As the travel fraternity worldwide is turning towards opulent getaways, the growing tribe of luxury travellers in India are predicted to lead the global outbound travel charts until 2025.
In a recent research conducted by Amadeus, a major technology provider for the world travel industry, the travellers from the BRIC (Brazil, Russia, India and China) nations are expected to be more frequent in terms of making luxury outbound trips. However, the detailed report suggests that India, with the highest CAGR (compound annual growth rate) of 12.8 pc among the BRIC countries, promises to harbour the most inspired luxury travel tribes in the coming years. The report titled ‘Shaping the Future of Luxury Travel’, in association with Tourism Economics, looks at the opportunities and improvements across the global luxury travel sector till 2030.
One of the highlights of this report is India’s rapidly growing middle class and the growing Indian diasporas across the globe. According to the report, while India’s middle class is taking off and fueling a rapid growth in its luxury market, medium and long haul air travel is predicted to boom across classes. Indians abroad are also going to contribute to this national travel trend. Empowered by the growing middle class, India will likely lead the way in luxury travel, presenting a great potential for investments over the coming decade, the report states.
BRIC Luxury Travel Surges
The number of global travellers looking for luxury getaways is projected to increase at 6.2 pc over the next 10 years. The report points out why the BRIC nations are among the matured markets in terms of the changing definition of luxury travel. One key trend driving the future of luxury travel is the shift in values from the material to the experiential – rather than saving up to buy luxurious possessions, people are choosing to spend their money on experiences.
In terms of the outbound luxury travel growth of the BRIC nations predicted until 2015 by Amadeus, Brazil will reportedly grow at a relatively slower 4.2 pc rate, primarily due to a lack of an established middle class. Russia will experience a growth rate of 9 pc, despite the nation’s economic reliance on global oil prices. However, India’s luxury travel is higher than any of the other BRIC nations, followed by China, which continues to experience a double-digit growth at 12.2 pc, albeit at a slower pace than the past.
To optimize the potential of this booming travel sector in the next decade, travel companies in India and abroad must have a clear understanding of the luxury traveller tribes. This will not only help in anticipating how to approach the travellers and address the kind of experience that they are looking for but also comprehend the expectations they have from their upcoming trips.
India, along with the South Asian travel market, is expected to expand faster than any other region in the world. It is quite imperative to understand that the growth of the middle class markets will fuel the luxury travel segment in countries (sub-Himalayan countries, for instance) where the trend is yet to catch up.