There have never been as many possibilities for luxury travel as there are today. From private jets to private yacht charters, helicopter rides over remote locations, luxury trains, hot air balloon experiences over exotic landscapes, and finally to recreational vehicles(RVs)there are numerous ways to experience the sublime.We will talk more about this later as let’s firstquickly delve into the current state and potential of the global luxury travel market.
The luxury travel market is expected to be valued at USD 2,335,830 million globally in 2022 and grow at 11.06% CAGR to reach USD 4,382,130 million by 2028. This upward trajectory is consistent with a similar trend in India, where it is projected that the luxury travel industry will grow at a robust 12.8% CAGR between 2021 and 2026. (source: alliedmarketresearch.com)
The size of the worldwide market for air charter services was estimated at USD 19208.65 million in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 12.04 percent to reach USD 37994.86 million by 2028. With a 31% market share in 2022, North America led, followed by Europe, Australia, and the Asia-Pacific area. With a CAGR of 6.2%, the Air Charter Services market in Asia Pacific is the fastest-growing area and is predicted to reach a market value of US$6.8 billion by 2029.(source:/www.nextmsc.com)
Back home,the scope of the air charter market in India is set to widen as big infrastructure projects are being undertaken by the Indian government and private companies, both nationally and globally.“Though the average annual aircraft utilization is between 300 and 400 hours compared to 800 to 1,000 hours by European and US charter companies, government initiatives like ‘Make in India’, ‘Smart Cities’ and campaigns like ‘Start-up India’ are seeing rising investor confidence amongst the Indian business community,”opines
Rajeev Wadhwa, chairman, and CEO of Baron Aviation.
By 2033, the global yacht charter market is projected to have grown from its predicted US$ 19 billion worth in 2023 to US$ 31 billion. Over the course of the projected period, the usage of yacht charters is anticipated to grow at a CAGR of 5%. Yacht charter demand is being driven by rising interest in and spending on leisure pursuits like sailing and expanding marine tourism.
The world of RVs – awhole new dimension of Luxury travel
Let’s come back and dive deep into the world of Recreational Vehicles and the wonderous experience they promise to unfold.Customization and having it your way is what defines the ultimate luxury in travel today and this is beautifully exemplified by RVs. This has also sprouted neo-nomads – people who frequently have different travel preferences than conventional tourists, willing to spend for experiences that give them a chance to interact and experience the local way of life in their way and time. Recreational Vehicles (RVs) epitomize this experience!
Traditionally, we all know that there are cars and SUVs. Now here comes the RVs – in a variety of forms, such as fifth-wheel trailers, truck campers, pop-up campers, motorhomes, campervans, coaches, and caravans (sometimes referred to as travel trailers and campers). Motorhomes hold a 37.4% global market share, with caravans and towable RVs holding the remaining shares.
The size of this global RV market was at $47.47 billion in 2022 and is expected to increase at a CAGR of 4.03 percent from $48.26 billion in 2023 to $63.65 billion by 2030.Globally, RV usage has increased in key regions like North America and Europe due to a significant rise in leisure activities and an increase in camper sites. Consequently, this has boosted the appeal of RVs in regions with lower penetration rates, such as the Middle East and Asia-Pacific areas. The impact of covid 19 further propelled the growth of this segment as the populace switched to an alternative source for tourism and outdoor activities while maintaining social distance. This customer segment is of two kinds: personal and commercial. Due to the widespread road excursions and camping site transportation, which saw strong demand during COVID and post-COVID, personal use is anticipated to hold a significant market share during the estimated period. The desire for RV ownership has increased globally as a result of these factors.
Another interesting thing to note is that this growth of RVs, as another arm of luxury travel,gives a fillip to the economy right from manufacturing and maintenance to hospitality and tourism services as well.
Luxury RV travel experience – the India Story
Back home, the recreational vehicle (RV) market in India is one of the fastest-growing segments within the country’s automotive industry.This market is predicted to grow at a compound annual growth rate (CAGR) of about 13.1% between 2020 and 2026.(Source:6wresearch.com)Business Monitor International (BMI) projects that household spending in India will exceed $3 trillion by 2027 as the country’s disposable income grows at a compound annual rate of 14.6%. It is projected that by that time, 25.8% of Indian households will have $10,000 in annual discretionary income. The rise of medical, religious, and sports tourism is also a contributory factor alongside the booming “octopus class” in India which is fuelling consumption growth. The Ministry of Tourism approved 76 projects in August ‘22 to the tune of US 678.39 million to build tourism infrastructure. This would increase demand for products and spur the expansion of leisure activities like camping in India. Through the “Incredible India” program, the government promotes travel and tourism from foreign markets by running promotions on international travel and hotel platforms. In addition, it joined hands with MakeMyTrip, an online travel company to showcase 600 plus lesser-known tourist destinations through The Traveller’s map of India microsite developed by the MakeMyTrip team. This thoughtfully curated microsite has been designed keeping in mind the Government of India’s ‘DekhoApnaDesh’ initiative.
The selections have been segmented with tags such as wildlife, mountains, beaches, heritage, adventure,etc, to help travellersnavigate through their choice of travel genres.All these initiatives have in turn created a favourable environment for increased sales of RVs, the development of specific RV parks, the improvement of road systems, and the improvement of amenities like electricity, water supply, and sanitary conditions in well-known tourist locations. The Traveller’s Map of India is also conducive to domestic tourism’s potential as an important tool for socio-economic development and plays a substantial role in the multifaceted expansion of India’s economy.
Conclusion
We see that the RVs are a flexible, immersive, ultra-luxurious way to experience a country’s beauty, all at one’s own pace. They personify the next level of luxury travel – the stuff that dreams and fantasies are made of – incomparable, unparalleled.Get readyto craft your ownsplendorous, seven-startravel experience today.