TRAVEL AND TOURISM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025 - 2032)

Global Travel and Tourism Market and Forecast - 2025-2032

The Global Travel and Tourism Market is estimated to be valued at USD 7,550 Bn in 2025 and is expected to reach USD 12,280 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 8.7% from 2025 to 2032.

Key Takeaways of the Global Travel and Tourism Market

• The leisure travel segment is expected to lead the market holding a share of 39% in 2025.
• The self-catered segment is projected to hold a prominent market share of 53.4% in 2025.
• Europe, expected to hold a share of 37.4% in 2025, dominates the market.
• Asia Pacific is expected to be the fastest growing regional market with a share of 28.5% in 2025.

Market Overview

The significant expansion of the travel and tourism market reflects its robustness and considerable contribution to the global economy. The trend develops due to increasing disposable incomes, shifting consumer preferences, and the gradual resurgence of international travel following the pandemic.

The use of advanced technologies like AI, VR, and contactless services is a major trend in the travel and tourism market. These technologies make travel more personalized and improve the efficiency of operations. Also, travelers are becoming more aware of the environment, which is leading to a big shift toward eco-friendly, sustainable, and ethical tourism practices. The growth of domestic tourism and experiential travel changes the market even more, giving stakeholders new chances to come up with new ideas and meet the needs of a wider range of travelers.

Current Events and Its Impact

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Segmental Insights

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Global Travel and Tourism Market Insights, By Tourism Type – Leisure contributes the highest market share owing to evolving consumer lifestyles and increasing discretionary spending

Leisure tourism is expected to make up 39% of the global travel and tourism market in 2025. More and more individuals are choosing experiencing travel, and the increased focus on work-life balance is a significant reason for this change. In the contemporary fast-paced environment, travelers prioritize their health and value quality time with family.  This is the reason why more individuals seek to undertake journeys that enable them to unwind, enjoy themselves, and explore diverse cultures.  Many individuals who travel aspire to explore new destinations and escape their routine daily lives.  This is the reason why vacations at the seaside, in natural settings, or within urban environments are increasingly gaining popularity.

A key reason for this change is that millennials and Gen Z tourists want more than just ordinary sightseeing; they want actual, individualized experiences.  To meet this desire, tourism companies are introducing fresh, fun, and shareable experiences to their offerings. Some of these are eco-tourism, vacations that focus on gastronomy, and wellness retreats. Also, more people can now afford to go on vacation because their disposable incomes are increasing, especially in developing countries. This has brought in more tourists from every walk of life.

For instance, on November 25, 2025, EasyJet reported a growth in its annual profits despite high prices of travel packages.

Global Travel and Tourism Market Insights, By Travel Mode – Self-Catered Travel Leads Due to Enhanced Flexibility and Personalization Opportunities

The self-catered travel mode is the most popular in the global travel and tourism market and is expected to hold a market share of 53.4% in 2025. This is due to the increasing number of travelers seeking the ability to organize their own trips, thereby gaining greater autonomy and flexibility.  Self-catered travel differs from packaged tours in that it allows individuals to tailor their journeys according to their preferences, desired pace, and budget.  This liberty appeals to experienced travelers, individuals who journey independently, and digital nomads seeking to explore destinations beyond the conventional tourist routes and to gain insights into local cultures.

Increasing number of tourists are choosing to travel on their own because there are more vacation rental businesses and websites where travelers can reserve a place to stay, like short-term apartment rentals and homestays.  These sites enable users pick from more places to stay, usually at lower prices and in more comfortable settings than standard hotels. Travelers have more options, so they can pick a place to stay that meets their needs for comfort, privacy, and authenticity.

Global Travel and Tourism Market Insights, By Booking Mode – Offline Booking Retains Dominance Due to Established Trust and Personalized Services

The offline booking segment is expected to dominate the market with a share of 57% in 2025. Even if the travel sector is becoming more computerized, people all around the world still like to organize trips and vacations in person. This tendency is greatly affected by the trust and personalized services that offline vendors and traditional travel agents provide. When planning complicated trips or excursions with multiple stops, a lot of individuals still prefer to talk to someone in person.  This is mainly because offline channels let people communicate to someone more in-depth and provide peace of mind.

Many individuals can already utilize travel brokers in person in both cities and rural locations.  This includes people who live in areas where the internet is hard to get to or where people do not know how to use it.  Older people are more likely to book offline because they might not be as comfortable with online platforms or think that meeting in person is safer, especially when it comes to big transactions.

Regional Insights

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Europe Travel and Tourism Market Analysis and Trends

Europe is the leader in the global travel and tourism market with an estimated share of 37.4% in 2025. It offers a diverse array of travel opportunities, from exploring historical landmarks to experiencing contemporary urban life.  It also possesses a rich cultural heritage and a well-established tourism infrastructure.  Individuals can readily travel throughout the countries of the region due to the extensive network of airports, railways, and highways.  This facilitates convenient international travel. Policies in the European Union encourage eco-friendly tourism and make it easier for people to get visas through initiatives like the Schengen Agreement. This makes it easy for people to visit other countries. Europe is home to some of the top travel and hospitality firms in the world, such as TUI Group, Lufthansa Group, and AccorHotels. They have a significant impact by developing innovative methods to enhance travel comfort, elevate customer service, and facilitate online booking.  Trade is significant, particularly during periods of economic growth, as it involves a substantial flow of visitors and the two economies are interconnected in numerous ways. Europe is also stronger in the global market because it uses travel technology like online travel agencies and mobile platforms more than other places.

Asia Pacific Travel and Tourism Market Analysis and Trends

Asia Pacific travel and tourism market is expected to exhibit the fastest growth and hold a market share of 28.5% in 2025. This is because the middle class is growing quickly, incomes are rising, and more people are moving to cities. Governments in China, India, Japan, and Southeast Asia are working hard to boost inbound tourism by investing in infrastructure, making it easier to get visas, and running targeted marketing campaigns. More people can travel now that there are more low-cost flights and better transportation networks in the area. This has led to more business and leisure tourism. China Eastern Airlines, Japan Airlines, and OYO Rooms are just a handful of the big companies that have grown their businesses quite swiftly. This has made it easy to get around and find a place to stay. The area's many attractions, from tropical beach resorts to ancient cultural sites, make it an excellent spot for specialized tourism industries including medical tourism, eco-tourism, and adventure tourism.  The digital world here is evolving swiftly. For example, Ctrip and MakeMyTrip are transforming how people plan trips and have fun.

Global Travel and Tourism Market Outlook for Key Countries

U.S. Travel and Tourism Market Analysis and Trends

The U.S. has a wide range of tourist attractions, from natural wonders to city attractions. It gets a lot of assistance from large airport hubs, a well-established domestic airline network, and a strong hospitality industry driven by companies like Delta Air Lines, Marriott International, and Expedia Group.  Many people travel inside and outside of the country because the government spends money on infrastructure and makes it easier to travel via programs like ESTA and Global Entry.  A changing trading environment is also good for the U.S. by making it easier for people to travel for work and cultural reasons. Improvements in travel technology and managing customer experiences have made the country a major player in global tourism.

China Travel and Tourism Market Analysis and Trends

China is still the leader in the Asia Pacific's rapid growth. This is because more and more people are traveling within China and more and more international visitors are coming to see its beautiful natural and cultural sites. The "Belt and Road Initiative" from the government makes it easy for individuals to travel between countries and cooperate together on tourism. Some of the most essential firms for developing services and infrastructure include China Southern Airlines, Trip.com Group, and Hainan Airlines. China's investment in smart tourism, which combines AI and big data applications, also makes travel more personal and helps businesses run more smoothly. China is a key player in both regional and global market growth since more and more Chinese tourists are going abroad.

Germany Travel and Tourism Market Analysis and Trends

Germany is still a key player in Europe's travel and tourism industry because its transportation networks are efficient and its hospitality sector is strong. Berlin, Munich, and the Bavarian Alps are some of the most popular tourist spots in the country. They attract a diverse range of people. Lufthansa Group is a major player, along with regional hotel chains and tour companies that focus on eco-friendly, high-quality tourism. The German government helps tourism by donating money to and promoting cultural events and festivals. Business conferences and trade shows also make business travel more common. Germany's strategic location in Europe also provides it a gateway for tourists from other parts of Europe, which strengthens its dominant position.

