Highest luxury growth rate among BRIC nations

India’s luxury market’s compound annual growth rate (CAGR) of 13 per cent is higher than any of the other BRIC nations, and is the highest of the 25 countries explored in a recent Amadeus report called Shaping the Future of Luxury Travel. This report looks at luxury travel trends until 2025 to help the travel industry better target and service its fastest-growing segment. The report was commissioned by global travel technology provider, Amadeus, and developed with data from Tourism Economics and with dozens of expert interviews with global luxury travel experts across specialist travel concierge agencies, airlines, hoteliers and intermediary suppliers through Connections, a global networking event organiser for luxury travel providers. Global consumers are increasingly spending their disposable income on experiences rather than material goods. Consumers’ desire for life experiences is spurring a growth in luxury travel that is outpacing the rest of the travel industry, finds a new Amadeus report featuring data from Tourism Economics. Between 2011 and 2015, luxury travel, in terms of outbound flights on business or first class, saw a 4.5% compound annual growth rate (CAGR), versus 4.2% for overall travel. This trend will continue to accelerate over the next ten years, with luxury travel trips projected to grow at a CAGR of 6.2% between 2015 and 2025, almost a third faster than overall travel at 4.8%. This trend is good news for the luxury travel sector. The report, Shaping the Future of Luxury Travel, reveals the fresh challenges and opportunities that the luxury travel market will face over the next decade.Some key findings from the report include: North America and Western Europe account for 64% of global outbound luxury trips, despite only making up 18% of the world’s population. From 2011-2025, Asia Pacific’s luxury travel market will see faster overall growth than Europe’s, but this growth will decelerate from 2015-2025, it noted.