The growth in the luxury outbound trips from the Asia-Pacific region is slowing but it remains strong thanks to robust demand from travelers in China and India, according to a new report from travel technology group Amadeus.
Amadeus noted that the compound annual growth rate for luxury outbound trips in Asia is slowing to 5.9 percent through 2025, compared to the 7.1 percent growth registered between 2011 and 2015. In comparison, Europe’s luxury travel CAGR is accelerating to 6.7 percent through 2025, up from 3.6 percent growth between 2011 and 2015. The group compiled the report based on a combination of travel data, discussions with industry executives and a survey conducted in association with The Telegraph.
The travel group attributed the deceleration in high-end Asian travel to the overall economic slowdown in China and the country’s ongoing anticorruption drive.
“[Fewer] people want to be perceived as ultrarich and attract scrutiny — as illustrated by the nation’s declining private jet market. In other words, luxury travelers in China are more conscious about flaunting their wealth, and will make travel choices accordingly,” Amadeus said in the report.
China’s luxury travel market is seen growing at 12.2 percent per year through 2025, according to the study. Meanwhile India’s market is seen growing at an annual rate of 12.8 percent over the same time period — it is seeing the highest growth of the 25 countries it examined for the report, Amadeus said.
“The rapid growth of India’s luxury market is interesting and fairly atypical. When broken down into the distance of luxury journeys, there is very little regional travel, and a very high percentage of medium and long-haul travel — which is the opposite case for the majority of nations,” Amadeus said, adding that the country is home to a “booming” middle class of consumers.
“While India’s middle class is taking off and fueling a rapid growth in its luxury market, medium- and long-haul air travel will increase rapidly across all classes — perhaps also due to the diaspora of Indian immigrants — and luxury travel will follow this national travel trend,” the report said.
Elsewhere, the report stressed that luxury travelers are requesting increasingly personalized, exclusive services and experiences. Amadeus said it’s important for companies to realize that not all travelers want the same thing.
“Curating something that appeals to them on a specific, personal level that goes above a traveler’s ‘norms’ is key to the next chapter of luxury travel,” according to Amadeus. “Luxury travel is subjective. For one traveler, it could be a private multimillion-dollar cruise around the Arctic on a famous yacht. For another, it could be the reassurance of having their dietary requirements automatically catered for throughout their entire holiday and a bespoke designer wardrobe waiting for them in their hotel room — without them having to ask. For some, it could be having their [favorite] Michelin-starred chef flown in to prepare a meal in a Bedouin tent in the middle of the Sahara.”