What Fueled The Previous Growth In The Domestic Tourism Market?
The domestic tourism market has seen considerable growth due to a variety of factors.
• The size of the domestic tourism market has seen a swift increase in recent years. It is projected to expand from $1783.9 billion in 2024 to $2071.49 billion in 2025, achieving a compound annual growth rate (CAGR) of 16.1%.
The expansion during the historical period could be related to economic development, higher disposable income, increase in the middle-class population, development in travel infrastructure and betterment of transportation networks.
What Can Be Expected from the Domestic Tourism Market Size?
The domestic tourism market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the domestic tourism market is anticipated to experience significant growth in the coming years. It is predicted to expand to $3732.67 billion by 2029 with a compound annual growth rate (CAGR) of 15.9%.
The upswing during this forecast period can be related to the increasing interest in experiential travel, advancements in digital reservation methods, greater emphasis on sustainable tourism, proliferation of local travel alternatives, and the surge of remote work which encourages flexible travel. Key trends within this forecast period will likely be the increasing preference for staycations and local vacations, the emerging popularity of environmentally friendly tourism, the adoption of mobile and AI technology for travel organization, expansion of bespoke travel packages, and the advent of virtual reality in destination experiences.
What Are the Critical Driver Fuelling The Domestic Tourism Market's Growth?
The increasing interest in rural and natural tourism is anticipated to fuel the expansion of the domestic tourism industry in the future. Rural and natural tourism involves trips to countryside locations and natural spaces with the goal of savoring the serenity, aesthetics, and outdoor pursuits that these settings provide. There is a growing demand for rural and natural tourism due to a rising longing for a break from the hustle and bustle of city life, where tranquility, unwinding, and the opportunity to be one with nature are readily available. This type of tourism significantly boosts domestic tourism as it attracts travelers to the countryside, spreading financial advantages across regions and alleviating stress on busy urban tourist attractions. For example, as per a report released by the United Nations World Tourism Organization, a agency based in Spain, in May 2023, the first quarter of 2023 saw a rise in international tourist arrivals to 80% of pre-pandemic figures, with about 235 million visitors, more than twice as many as the same timeframe in 2022. The tourism industry displayed remarkable resilience, with revised figures for 2022 showing that over 960 million international tourists journeyed abroad during that year. This represents a recovery of two-thirds (66%) from pre-pandemic figures, emphasizing the industry's capacity to bounce back and regain momentum. Consequently, the increased interest in rural and natural tourism is contributing to the expansion of the domestic tourism market.
How Is The Domestic Tourism Market segmented?
The domestic tourismmarket covered in this report is segmented –
1) By Tour Type: Adventure, Spiritual Or Cultural, Sports, Weekend Getaways, Other Tour Types
2) By Tourism Type: Local Travel, Interstate Travel
3) By Mode Of Booking: Online, Offline
4) By Demographics: Young Adults, Adults, Seniors, Families, Groups
5) By Duration: Short-Term, Mid-Term, Long-Term
Subsegments:
1) By Adventure: Trekking And Hiking Tours, Wildlife Safari And Eco-Tourism, Mountain Climbing And Expedition Travel, Water Sports, Camping And Outdoor Exploration, Extreme Sports
2) By Spiritual Or Cultural: Pilgrimage And Religious Tours, Cultural Heritage And Historic Site Visits, Festivals And Traditional Celebrations, Art And Craft Tours, Cultural Immersion Experiences, Yoga And Meditation Retreats
3) By Sports: Football, Cricket, And Other Sporting Event Tours, Adventure And Outdoor Sports, Water Sports, Golf And Polo Tours, Fitness And Training Camps, Motor Sports Events
4) By Weekend Getaways: Short Escapes To Nearby Destinations, Relaxation And Spa Retreats, Nature And Countryside Retreats, Family-Friendly Weekend Trips, Beach And Coastal Weekend Getaways, Luxury And Boutique Hotels For Weekend Stays
5) By Other Tour Types: Gastronomic And Culinary Tours, Educational And Learning Tours, Eco-Tourism And Sustainable Travel, Photography And Nature Tours, Health And Wellness Getaways, Romantic And Honeymoon Packages.
Pre-Book The Domestic Tourism Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What Trends Are Reshaping The Future Of The Domestic Tourism Market?
Leading companies in the domestic tourism industry are aiming to incorporate novel technologies and innovative strategies, such as AI-based trip planners, to improve customer journeys and simplify the process of planning travels. An AI trip planner is an advanced digital tool that leverages artificial intelligence to process user preferences and travel data for crafting personalized, smooth, and perfectly planned travel plans. For instance, Booking.com, an online travel firm based in Netherlands, rolled out its AI Trip Planner in June 2023, a new addition to its mobile application that utilizes AI and large language model technology sourced from OpenAI’s ChatGPT API for providing a customized and interactive travel planning experience. This tool permits users to obtain travel recommendations that caters to their preferences, discover new destinations and seamlessly book accommodations, all through a user-friendly chat interface.
Who Are the Key Players In The Domestic Tourism Market?
Major companies operating in the domestic tourism market are:
• Marriott International Inc.
• Four Seasons Hotels Limited
• Loews Hotels Holding Corporation
• Relais & Châteaux International
• Holiday Hospitality Franchising LLC
• Hilton Worldwide Holdings Inc.
• Hyatt Hotels Corporation
• Radisson Hospitality Inc.
• Accor S.A.
• InterContinental Hotels Group PLC
• Sofitel Hotels & Resorts
• Best Western International Inc.
• Motel 6 Operating L.P.
• Shangri-La International Hotel Management Ltd.
• Omni Hotels Management Corporation
• Red Roof Inns Inc.
• Choice Hotels International Inc.
• Wyndham Hotels & Resorts Inc.
• Extended Stay America Inc.
• Kimpton Hotels & Restaurants LLC
• Sonesta International Hotels Corporation
• Drury Hotels Company LLC
• The Ritz-Carlton Hotel Company L.L.C.
• La Quinta Holdings Inc.
• Fairmont Hotels & Resorts Inc.
What Is The Most Dominant Region In The Domestic Tourism Market?
North America was the largest region in the domestic tourism market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the domestic tourism market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
