FX Excursions

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Asia’s Luxury Travel Ahead Of The Rest

Jun 1, 2016
eFlyer News

A new survey from Amadeus predicts the Asia Pacific luxury travel market will outpace the rest of the world. Luxury travel is showing popularity growth larger than all other forms of travel. While North American and Western European travellers have the majority share of these outbound luxury trips, it’s Asia Pacific leading in growth. The study says the region will experience faster overall growth from 2011 to 2025. “Some of the fastest growth in the luxury travel market is being driven out of Asia Pacific,” said Hazem Hussein, executive vice president, airline commercial, Amadeus Asia Pacific. “Asian luxury travellers have a unique set of motivations and needs — understanding what drives their travel behaviour and providing a personalised experience will be critical for travel providers.” In the last five years, Asia experienced the biggest increase in business-class booking, partially due to the rise of the region’s new affluent class. China, however, also showed a decline in private jet usage, which is attributed to the country’s recent crackdown on corruption and luxury consumers therefore being more cautious about drawing attention to their spending habits. As the ultra-wealthy classes in China tone down their spending, and the middle classes increase theirs, it’s likely many travel brands will begin catering to more middle-class business-class offerings, especially nearing 2020, when China’s middle class is projected to include more than half the population. However, it’s predicted luxury trips originating in China and India in particular will see significant growth through 2025. India’s growing middle class is driving large demand, more so than the 25 other countries studied in the survey, for an annual growth rate of 12.8 per cent. Indian consumers are also showing a trend toward medium- and long-haul travel versus regional travel, a preference differing in most other countries. Compared to India, China’s luxury travel market growth will slow slightly, as the market is more mature and established than India’s newfound affinity for luxury travel. In the coming years, other sub-Himalayan countries are expected to follow India’s lead.

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