A new luxury travel trends report published today by International Luxury Travel Market (ILTM) in association with Euromonitor, highlights a predicted increase in international luxury travel in the face of growing tourism flows from emerging markets and aspirational middle class consumers. The 14th edition of ILTM opened yesterday in Cannes with 1500 high end travel products and experiences meeting with approximately 1500 luxury travel buyers across the event to build business and business opportunities in over 60,000 one-to-one meetings.
Alison Gilmore, Senior Exhibition Director, ILTM Portfolio says,“This exclusive ILTM report spells good news for both luxury travel and luxury spending. Over a billion extra people will be travelling in 2030, with over 5 billion consumers living in cities – travel infrastructure and mindsets will need to change as the luxury industry evolves.”
Luxury travel is expected to see more buoyant growth across the globe with highest growth seen in the Americas, Asia Pacific and the Middle East and Africa, thanks to increasing income and a growing middle class.
Germany and the UK are the top source markets from Western Europe. Europe will remain a popular destination, with a weaker euro currently providing good value for money for US tourists. Russia however is predicted to see minimal growth in outbound trips over 2014-2019 with the MINTS also lagging behind in departures, despite their economic growth, with incomes remaining too low for many citizens to travel.
Worldwide, the report reveals that the number of affluent households is expected to grow between 2015 and 2030. North America will continue to have the wealthiest number of households, but despite the economic slowdown Asia Pacific is still expected to see the fastest increase, posting a predicted 113% growth between 2015 and 2030. Australasia and North America will follow Asia Pacific, posting growth of 86% and 80% in affluent households respectively, between 2015 and 2030.
Asia Pacific remains the global powerhouse for tourism arrivals, with solid increases predicted for the next five years as the number of travellers continues to expand throughout the region. Second and third tier cities in China are set to welcome more luxury hotel investments as they become increasingly accessible and see large business flow volumes. Despite a slight slowdown in growth, Chinese outbound travellers are predicted to reach over 87 million by 2019, with the most popular destinations all located in Asia Pacific.
Africa and the Middle East will see growing demand and “non-stop investment” with a strong focus on luxury hotels drawing significant attention to the Middle East. In 2014, the region recorded strong average daily rates and occupancy rates but the regions also now boast the fastest growing personal luxury goods sales in the world.
Alison Gilmore concludes,“The importance of the internet is key for the luxury goods and travel industry – high end agents understand how essential it is to map out all stages of the traveller’s journey – before, during and after the experience. Mobile technology is also playing an increasingly important role in the personalisation of luxury travel journeys for travellers from all four corners of the world.”