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Global Tourism Industry Market Definition
Tourism, also defined as travel, is related to the concept of people traveling to other places, domestically or internationally, for recreational, cultural, or professional reasons. It is closely related to the hotel, hospitality, and transportation industries, a large part of which is dedicated to keeping tourists happy, busy, and well-off during their trip away from home. Tourism boosts the economy of a region, creates jobs, improves the region's infrastructure, and increases communication between foreign citizens and their own citizens.
Global Travel and Tourism Market: Key Insights
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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Compound Annual Growth Rate |
~3% |
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Base year market size (2023) |
~ $6 billion |
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Forecasted annual market size (2035) |
~ $9 billion |
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geographic range |
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Global Tourism Market Size, Forecast and Trend Highlights 2023 - 2035
The global travel and tourism market is estimated to garner revenue of approximately USD 6 billion by the end of 2035, growing at a CAGR of approximately 3% during the forecast period (i.e., 2023 to 2035). Moreover, the revenue generated by this market is estimated to be approximately USD 9 billion in 2023. The growth of this market is mainly attributed to the rapid development of the global air transport network, the increasing spending power of people’s travel needs due to the increase in personal disposable income, and the gradual increase in the number of tourists around the world. For example, the total air traffic in May 2022 increased by 85% compared to May 2021. In contrast, the international air traffic increased by 325% compared to May 2021.
Furthermore, people tend to spend more on travel, hence, global tourism market trends such as destination vacations as leisure travel are expected to be hyped during the forecast period. More than 74% of leisure tourists in developed countries such as the United States, United Kingdom, Canada, Japan, and Spain expect to spend more on travel in 2022 than in the previous five years. Furthermore, reduction in travel costs, government efforts to improve railway facilities connecting different places, and growing aviation industry are expected to drive the growth of the tourism and travel market during the forecast period.
Global Tourism Market: Growth Drivers and Challenges
Growth drivers
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Preference for experiential tourism is increasing, especially among millennials – Millennials prefer experiential travel to experience hotels, resorts, culture and luxury. These trips are reasonable for the services provided by the company, including all facilities such as food, accommodation and entertainment. Experiential travel can be carried out in trains, ships, planes or territorial hotels. In 2022, it is expected that the expenditure on experiential tourism will exceed 30% of the 2019 statistics, of which the expenditure on entertainment activities accounts for 33%.
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Increase in per capita income of people in low- and middle-income countries – The increase in per capita income globally has led to people spending more on recreational activities. For example, global GDP growth is expected to be around 3% in 2022.
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Sustainable travel trend grows due to growing concern for the environment - Sustainable travel has become a growing trend as travelers strive to reduce the impact of travel on the environment. In 2021, the number of people exploring sustainable travel options grew by more than 70%.
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With the increase in the number of students studying abroad, socio-economic growth has surged - socio-economic growth is a process that focuses on social power and is completely related to the improvement of cultural levels. Therefore, with the continuous increase in the number of domestic and foreign destinations, the relevance of tourism to socio-economic development and growth is very important. According to data released by the World Bank, in 2019, the number of international tourist arrivals worldwide reached 2.4 billion.
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The trend of low-cost carriers (LCCs) has been escalating as people are more inclined to travel at low cost - LCCs are mainly cheaper compared to traditional airlines. Hence, people are more inclined to travel with these airlines to reduce the cost of travel. The seat share of LCCs on intra-European routes has been increasing throughout 2022 so far. It was close to 52% in the second week of April 2022, compared to 45% in the same week of 2019.
challenge
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Outbreaks of deadly diseases such as swine flu, COVID-19, and Ebola
The rise of infectious diseases such as COVID-19, influenza, and Ebola have adversely affected the world’s healthcare infrastructure. The economic, socio-political, and cultural environment have been equally affected during the COVID-19 pandemic. The occurrence of swine flu resulted in the death of 800 to 1.5 billion people. COVID-19 has resulted in death in more than 10% of the infected cases. Moreover, immigrants have been found to carry most of the infections. Hence, in order to cut off the spread, governments have stopped all modes of travel which has hampered the market growth.
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Increasing natural disasters have devastated people's economic situation
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Global geopolitical tensions rise
The global tourism market is segmented and analyzed by demand and supply by purpose and is classified into adventure tourism, business, medical, conferences or seminars, religious, educational tourism, and others. Among these sub-segments, the medical segment is expected to gain the highest share during the forecast period owing to the improvement and restoration of tourists’ health through cost-effective medical facilities, skilled and experienced professionals, easy access to infrastructure and medical equipment, and better treatment options available in other countries. For example, the Australian government is expected to spend more than $100 billion between 2022 and 2023 to strengthen the country’s healthcare system.
Regional Overview of Global Tourism Industry Market
From a regional perspective, the global tourism market is divided into five major regions, namely North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Among these markets, the European market is expected to account for the largest market share by the end of 2031 due to the increase in disposable income and continuous technological and digital advancements. According to data provided by the European Commission, the use of cloud computing increased to 34% during the epidemic. In addition, by the end of 2021, 66% of densely populated areas will have 5G connections. In addition, the presence of various historical sites in the region is also expected to drive the growth of the market during the forecast period.
market segmentation
Our in-depth analysis of the global travel and tourism market includes the following sections:
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By Type
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By purpose |
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Top Featured Companies Dominating the Global Travel and Tourism Market
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Airbnb
- Company Profile
- Business strategy
- main products
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Developments
- Regional distribution
- SWOT Analysis
- G Adventures
- TUI Group
- Balkan Holidays Ltd
- Accor Group
- Du Vin Bike + Adventure Co.
- Gray Company
- American Express
- Omega World Travel
- World Travel Holdings