In this piece, we will take a look at the top 15 luxury travel agencies in the world. For more high end travel companies, head on over to Top 5 Luxury Travel Agencies in the World.
The travel industry was one of the hardest hit sectors by the coronavirus pandemic. The industry suffered from a near shutdown of global travel and the closure of hospitality venues such as hotels, restaurants, and theme parks. Naturally, this also led to several firms going out of business, and others facing massive revenue losses. Taking a look at the airline industry for example, research conducted by the consulting firm McKinsey suggests that airlines lost more money than all other sectors combined during the pandemic. The loss estimate, which covers 2020, shows that out of the staggering $230 billion in total losses, $167 billion were attributed to airlines.
Yet, airlines were not the only travel sector that was impacted by the pandemic. Another impacted sector is the cruise ship industry. This segment was almost completely eliminated by the pandemic, as research from Admiral Makarov State University of Maritime and Inland Shipping shows that between the third quarter of 2019 to the first quarter of 2020, profits of cruise companies dropped from a respectable $30 billion to $50 million.
Since this piece is about high end travel companies, a deep dive into how the travel agency sector suffered from the pandemic is also merited. On this front, research from the Turkish Şırnak University shows that most travel agencies suffered at least an 81% decrease in their annual revenue. Guess that's what happens when your main market simply disappears in the blink of an eye. The study covers 330 travel agencies in Turkey, and sorts through their responses to a questionnaire, with 60% of the firms losing more than 80% of their revenue during the pandemic.
Delving deeper into this, a report from the International Monetary Fund (IMF) takes a look at both the growth of the travel agency sector and the virus's impact on it. It shares that when jet engines and aircraft were first used for travel in 1950, 25 million people took foreign trips. Since then, and during the last normal year before the pandemic hit, this figure grew to a massive 1.5 billion as the travel sector became integrated with several economies. The IMF adds that the pandemic put 100 million jobs at risk, and gross domestic products (GDPs) in economies that are dependent primarily on tourism could shrink as much as 20%. Additionally, it also outlines that the pandemic's impact on the industry would not fully dissipate until 2023 - making right now the perfect time to take a look at some high end travel companies.
So what exactly is luxury travel? Well, this sector is one of the most lucrative industries in the world as you might be surprised to hear. At least that's what the research firm Grand View Research thinks, as it shares in a report that the sector was worth an absolutely whopping $1.20 trillion in 2021 and that it grew to $1.28 trillion in 2022. From then until 2030 it is expected to grow at a compounded annual growth rate (CAGR) of 7.6% to sit at $2.32 trillion by the end of the forecast period. Grand View Research also shares that baby boomers accounted for the largest portion of the market, as their spending made up 42.65% of the high end travel company revenue. At the same time, millennials' love of travel and luxury places them to be the fastest growing spender in the market.
As to what's happening in the industry right now and how high end travel companies are reviving their business after the devastation of the pandemic, the leisure travel firm Artisans of Leisure's Luxury Travel Trends List of 2022 report provides some insights. This report reveals that there are 12 broad trends that are taking over the industry. These include over the top luxurious spending that is seeing consumers splurge; bucket list trips to countries such as Egypt for the pyramids; a rush of honeymoon travelers who were held back by the pandemic; loyalty to the high end travel firms that customers have previously relied upon; and customized travel for an immersive experience.
Since a large portion of the current themes in the luxury travel industry is based on a recovery from the coronavirus pandemic, it makes sense to reason that the high end travel companies will face a similar on ground situation as the standard firms. In fact, given that rich people are generally more resilient to inflation, the sector can also weather the current inflationary storm.
In order to understand what's happening in the industry right now, executives of Trip.com Group Limited (NASDAQ:TCOM) had some good news for investors during the firm's earnings call for the fourth quarter of 2022 as they shared that the firm had recovered from the 2019 lows and added:
The international flight capacity also recovered to 15% to 20% of the pre-pandemic level and continues to moving up. Quarter-to-date, we are glad to deliver strong results across our business lines. First, for our domestic hotel and air bookings have already surpassed the 2019 level. Second, our outbound travel bookings have grown by more than 300% compared to the same period last year and our hotel and air ticketing bookings on our global platforms continues to grow by triple-digits year-over-year. To conclude, the lifting of pandemic-related restrictions and reopening of country border have been an important driver to the recovery of global travel and our businesses. We acknowledge the uncertainty regarding potential looming new wave of COVID that may disrupt the recovery trends.
With these details in mind, let's take a look at some of the top luxury travel agencies in the world.
In order to compile our list of the world's top luxury travel agencies, we started off by scouring the internet for reputable lists of high end travel companies. This led us to narrow our search down to four lists (1,2,3,4). Then, a list of all the travel agencies appearing on these was made. Each time a firm appeared, it was awarded a point corresponding to its ranking. Then, each time a firm was absent from a list, it was awarded 15 points. Following this, the scores were averaged, and a total of 33 high end travel companies were sorted through this method. Out of these, the top 15 luxury travel companies in the world are listed below.
Top 15 Luxury Travel Agencies in the World
15. Inside Japan Tours
Insider Monkey's Score: 13
Inside Japan Tours offers small and tailor made trips inside Japan. These include exclusive private journeys to a variety of locations.
14. Contiki
Insider Monkey's Score: 12.75
Contiki is a New Zealand based travel company with destinations in Europe, Australia, and other countries.
13. Intrepid Travel
Insider Monkey's Score: 12.5
Intrepid Travel is an Australian adventure travel company headquartered in Melbourne, Australia. The firm is also a nonprofit company that uses its profits to invest in the communities and destinations that it visits. It is also one of the first carbon neutral companies in the world and the first global tour operator with a verified emissions target.
12. TCS World Travel
Insider Monkey's Score: 12.5
TCS World Travel is an American firm headquartered in Seattle, Washington. It was set up in 1991 and offers jet expeditions to hundreds of destinations all over the globe. The firm's aircraft are operated by Titan Airways, and its destinations include Japan and South America among others.
11. Ultimate Luxury Tours
Insider Monkey's Score: 12
Ultimate Luxury Tours is another Egyptian travel company. It offers desert safaris and luxury cruises.
10. Abercrombie & Kent
Insider Monkey's Score: 12
Abercrombie & Kent is one of the premium high end travel companies in the world. It has destinations spread across every continent in the world, including the Arctic regions and luxury Antarctica cruises that go for as high as $20,000.
9. VBT Bicycling
Insider Monkey's Score: 12
VBT Bicycling is a rather interesting high end travel company. It covers a variety of destinations in North America, South America, Oceania, and Europe for guided and self guided biking expeditions.
8. TourDragon
Insider Monkey's Score: 11.75
TourDragon owns the Ramasside Tour company, and it itself offers trips to several travel destinations such as Tokyo, Dubai, Paris, Barcelona, and more. These include private luxury tour options.
7. Insight Vacations
Insider Monkey's Score: 11.75
Insight Vacations is a premium guided tours company. Its destinations include European, American, and Asian countries.
6. Mountain Lodges of Peru
Insider Monkey's Score: 11.75
Mountain Lodges of Peru, as the name suggests, offers luxury travel services to Peruvian destinations.