India Travel and Tourism Market Analysis and Trends

The Indian market has significant opportunities to grow in the Asia Pacific area, owing to government programs like the Incredible India campaign and making it easier to get an e-visa. Investing in transportation, hotels, and digital platforms is making its tourism industry stronger. IndiGo, MakeMyTrip, and Taj Hotels are just a few of the companies that assist the market flourish by offering a wide range of travel options that show off India's various cultural and natural features. The middle class is rising, and people are also going to other nations for vacation, which changes the landscape. India's spiritual and historical monuments attract niche tourists, while cities like Delhi and Mumbai are popular for both business and leisure travel.

U.K. Travel and Tourism Market Analysis and Trends

The U.K. is still a big part of Europe's travel and tourism market because it has a lot of history that tourists find interesting, it is well-connected to the rest of the world, and it is a financial hub. Many individuals may easily get to and from London by flying into and out of airports like Heathrow and Gatwick. British Airways, InterContinental Hotels Group, and Thomas Cook are some of the biggest corporations that assist the market expand by offering a lot of different services and vacation packages. The U.K. government hopes to bring in more tourists after Brexit by improving visa systems and conducting more marketing abroad. Hosting huge cultural and sporting events that bring in a lot of tourists at specific times of the year is also good for the country. It helps the hospitality business all around the country.

Global Travel and Tourism Market – Consumer Experience and Brand Benchmarking

A modern traveler wants more than just booking a trip and traveling to the destination. Based on recent studies and statistics, there are five main factors that stimulate consumer experience the most. Similar to consumer experience, there are certain factors to determine Brand Benchmarks.

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Global Travel and Tourism Market – Technological Trends and Digital Adoption

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Global Travel and Tourism Market – Regulatory and Policy Scenario

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Market Players, Key Development, and Competitive Intelligence

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Key Developments

• On June 12, 2025, Booking.com announced an 8-year extension of its long-standing partnership with the Etraveli Group. This renewed commitment will help reinforce and speed up Booking.com’s work to create a seamless, scalable global flight platform—now available in 57 countries—and highlights both companies shared goal of bringing travelers and partners around the world greater convenience, options, and value.
• On May 13, 2025, Airbnb officially relaunched Experiences and introduced Airbnb Services for on demand services like chefs and travel facilities.
• On April 29, 2025, Expedia Group announced a groundbreaking partnership with the award-winning travel content agency Beautiful Destinations to transform how travelers discover, plan, and book their trips. By blending Beautiful Destinations’ exceptional skill in producing high-quality, influential travel content with Expedia Group Media Solutions’ E Studio, media buying expertise, and robust data insights, the collaboration expands Expedia Group’s creative capabilities for partners—offering new opportunities to develop shoppable, end-to-end global advertising campaigns.

Top Strategies Followed by Travel and Tourism Market Players

• Large organizations usually focus on scale, being the best at technology, and building integrated ecosystems. They invest resources and time on AI-powered personalization, dynamic pricing, and mobile-first platforms. They also work with more hotels, airlines, and content creators all over the world.  Their plans also include loyalty programs, promises to be environmentally friendly, and all-in-one travel solutions that include planning, booking, and help while on the trip.
  • Lufthansa and Intercontinental Hotel Group are large scale market leaders. On January 18, 2025, Lufthansa Group completed the acquisition of 41% stakes in ITA Airways.

• Medium-sized businesses usually focus on a specialty and being strong in their area, especially on niche markets like wellness, adventure, gourmet, or eco-tourism. They also concentrate on better customer service. These companies also make travel packages that are both competitive and customizable by using flexible booking methods, influencer and content marketing, and business relationships with local suppliers.
  • Kuoni is a major player in this segment. On January 17, 2025, Kuoni announced its acceptance as an affiliate member of UN Tourism.

• Small travel companies focus on being honest, knowing the location well, and providing great service. They often plan to offer unique experiences in the community, have a strong presence on social media, and use good reviews to get new clients. 
  • Major players in this section are Cox & Kings and Interpid Travel. In July 2025, Cox & Kings opened five franchise outlets in Gurgaon, Faridabad, Agra, Ahmedabad, and Dharamsala.

