusive but influential are strictly opulent travelers (18 per cent), who seek glamour and status, frequently influenced by social media trends. Always-luxury travelers (4 per cent) consistently opt for the highest-end, curated experiences with little regard for cost. At the niche end, independent and affluent travelers (3 per cent) value autonomy, self-indulgence, and trusted advice for personalised escapes.

Culinary tourism has also emerged as a strong niche within the luxury travel market. Enthusiasts are increasingly embarking on food-focused journeys that extend beyond fine-dining restaurants to include private home dining, Michelin-starred experiences, cooking classes, farm-to-table visits, and truffle hunting.

Experiential luxury that integrates high-end hotels, resorts, cruises, and restaurants has become one of the fastest-growing segments of the market. Younger consumers, in particular, are showing a growing appetite for luxury experiences over material possessions, further fuelling industry growth.

In the United States, the luxury travel market is expected to grow at a CAGR of 7.8 per cent between 2025 and 2030. The U.S. is a popular luxury travel destination with a diverse range of luxury experiences, from high-end shopping in cities like New York and Los Angeles to exclusive resorts in scenic locations like Hawaii and Colorado.

The country remains a major luxury destination, offering everything from high-end urban shopping and fine dining to exclusive resorts in scenic locations. Advanced infrastructure, strong safety standards, and well-developed transport networks continue to enhance its appeal among affluent travelers.

Europe accounted for 33.8 per cent of the global luxury travel market in 2025, driven by strong destination appeal and rising demand for personalised, high-quality experiences. Travelers increasingly favour curated itineraries, exclusive access, and bespoke services over traditional sightseeing. Europe’s mix of historic cities, boutique hotels, private villas, luxury cruises, and Michelin-starred dining continues to attract premium spending from both regional and international visitors.

The Asia-Pacific luxury travel market is expected to witness the fastest growth, with a CAGR of 9.9 per cent from 2026 to 2033. Expanding economic prosperity, rising disposable incomes, and a growing affluent class, particularly in China, India, South Korea, and Southeast Asia, are driving demand. Increased exposure to global lifestyles and social media has further heightened interest in personalised, exclusive, and culturally immersive travel experiences that go beyond conventional tourism.