Travel Market to Grow by USD 2.86 Trillion (2024-2028), Driven by Rising Demand for Experiential Travel, Report Highlights AI Impact on Trends - Technavio

NEW YORK, Jan. 27, 2025 /PRNewswire/ -- Report on how AI is redefining market landscape - The global travel market size is estimated to grow by USD 2.86 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  11.1%  during the forecast period. Growing popularity of experiential travel is driving market growth, with a trend towards increasing international tourist footfall. However, threat from growing terrorism  poses a challenge. Key market players include 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., G Adventures, JPMorgan Chase and Co., JTB Corp., MakeMyTrip Ltd., Marriott International Inc., Omega World Travel Inc., PT Global Digital Niaga, Traveloka, The Scott Travel Group Ltd., Travel Leaders Group Holdings LLC, World Travel Holdings, and World Travel Inc..

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Market Driver

The online travel market is booming, with domestic tourism due to the pandemic. Acquisition opportunities abound as more people book holidays through mobile apps and online travel agents. New experiences and unexplored destinations are in high demand, especially among elite travelers. Micro trips and short distance travel are popular, but business and overseas travel are also picking up. Political stability and reliable transport are key considerations for travelers. Customized tours, private tours, and luxury tents are attracting baby boomers, Gen X, and millennials. Airlines, cruise liners, hotels, and resorts are adopting IoT for personalized services. The tourism sector is undergoing digital transformation, with governmental support and infrastructural development driving technical integration. Online booking platforms and travel websites are essential resources for planning vacations and leisure activities. Rapid globalization and an interconnected world have increased trade and cultural exchange, while social media networks and influencer marketing influence travel decisions. However, concerns over security, health, and stringent immigration policies remain challenges for the industry. 

Inbound tourism has experienced significant growth worldwide, leading to an increase in the number of tourists and the demand for travel activities. Business travel, both international and domestic, has contributed significantly to this trend. The presence of numerous multinational corporations has boosted the number of corporate visits. Online travel platforms have become increasingly popular as more travelers book trips. Additionally, government initiatives to promote tourism have attracted a larger tourist population. Overall, the travel market is thriving due to these factors. 

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Market Challenges

• The online travel market faces challenges due to the pandemic, leading to a shift towards domestic tourism and micro trips. Acquisition opportunities arise as online travel agents adapt to the new normal, offering personalized services and reliable transport. New experiences in unexplored destinations and luxury travel markets cater to elite travelers. Mobile apps and holiday packages for car rentals, airlines, and cruise liners are popular. Political stability and customized tours in international cities are in demand. Baby boomers, Gen X, and millennials seek new experiences through luxury tents and accommodation facilities. Rapid globalization and technical integration drive the adoption of IoT in travel. Governmental support and infrastructural development are crucial for economic stability. Online booking platforms, travel websites, and influencer marketing boost business. Digital transformation and online resources simplify trip planning, while health and security concerns remain a priority. Foreign tour operators and online platforms adapt to stringent immigration policies and natural disasters. The tourist industry continues to evolve with the interconnected world, trade, and social media networks.
• Terrorist activities have globally since 2016, with the primary goal being to instill fear among the population. For instance, a bombing occurred on January 1, 2023, at a checkpoint near Kabul International Airport in Afghanistan, resulting in injuries and fatalities. This incident, situated just 200 meters from the commercial airport, directly affects industries such as hotels and travel activities. Additionally, heightened border clearance procedures with delays and rigorous inspections add to the travel inconvenience. These occurrences create uncertainty and apprehension, potentially hindering business growth in the travel market.

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Segment Overview 

This travel market report extensively covers market segmentation by  

1. Sector 
• 1.1 Transportation
• 1.2 Hotel
• 1.3 Travel activities
2. Type 
• 2.1 Leisure
• 2.2 Business
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa
4. Tour
5. Age

1.1 Transportation-  The global economy's recovery has led in airline travel, generating increased revenue and taxes for various countries. Tourists now have the freedom to choose preferred destinations and resorts through tourism packages. Collaborations between tourism firms, resorts, and helicopter companies offer customized services. Traditionally, tourists relied on standard offerings from tourism companies. However, with the Internet's widespread use and social media, tourists can research and customize their travel needs, including resort selection and transportation. This trend encourages exploration of off-beat locations and forces tourism companies to adapt. Competition between airlines, especially on popular routes, is driving down prices. These factors are expected to fuel the growth of the transportation segment in the global travel market during the forecast period. Business travelers also leverage transportation for their needs.

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Research Analysis

The online travel market has experienced a significant shift during the pandemic, with an increase in domestic tourism and micro trips. New Year holidays in bookings, and mobile apps have become essential tools for travel planning and booking holiday packages, car rentals, and international city breaks. The acquisition opportunity in the tourism sector is ripe for tech companies, with the adoption of IoT and personalized services becoming key differentiators. Elite travelers continue to seek new experiences in unexplored destinations, despite political instability, natural disasters, and stringent immigration policies. Business and sports travel remain important segments, with flexibility and convenience being key factors for travelers. Overall, the online travel market is evolving to meet the changing needs of travelers, offering new opportunities for growth and innovation.

Market Research Overview

The online travel market has experienced significant growth during the pandemic, with an increase in domestic tourism and micro trips. New Year holidays in bookings through mobile apps and online travel agents. Holiday packages, car rentals, and luxury travel market for elite travelers have also gained popularity. International cities continue to attract tourists, but unexplored destinations and new experiences are becoming increasingly popular. The tourism sector is undergoing digital transformation with the adoption of IoT, technical integration, and online booking platforms. Political stability, reliable transport, and professional interaction are crucial factors for travelers. Customized tours, private tours, and personalized services are in demand. Travelive, baby boomers, Gen X, and millennials all have unique travel preferences. Luxury tents, airlines, cruise liners, hotels and resorts, and accommodation facilities cater to various travel needs. Governmental support, infrastructural development, and economic stability are essential for the growth of the tourist industry. Rapid globalization and the interconnected world have led to an increase in trade, cultural exchange, and social media networks influencing travel decisions. Travel websites, influencer marketing, travel blogs, and user-generated content are essential online resources for travel planning. However, concerns over security, health, political instability, natural disasters, and stringent immigration policies can impact travel decisions. Business, sports, and leisure activities are popular reasons for both domestic and overseas travel. Short and long-distance travel continue to be popular, with flight tickets and trip planning being crucial elements of the travel experience.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Sector
• Transportation
• Hotel
• Travel Activities
• Type
• Leisure
• Business
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa
• Tour
• Age

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio