India’s luxury market has been growing at an annual rate of 12.8 % from 2011-2015.
According to a report released by Amadeus, over the next 10 years, the growth rate in global outbound luxury trips is projected at 6.2%, almost a third greater than overall travel (4.8%).
India’s luxury market’s CAGR is higher than any of the other Brazil, Russia, India and China (BRIC) nations, and the highest of the 25 countries explored in this report. From now until 2025, the number of luxury trips from BRIC nations will increase.
“India’s booming middle class presents great potential for luxury travel investment over the coming decade,” said the report.
Considering the distance of luxury journeys in India, there is a very high percentage of medium and long-haul travel compared to regional travel within India.
While India’s middle class is taking off and fuelling a rapid growth in its luxury market, medium and long-haul air travel will increase rapidly across all classes.
Asia had the highest percentage increase in business class flight bookings for outbound travel with India and China leading the pack with two-digit growth.
The report also said that Asia Pacific’s luxury travel market will see faster overall growth than Europe’s from 2011 to 2025, but there will be a slowing down of growth rate from 2015 to 2025.
The sub-Himalayan countries will also see significant growth in overall travel, but the rate of its luxury market growth will gain momentum as its middle class markets grow and continue jet-setting.
And the market leaders North America and Western Europe account for 64% of global outbound luxury trips, despite making up only 18% of the world’s population.