Luxury Travel: Full Speed Ahead

Luxury travel is booming according to new research presented in December at the International Luxury Travel Market in Cannes. In most countries across the world, luxury travel is one of the best performing sectors of the travel business with many countries currently enjoying between 10 and 20 per cent annual growth. New research by ILTM indicates the luxury travel industry as a whole is booming, with huge growth in developing markets such as India, Russia and China. The global luxury travel industry now comprises an estimated 25 million annual arrivals, accounting for 25% of international tourism spend.

The global luxury travel business now comprises an estimated 25 million annual arrivals (3% of total international arrivals) accounting for 25% of international tourism spend – at least US$180 million. On average, spend per trip is estimated at between US$10,000 - 20,000.

The luxury travel boom is being fuelled by the increase in High Net Worth Individuals (HNWI) - those with at least US$1million in net financial assets - and also by the growth in their individual wealth. According to the World Wealth Report (Merrill Lynch and Capgemini), the number of HNWI grew by 8.3 % in 2006 and their individual wealth grew by 11.4%.* Wealth is concentrating to an even greater extent amongst Ultra High Net Worth Individuals (Ultra HNWI) – those with financial assets worth at least US $30 million – whose number increased by 11.3 per cent in 2006 with their assets growing by 16.8 per cent.

NetJet, Hawker 400XP

Privacy appears to be top of the agenda amongst this affluent group with private air travel increasingly being perceived as a “necessary luxury”.