Tourism Market

Tourism Market Outlook (2024 to 2034)

Expanding at a CAGR of 4.8%, the global tourism market is projected to increase from a valuation of US$ 2,379.15 billion in 2024 to US$ 3,801.88 billion by 2034.

It is anticipated that rising emerging trends, such as art tourism, adventure tourism, and so forth will accelerate the expansion of the global tourist industry. Examples of adventure tourism that made a substantial contribution to the tourist market share in these years include rock climbing, mountaineering, excavation, kayaking, and other activities.

Second, the administration and commercialization of all forms of tourism are greatly aided by the use of tourist websites. It is also projected that the growing popularity of social networking sites will present a positive opportunity for the growth of the travel industry.

Individualized services, dependable transportation, exclusivity, and cordial and professional interactions with personnel set the standard for luxury travel. Positive aspects include increasing political stability, a more acceptable attitude toward sexual orientation, gender, ethnicity, and race, as well as more lenient visa requirements, which all significantly affect international travel. With flexible itineraries that include leisure and entertainment, travelers want to design their own distinctive experiences.

Because they want to understand more about the places they are visiting, more tourists are choosing to take tours of their favorite locations. For distinctive and incredibly intimate experiences, luxury visitors frequently choose private and bespoke excursions over standard tour packages.

The luxury travel industry is driven by the post-pandemic trends witnessed in private tours because of health and safety concerns. People travel at their leisure with friends and family on private and customized excursions. For example, a TripAdvisor poll indicates that family-friendly tours are the ones that are expanding more significantly. In 2021, reservations for these excursions rose by more than 200%, and for American tourists, by 291%.

One of the most important travel demographics that is assisting in getting the industry back on track is the rising number of high net worth people (HNWIs) worldwide. This group is driving market expansion throughout the projected period. The World Wealth Report 2022 estimates that wealth increased by 8% in 2021 while the whole HNWI population grew by 7.8%.

Report Attribute	Detail
Tourism Market Size (2024E)	US$ 2,379.15 Billion
Forecasted Market Value (2034F)	US$ 3,801.88 Billion
Global Market Growth Rate (2024 to 2034)	4.8% CAGR
Mexico Market Growth Rate (2024 to 2034)	3.4% CAGR
Japan Market Value (2034F)	US$ 121.55 Billion
North America Market Growth Rate (2024 to 2034)	4.7%
Business and Professional Travelers Segment Growth Rate (2034F)	3.4%
Key Companies Profiled	Exodus Travels Limited; Cox & Kings Ltd.; TUI Group; Butterfield & Robinson Inc.; Geographic Expeditions, Inc.; Scott Dunn Ltd.; Travel Edge (Canada) Inc.; Abercrombie & Kent USA, LLC; Micato Safaris; Lindblad Expeditions.

Which Market Possibilities are Raising the Profits of Key Players in the Travel Market?

“Government Going One Step Ahead to Promote Travel Activities”

The cash output from health tourism is very beneficial for potentially high growth countries, allowing them to upgrade their healthcare systems. In response, government agencies stepped up their involvement in travel and tourism websites for supporting healthcare services.

For example, in February 2018, the Thai government published the requirements for smart visas for entrepreneurs or professionals looking to launch new businesses. International health tourism service providers are finding it easier to grow their businesses in Thailand because of this news.

Several governments and organizations, such as the World Tourism Organization (UNWTO) are actively making efforts for promoting tourism for attracting a diverse range of tourists globally. These actions are contributing to the growth of the worldwide tourist industry. The whole market is driven by the new idea of adventure tourism. Moreover, medical tourism is a relatively new trend in the world travel business.

The global trend of medical tourism is positively impacted by the significant price variations between medical procedures in different countries. Several international athletic events are also driving market prospects. More travelers are drawn to sporting events, such as the ICC World Cup 2011, the London Olympics 2012, and the FIFA World Cup 2014.

“Digital Travel Becoming a New Trend Among More People”

More customers quickly and easily express their thoughts on digital travel and tourism-focused social media platforms, such as Facebook, Yelp, TripAdvisor, and travel websites, which helps hotels and tour operators better understand the requirements and desires of their visitors. By encouraging businesses to focus on quality, these technology tools help them draw in and keep clients while bolstering their credibility through client endorsements.

In addition, it is a reliable source that is going to be consulted while deciding on a certain travel service or item. However, the objective of this movement is better customer service rather than increased revenue for businesses involved in tourism. The outlook for the digital travel sector is shifting as a result, consequently contributing to the overall expansion of the tourism market growth.

Digital travel is becoming popular as the industry thrives on several innovative customer-friendly initiatives that solidify its position in the fiercely competitive travel and hospitality industry. As more tourists choose the digital route to go to their desired tourist locations, the need for digital travel increased in recent years than ever.

Since online travel platforms empowered both customers and hotels, the digital revolution opened several new avenues for travelers who are keen to explore new places and generated a plethora of opportunities in the digital travel sector.

Which Factors are a Major Hindrance in Front of Key Players?

“Higher Costs Associated with Travel a Major Concern for Market Players”

The increase in the cost of research and development operations is one of the primary factors that is hindering market growth and making the tourism industry's expansion even more difficult throughout the projection period. Traveling abroad has several hazards, including the possibility of becoming sick, being robbed, running afoul of the law, and others. In addition, several linguistic hurdles also hinder expansion opportunities, which are adversely affecting the tourism market size.

