Industry Overview
The global travel and tourism market size was valued at USD 708.2 billion in 2023. It is likely to grow up to USD 957.3 billion by 2030 at a CAGR of 5.6% during the forecast period ranging between 2025 and 2030.
Different factors influence the growth of the market such as the growing demand for customized travel experiences. This is facilitated by the incorporation of advanced technologies such as AI and data analytics which allows businesses to individualize preferences and boost customer satisfaction. This overall boosts the market growth.
Travel and tourism industry is the most dynamic and is powered by sophisticated technology to cater to different purposes for travelling including business, leisure and others. Today, the industry allows for online reservations using different mobile apps and even allow for virtual tours for added convenience. Such facilities not only ease access but also offer significant economic gains such job creation. Popular preferences such as beaches, adventure and cultural destinations allow for local development as well.
Global Travel and Tourism Market Report Coverage
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Report Metric
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Details
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Historical Period
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2018 - 2023
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Base Year Considered
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2024
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Forecast Period
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2025 - 2030
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Market Size in 2024
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U.S.D. 708.2 Billion
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Revenue Forecast in 2030
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U.S.D. 957.3 Billion
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Growth Rate
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5.6%
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Segments Covered in the Report
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Type, Traveler Type, Travel Days, Travel and Booking Mode
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Report Scope
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Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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Regions Covered in the Report
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North America, Europe, Asia Pacific and Rest of the World
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Global Travel and Tourism Market Trends/ Growth Drivers:
Rising Preference for Sustainable Travel Experience
Higher demand for sustainable and eco-friendly travel options propels the growth of the global travel and tourism market. People today are willing to travel to destinations that offer such services that reduce the impact on environment. This includes eco-friendly lodgings, carbon offset plans, and accountable tourism practices, which minimize negative effects on the local communities and environment. Governments also play their part to propel the growth of the market with policies that promote sustainability and green travel.
Advancement in Technologies to Improve Travel Experience
In addition, technological progress and its integration to improve travel experiences, rising health or medical tourism, influence of social media, and rising disposable income among the middle-class in developing countries all promote the growth of this sector.
Global Travel and Tourism Market Challenges
Dealing with Economic Uncertainty
Economic instability is a major challenge to the global travel and tourism marketthat hinder its growth. One such challenge is economic uncertainty due to rising and variable cost of fuel and currency rates causes disruptions in the spending patterns of consumers. They tend to curb their international trips and travel budgets, which affects tourism demand adversely. Managing the effects of these economic shifts which forces business to reduce to modify their pricing policies and reduce cost typically poses significance challenges and hinder market growth.
Global Travel and Tourism Market Opportunities
Prospects in Developing Market
The markets in the developing regions are expanding which is offering novel growth avenues to the global travel and tourism market. The rising disposable income of the middle-income group is these countries offers them a higher scope to spend more on travel. Furthermore, digital access and online convenience in booking offer further opportunities to the market to register more sustained growth.
Recent Developments by the Key Players:
The launch of new 'Airbnb Rooms' feature by Airbnb offers affordable private rooms to guest within homes helping in tapping a larger market and customer base.
Luxury Escapes in Australia has been acquired by Booking Holdings recently. This signifies the intent of the latter to set a strong foot in the global travel and tourism market landscape.
Global Travel and Tourism Market Segmentation
VynZ Research provides an analysis of the key trends in each segment of the global travel and tourism market report, along with forecasts at the regional and country levels from 2025-2030. Our report has categorized the market based on type, traveler type, travel days, travel and booking mode.
Insight by Type
Leisure Travel Dominates due to Rising Disposable Income
By travel type, Business and Leisure Travel are the two categories of global travel and tourism market. Leisure travel leads the market and is expected to dominate it during the projected period due to the rise in middle class population in developing countries and their higher disposable income. The rising preference for bespoke travel experiences also promotes the growth of this segment.
Insight by Traveler Type
Family Travelers segment dominate due to personalized experience
The global travel and tourism market is divided by traveler type into Solo, Family, and Group travelers. Though each of these segments have distinct demands and preference, the family traveler segment is expected to dominate and grow more in the study period due to the rising preference and offerings of personalized travel plans.
Insight by Travel Days
- Short-Term trips
- Long-Term trips
Short-term Trips Lead due to High Demand
Based on the number of travel days or length, the global travel and tourism market is split into Short-Term and Long-Term trips, where the former dominates the market due to higher demand. Travelers, whether it is solo, group or family, prefer a short trip during the weekend or in a week with additional holidays looking for a perfect getaway, boosting the growth of this segment.
Insight by Travel and Booking Mode
- Road
- Air
- Sea
- Rail travel
- Online
- Offline
Rail Travel Dominates due to Greater Convenience
According to the travel and booking mode, the global travel and tourism market is divided into Road, Air, Sea, Rail travel, Online, and Offline segments. Out of all these segments the rail travel segment as well as online booking mode is gaining popularity and is expected to dominate due to affordability, convenience and easy access. While air and road are preferred for long and short trips respectively, rail travel is more comfortable and sustainable alternative. Technological developments further promote convenience through easy online booking.
Global Travel and Tourism Market: Geographic Overview
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Vietnam
- Thailand
- Malaysia
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
North America rules the travel and tourism market due to higher disposable income, growing demand, and a developed infrastructure.
Europe is the major player of the market being a favored destination for travelers looking for eco-friendly and sustainable tourism.
The Asia-Pacific region shows higher growth promises due to rising middle-class population and their increase in disposable income.
Competitive Insights of Global Travel and Tourism Market:
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