Travel & Tourism - North America

  • North America
  • The Travel & Tourism market in North America is expected to witness a significant rise in revenue in the coming years.
  • According to projections, the revenue in this market is expected to reach US$231.20bn by 2024, with an annual growth rate (CAGR 2024-2028) of 2.88%.
  • This growth rate is expected to result in a projected market volume of US$259.00bn by 2028.
  • The Hotels market is expected to be the largest market in this market, with a projected market volume of US$126.90bn in 2024.
  • By 2028, the number of users in this market is expected to reach 237.10m users.
  • The user penetration rate is expected to increase from 59.9% in 2024 to 62.3% by 2028.
  • The average revenue per user (ARPU) is expected to be US$0.76k.
  • The online sales channel is also expected to witness significant growth in the Travel & Tourism market in North AmeriBy 2028, 74% of the total revenue in this market is expected to be generated through online sales.
  • In terms of global comparison, United States is expected to generate the most revenue in this market, with a projected revenue of US$199bn in 2024.
  • The United States is experiencing a rise in eco-tourism, with travelers seeking sustainable and environmentally-friendly options for their vacations.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

 
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Analyst Opinion

In recent years, the Travel & Tourism market has been under a lot of pressure due to the COVID-19 pandemic. Traveling to other countries became impossible because of lockdowns, restrictions, and health risks, affecting people all over the world. Although the market is recovering from this shock, the pandemic has had a long-lasting impact, with new trends emerging from the crisis. First and foremost, because traveling was not possible for a few years, people were able to save more money, which they now wish to spend on vacations and trips. Since the markets reopened, this phenomenon has become known as “revenge travel.” Furthermore, from a business perspective, a similar growth driver is the slow shift back toward in-person events. Many companies are asking their employees to return to the office, and meetings are being held in person again. Therefore, events may be an additional driver in the coming years. However, a general sentiment for the possibility of flexible working has also spread around the globe. In addition to increasing home-office options for employees, the keyword “workation” has been established as a trend. It describes the combination of working and traveling, whereby flexible workplaces allow their employees to travel and simultaneously work from different countries around the world.

The growing awareness of human impact on the environment has resulted in changes when it comes to tourism, in large part due to the younger generation. Sustainability is playing an increasingly important role for tourists, especially when it comes to the mode of travel. Environmental concerns are also shaping the market and encouraging travel companies to make new and alternative offers for more sustainable travel. In addition, regulations such as the carbon tax could potentially influence the way people travel in general. This is particularly the case when it comes to cruises since they cause high emissions. Consequently, a switch to more environmentally friendly propulsion technologies, such as Liquified Natural Gas (LNG), is being made.

On a global scale, the United States has recovered quickly from the pandemic shock, with especially the Hotels market seeing an increase in bookings. The relaxation of China's travel restrictions will promote an increase in Travel & Tourism, particularly in China but also globally for international travels. Europe’s segments exhibit a good recovery rate, although the geopolitical situation in Eastern Europe is inhibiting outbound travel. The current biggest challenges faced by all markets of the Travel & Tourism market are inflation and increased travel costs, which are caused by the most recent world events.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

Overview

  • Revenue
  • Sales Channels
  • Analyst Opinion
  • Users
  • Global Comparison
  • Methodology
  • Key Market Indicators
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