Market Report Scope

Travel and Tourism Market Report Coverage

Market Dynamics

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Global Travel and Tourism Market Driver - Growing Relevance of Educational Tourism

The travel and tourism market has grown a lot because of the growing focus on experiential learning and global exposure. Educational tourism is now a key driver of this market. People all over the world, including students and professionals, are looking for ways to learn more, understand other cultures better, and improve their practical skills through travel that are not in a traditional classroom. Academic exchanges, language immersion programs, study abroad programs, and specialized training tours have become very popular because schools and governments are encouraging people to work together and learn new skills. Also, the growth of online learning platforms and shorter, more focused travel experiences have made more travelers think about the educational parts of their trips when making plans. Parents and students both perceive educational tourism as a method to gain academic credentials and as a terrific opportunity to grow as a person and increase their chances of finding a job. This shift toward travel that focuses on learning produces a constant need for tailored travel services, places to stay, and experiences that immerse you in the culture. This is a key part of how the travel and tourism market as a whole has grown and changed.

For instance, the Association of International Educators (NAFSA) stated that in 2024, 1.1 million international students were hosted by the U.S., who added an estimated 43.8 billion to the economy.

Global Travel and Tourism Market Opportunity – Shifting Trend Towards Experience Driven Niche Travel

The worldwide travel and tourism sector is moving more and more toward experience-based niche travel, which is a tremendous possibility for people who work in the field to thrive. Millennials and Generation Z, in particular, are more interested in unique, individualized experiences than in standard touring. As a result of this tendency, niche travel areas like adventure tourism, eco-tourism, culinary arts tourism, cultural immersion, luxury travel, and wellness retreats have become more popular. These niches help travelers actually get to know a region, making meaningful connections and lasting memories that go beyond the conventional vacation packages. Technology and social media are highly crucial in speeding up this trend since tourists want to share their experiences with others and have them fit with their own values and lifestyles. Also, more individuals may try out these niche products because disposable money is going up in developing countries and it's easier to go to more areas throughout the world. Travel companies and service providers that make their products match these special interests can get more customers, generate more money, and stand out in a crowded market. Governments and tourism boards are also more likely to sponsor specialized tourism projects that help protect cultures and promote sustainable development. This goes along with travelers' growing interest in responsible tourism. Overall, the global travel and tourism industry can tap into changing consumer preferences and find new ways to make money by embracing experience-driven niche travel.

Analyst Opinion (Expert Opinion)

• Majority of travelers across the globe have developed a niche for experience oriented immersive travel plans. This trend has enabled tour operators to come up with better and more customized packages instead of old sight-seeing packages.
• Destinations like luxury resorts, fine dine restaurants, and adventure sports facilities have started investing in influencer marketing as short form video platforms have become key demand generators. Partnerships between social media influencers and travel platforms have become a strategic game-changer in the recent years and is expected to disrupt the market even more.

Market Segmentation

• Tourism Type Insights (Revenue, USD Billion, 2020 - 2032)
  • Leisure
  • Educational
  • Sports
  • Business
  • Medical
  • Others
• Travel Mode Insights (Revenue, USD Billion, 2020 - 2032)
  • Self-Catered
  • Travel Packages
• Booking Mode Insights (Revenue, USD Billion, 2020 - 2032)
  • Offline
  • Online
• Category Insights (Revenue, USD Billion, 2020 - 2032)
  • Luxury
  • Economy
• Traveler Type Insights (Revenue, USD Billion, 2020 - 2032)
  • Solo Travel
  • Group Travel
  • Couple Travel
• Regional Insights (Revenue, USD Billion, 2020 - 2032)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Lufthansa
  • Kuoni Travel
  • Airbnb
  • TUI Group
  • Qatar Airways
  • American Express Global Business Travel
  • British Airways
  • Mariott International
  • Intercontinental Hotel Group
  • Carnival Cruise Corporation
  • United Airlines
  • Amadeus
  • Expedia Group
  • Sabre Corporation
  • Hilton

Sources

Primary Research Interviews

• Hilton
• Tripadvisor
• SaleCycle
• Others

Databases

• Euromonitor International

Magazines

• Skift
• Hotel Management
• Travel Weekly
• Phocuswright Travel Research

Journals

• Journal of Travel Research
• Tourism Management Review
• International Journal of Hospitality Management
• Others

Newspapers

• Travel Trade Gazette
• Travel Market Report
• Hospitality News
• Travel Business Monitor
• Others

Associations

• U.S. Travel Association
• World Travel & Tourism Council
• Adventure Travel Trade Association
• American Hotel & Lodging Association
• Others

Public Domain Sources

• World Tourism Organization (UNWTO)
• U.S. Government Commerce Department
• National Tourism Board reports
• Eurostat
• Others

Proprietary Elements

• CMI Data Analytics Tool, Proprietary CMI Existing Repository of information for last 8 years