LUXURY MARKET ON RISE

Luxury travel continues to grow: key figures from IPK’s World Travel Monitor…

More and more holidaymakers are spending heavily on the best weeks of the year. With an increase of around 18% since 2014, luxury travel has grown nearly twice as much as international travel in general, which increased by about 9% since 2014, according to IPK International’s World Travel Monitor. For this analysis, international luxury trips were defined as outbound short trips of up to three nights with a spending of more than 750 euros per night as well as outbound long trips of four nights and more with a spending of more than 500 euros per night. In 2016, there were about 54 million international luxury trips, corresponding to a markets share of 7%.

Germany most popular luxury travel destination in Europe

The largest source markets for luxury travel are the USA, with 13.7 million foreign luxury trips, and China with 10 million trips. Other major source markets are Japan, Great Britain and Taiwan. In Europe, most luxury trips are undertaken by the British with 3.6 million trips, ahead of the French and the Germans. On the other hand, the by far most popular luxury travel destination was the USA with 8.1 million trips, ahead of Canada and Germany. In Europe, Germany received nearly 4 million luxury travel visitors in 2016 and hence overtook Italy as the number one luxury travel destination in Europe. Besides Germany and Italy, also France and Great Britain play an important role.

City trips are the most important luxury holiday type

Holidays abroad together with trips to visit friends and family and other leisure trips represent the dominant share of all luxury trips with nearly 75%, while business trips account for every fourth trip. The most popular types of luxury holidays are city trips with a share of 29%, followed by touring holidays as well as Sun & Beach holidays.

Higher importance of travel agencies among luxury travellers

For luxury travel planning the Internet is used by around 83%, which is very similar to all international travel. On the other hand, 51% of international luxury travellers use travel agencies as an information source, while the worldwide average is much lower with 33%. The same occurs when it comes to travel agencies as a booking site. While on average 27% of all international outbound trips are booked through a travel agency, for international luxury trips travel agencies play a notably more important role with a share of 40%.

More detailed information on destinations and source markets as well as the characteristics of the outbound travel behaviour of luxury travellers can be found in the “World/European Luxury Travel Report”, which can be ordered from IPK International.