U.S. Luxury Travel Market Growth & Trends
The U.S. luxury travel market is anticipated to reach USD 634.27 billion by 2030 and it is projected to grow at a CAGR of 8.1% from 2024 to 2030, according to a new report by Grand View Research, Inc. There is a growing and robust demand for customized luxury travel experiences. According to a survey conducted by Virtuoso in 2022, 68% of luxury travel advisors noted that their clients are going to great lengths to prioritize privacy, opting for extended vacations and allocating more resources. This includes arrangements such as booking private jets, islands, and villas, as well as engaging guides with specialized knowledge aligned with their specific interests.
An increasing number of travelers in U.S. are opting for tours of their preferred destinations due to the desire to learn more about the place that they are visiting. Luxury travelers often prefer customized and private tours to general tour packages for unique and highly personal experiences. The post-pandemic trends of private tours due to concerns for health and safety are driving the market growth.
Travelers are drawn to the diverse traditions and cultures of other countries. They are keen to explore the diverse performing arts, handicrafts, ceremonies, and cuisines. Such experiences inspire cultural interaction, encouraging conversation, understanding, and promoting harmony. Luxury travelers in the U.S. exhibit a trend of meticulous vacation planning, often arranging accommodations and dining experiences well in advance. The Travel Trends 2023 study found that 51% of U.S. travelers are now booking their vacations far in advance, a marked departure from previous years.
More than a third of this demographic cited fear of price inflation as a primary motivator for securing travel plans early. This shift suggests that consumers are becoming increasingly cautious as costs rise and are taking proactive steps to ensure an affordable travel experience.
Key players offer a range of curated experiences, from VIP events to adventurous excursions, enhancing a brand’s appeal and distinguish it within the competitive market. For instance, in December 2022, Kensington Tours Ltd introduced a collection of insider-style VIP experiences designed around high-profile events. This included the opportunity to attend a Hollywood VIP after-event called ‘The Party’ and experience the world’s biggest auto race in Las Vegas from the pit lane of the team paddock.
Request a free sample copy or view report summary:
U.S. Luxury Travel Market Report
U.S. Luxury Travel Market Report Highlights
- Based on tour, the culinary travel & shopping segment is expected to witness substantial CAGR during the forecast period. Travelers typically engage in activities like taking cooking classes, retracing historical culinary journeys, embarking on wine, beer, and spirits trails, participating in food fairs and festivals, and visiting food production facilities and processing centers for exploratory purposes
- Based on age group, the millennial segment is expected to witness substantial CAGR during the forecast period from 2024 to 2030. Millennials prioritize experiences over material possessions, valuing the memories and personal growth that luxury travel can provide. Millennials are, hence, shifting their focus from traditional offerings to a wider range of compelling traveling experiences
- Based on booking mode, the online travel agencies segment is expected to witness substantial CAGR during the forecast period from 2024 to 2030. Online platforms provide a comprehensive array of stay options for vacation rentals. These platforms serve as a hub for listing a diverse range of accommodations catering to different traveler preferences
