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The Global Travel Market size is forecast to increase by USD 3,392.95 billion at a CAGR of 14.18% between 2022 and 2027. The Global Travel Market is experiencing significant growth driven by various factors. The rising preference for experiential travel among consumers, coupled with the expansion of the medical tourism sector, is contributing to market expansion. Additionally, government initiatives promoting tourism are fostering increased travel activities worldwide. These trends collectively underscore the dynamic landscape of the global travel industry, presenting lucrative opportunities for stakeholders across the value chain. This market research and growth report includes an in-depth analysis of market drivers, trends, and challenges during the forecast period.
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The market is experiencing robust growth, propelled by various factors. The rise in experiential travel and the flourishing medical tourism industry, supported by government tourism promotion efforts, are driving international tourist footfall. Additionally, the widespread availability of online travel agencies has revolutionized travel booking, while increasing disposable income among travelers fuels demand across transportation, hotel, and travel activity sectors. This convergence of factors underscores the dynamic expansion of the global travel and tourism industry.
In the transportation segment of the market, various entities contribute to facilitating travel experiences for individuals worldwide. Airlines, tour operators, and travel agencies play integral roles in offering transportation services to both domestic and international destinations. With the advent of online booking platforms, travelers can conveniently plan and book their journeys using smartphones and other digital devices. This accessibility has fueled the growth of low-cost airlines, making leisure and business travel more affordable and accessible. The transportation segment not only caters to domestic travel needs but also supports international economic development by facilitating tourism and business travel between countries. Overall, the transportation sector remains a vital component of the market, providing essential services and contributing to global connectivity and economic growth.
The transportation segment is estimated to witness significant growth during the forecast period. With the improvement in the global economy, there has been simultaneous growth in the airline travel industries of many countries worldwide. Increased revenue and associated taxes are generated as a result of increased passenger traffic, which, in turn, contribute to economic development.
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The transportation segment was the largest segment and was valued at USD 2,191.96 billion in 2017. With the introduction of travel packages such as tourism packages, tourists can opt for preferred destinations and resorts after comparing their prices and offerings. In order to provide tourists with special tourist services, some tourism enterprises cooperate with resorts and privately operated helicopters.
The market is witnessing dynamic growth, fueled by international economic development and the rising trend of experiential travel. The burgeoning medical tourism industry, supported by government tourism promotion efforts, attracts a significant international tourist footfall. Online travel agencies play a pivotal role in facilitating travel arrangements, catering to the disposable income of travelers. With a focus on transportation, hotels, and diverse travel activities, the industry thrives on the seamless integration of airlines, tour operators, and travel agencies. Enabled by online booking platforms and the widespread use of smartphones, travelers enjoy diverse leisure experiences, both domestically and internationally. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing popularity of experiential travel is driving growth in the travel market. More significant and authentic experiences are increasingly sought by modern travelers that allow them to connect with local cultures, traditions, and communities. Experiential travel offers a deeper understanding of a destination's way of life and its people. Younger people prioritize experiences over material possessions, and creating memories and stories to share is something they prefer.
Moreover, travelers are increasingly seeking off-the-beaten-path experiences to avoid the negative impacts of over-tourism. Experience travel enables travelers to make a choice about the journeys they take according to their preferences and interests. Activities like hiking, wildlife safaris, and volunteering can provide immersive and impactful experiences. Such factors are expected to drive the growth of the arket during the forecast period.
The increasing international tourist footfall is a key trend in the travel market. In recent years, the number of inbound tourists in the world is growing rapidly, consequently driving the number of tourists and fueling the demand for travel activities. The rising number of travelers to both the international and national markets, pleasure, and sports trips is a major element in the increase in footfall of tourists.
Moreover, as the number of international travelers grows, so does the demand for travel activities, particularly through online travel service platforms. In addition to corporate travel, there is growing demand in the tourism sector as a result of increased government initiatives aimed at promoting tourism. The growth in the number of international tourist arrivals fuels the growth in demand for travel activities and is expected to drive the growth of the global travel market during the forecast period.
The threat of growing terrorism is a major challenge faced by the travel market. There has been a rise in terrorist activities globally, mainly since 2016. The main motive of terrorism is to create panic among people, which leads to a change in their behavior. Industry such as hotels and travel are directly affected by these terrorist attacks.
However, terrorism further leads to the rise in border clearance issues with delays and tighter inspections, making travel tiresome. In addition, the increasing demand for increased safety around oil and gas pipelines as well as the electricity transmission lines is leading to higher costs. Therefore, the increase in terrorist activities is likely to hamper the growth of the global travel market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Travel Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
American Express Global Business Travel GBT - The company offers travel solutions such as end-to-end solutions for business travelers, including booking, expense management, and travel policy compliance.
The market analysis and report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The rapid economic growth in many APAC countries, such as China, India, and Japan, has led to an expanding middle class with increased disposable income. As people's financial capabilities improve, they have more resources to spend on leisure activities, including travel.
Moreover, urbanization is on the rise in the APAC region, leading to the development of more cities and metropolitan areas. As a result, business trips, conferences, and cultural exchanges can be facilitated. Initiatives such as simplification of visa procedures, the development of tourism infrastructure, and promotion efforts are also part of this. The APAC region has become a significant market for cruise tourism, with various cruise lines offering itineraries that explore coastal cities and islands. Such factors are expected to drive the growth of the global travel market during the forecast period.
The market encompasses various sectors, including the booming medical tourism industry, which attracts travelers seeking healthcare services abroad. Governments promote tourism through various initiatives, and online travel agencies facilitate booking with the disposable income of travelers. Airlines, tour operators, and travel agencies cater to diverse needs, with online booking options and the presence of low-cost carriers. The prevalence of smartphones has transformed the landscape, enabling convenient access to travel websites and information. Responsible and sustainable tourism practices are encouraged, and supported by technologies like augmented reality, virtual reality, and artificial intelligence. Domestically and regionally, transportation services utilize large airports, road, and rail networks, enhancing connectivity and facilitating sustainable tourism practices.
The global travel and tourism industry is significantly influenced by tourism promotion by governments, aiming to boost both domestic travel and regional travel. The emergence of low-cost airlines has made travel more accessible, aligning with responsible tourism practices and ethical and sustainable tourist practices promoted by various stakeholders. Enhanced maritime mobility complements land-based travel, while efficient communication systems ensure connectivity. Governments worldwide are increasingly focusing on sustainable tourism initiatives, encouraging responsible travel behavior and preserving natural resources. As travelers prioritize eco-friendly options, the industry adapts, offering sustainable alternatives. In this dynamic landscape, collaboration between governments, industry players, and travelers fosters a more sustainable and responsible approach to global travel.
The travel market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Travel Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.18% |
Market growth 2023-2027 |
USD 3,392.95 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.02 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, Japan, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accor S.A., American Express Global Business Travel GBT, Balkan Holidays Ltd., BCD Travel Services BV, Booking Holdings Inc., Carlson Inc., Corporate Travel Management Ltd., Expedia Group Inc., Fareportal Inc., Flight Centre Travel Group Ltd., JPMorgan Chase and Co., JTB Corp., MakeMyTrip Ltd., PT Global Digital Niaga, PT Traveloka Indonesia, The Scott Travel Group Ltd., Travel Leaders Group Holdings LLC, World Travel Holdings, World Travel Inc., and Omega World Travel Inc. |
Market dynamics |
Parent market analysis,Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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