Country-Wise Analysis

As globalization becomes more evident more people are choosing to travel to several parts of the world to explore and find new possibilities for their business. This is proving to be beneficial for the travel and tourism industry. Some of the major countries contributing to this market include the United States, China, and South Korea. The United States market is forecasted to hold a significant tourism market share in North America.

Why is the United States Escalating on Top Considering Profits in the North American Region?

“More Individuals Getting Attracted Towards Developed Country for Exploring Luxury Lifestyle”

Attribute	United States
Market Value (2024E)	US$ 216.97 Billion
Growth Rate (2024 to 2034)	4.6% CAGR
Projected Value (2034F)	US$ 341 Billion

The United States is capitalizing on its status as a premier travel destination, attracting tourists eager to experience its diverse offerings. Visitors are drawn to luxury experiences, vibrant cities, and natural wonders, all contributing significantly to the country's economy. The United States boasts world-renowned attractions, such as theme parks, national parks, and cultural landmarks, which enhance its appeal.

Moreover, affluent travelers are increasingly seeking personalized experiences, leading to a boom in luxury travel services, fine dining, and exclusive accommodations. The strong infrastructure, coupled with friendly visa policies and stable political conditions, further elevates the United States’ attractiveness.

What is Bringing Market in China to the top in the East Asian Region?

“Chinese Culture and Vast Land Area Enticing Travel Enthusiasts”

Attribute	China
Market Value (2024E)	US$ 121.62 Billion
Growth Rate (2024 to 2034)	6% CAGR
Projected Value (2034F)	US$ 219.22 Billion

China's tourism market is flourishing due to its rich cultural heritage and expansive landscapes, which captivate travel enthusiasts from around the globe. The country's historical sites, such as the Great Wall and the Forbidden City, along with its diverse natural wonders, such as Zhangjiajie and the Karst Mountains, present endless opportunities for exploration.

The emphasis on cultural tourism, bolstered by government initiatives promoting domestic travel, further enhances its appeal. Moreover, the growing interest in experiential travel is drawing visitors seeking authentic encounters with local customs and traditions. As international travel resumes, China's robust transportation infrastructure, including high-speed rail and modern airports, is making it easier for tourists to explore its vast territories.

Category-wise Insights

Several products and services are available in the market for people to explore, some of the popular services available are traveler accommodation, food and beverages, and other retail activities.

Which Products and Services are Highly Desired by Customers in the End Market?

“Travel Accommodations Making Big Profits for Key Players in the End Market”

Attribute	Travel Accommodation
Segment Value (2024E)	US$ 517.61 Billion
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 981.16 Billion

Travel accommodations are highly sought after by more customers, leading to significant profits for key players in the end market. These include hotels, vacation rentals, and boutique lodgings that cater to travelers seeking comfort, convenience, and unique experiences. Customers are increasingly looking for all-inclusive packages that combine lodging with meals, activities, and transportation options, which enhances their overall travel experience.

Moreover, services that provide personalized itineraries, exclusive access to attractions, and local experiences are gaining popularity. The rise of technology also led to a demand for innovative booking platforms and mobile apps that simplify the search and reservation process.

Which Major Market is Generating Huge Profit for Companies Globally?

“Leisure, Recreational, and Holiday Travelers High Profitable Segment Compared to Business Travel”

Attribute	Leisure, Recreation, and Holiday Travelers
Segment Value (2024E)	US$ 1,308.04 Billion
Growth Rate (2024 to 2034)	5.1% CAGR
Projected Value (2034F)	US$ 2,166.84 Billion

The leisure, recreational, and holiday travel sector represent a bullish market for companies in the travel industry, particularly as post-pandemic recovery continues to unfold. Unlike business travel, which has seen slower growth due to the rise of remote work, leisure travel experienced a robust resurgence as more consumers prioritize vacations and personal experiences.

Families and individuals are increasingly seeking getaways, resort stays, and adventure tourism, contributing to a significant uptick in demand for travel-related services and products. This segment is proving to be highly profitable, with travelers willing to spend on unique experiences, luxury accommodations, and curated travel packages.

Business Landscape

Key players in the tourism market are focusing on adjusting themselves to the new tourism market trends to keep themselves forward.

• In August 2022, Hilton Worldwide Holdings Inc. announced plans to expand its public presence in the Caribbean and Latin America. The company plans to open its 200th hotel in the region by the end of 2022. Further, the business signed 15 new development collaborations.
• To bring the total number of projects in its pipeline to 105, or over 15,750 rooms, it announced plans to launch 15 more hotels in the second half of 2022.
  In June 2022, RIU opened its second hotel, the Riu Jambo, in Unguja, Zanzibar's biggest island. It is a four-star hotel that is open around the clock and has 461 rooms.

Fact.MR provides detailed information about the price points of key players in the tourism market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new report.

Key Segments of Tourism Market Research

• By Product & Service :

  • Travel Accommodations
  • Air Transportation
  • Food & Beverage Establishments
  • Other Retail Activities
  • Recreation & Entertainment
  • Gasoline
  • Travel Arrangement & Reservations
  • Other Transport Including Car Rental

• By Major Market :

  • Leisure, Recreation & Holiday Travelers
  • VFR, Health, & Religious Travels
  • Business & Professional Travels

• By Region :

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa