Domestic Tourism Market Size, Share & Trends Analysis Report By Tour Type (Adventure, Spiritual/Cultural, Sports, Weekend Getaways), By Tourism Type, By Mode Of Booking, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global domestic tourism market size was valued at USD 1,670.32 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 17.0% from 2023 to 2030. Domestic travel refers to travelling within one's own nation. Domestic tourists would include those tourists to a nearby state. Domestic travel is crucial to the domestic economy since it contributes to local spending. This improves citizens' quality of life and increases the local government's financial resources, which it can use to upgrade the community's facilities and infrastructure. This is particularly crucial in light of how Covid-19 has affected peoples' employment and financial outlooks.

Domestic travel exposes tourists to less-traveled rural areas, which are frequently disregarded by foreign visitors, and assists in addressing seasonality within regions. Due to its expanding middle class and the support of the government, China has been exceptionally effective in promoting domestic tourism, outperforming all other nations in domestic expenditure growth. While China continues to dominate in terms of absolute domestic expenditure growth, many emerging nations have experienced considerable increases in domestic travel and tourism spending as citizens of these nations start to have more disposable income.

With the shutdown of international travel due to border lockdown, there was an increase in surge in domestic tourism specifically in the local areas to relax and have some time to themselves. Additionally, domestic travels eliminates the need to apply for visa and lose the extra time spend in waiting for the approval. Traveling abroad frequently entails additional costs, such as visa and immigration fees, any costs incurred for collecting other required paperwork, long-haul aircraft tickets, hotel stays, tour guides, and the more expensive "foreign visitor" tickets for local attractions.

Also, visiting local places entails to frequent encounters with the local people that results in exploring the actual distinctive character of the place, people, and culture. Furthermore, the visitors gain a lot of knowledge and experience while traveling within their region owing to the familiarity with the culture, and the ability to communicate in native language.

People are able to travel to other states/cities to explore these places and activities owing to the development of tourism industry over the past century. In addition, as a result of the development by the tour operators started to bring various activities and attractive packages which also contributed in the growth of the travel and hospitality industry. In addition to the crucial roles that travel and hotels played in the growth of domestic tourism, advancements in media technology also contributed to the trend.

Tour Type Insights

In terms of revenue, adventure dominated the market with a share of over 33% in 2022. Adventure travel is a form of leisure that involves visiting a strange, exotic, far-off, or remote location. It frequently involves the participant engaging in activity i.e., most of which occurs outdoors. Adventure seekers anticipate varying degrees of risk, thrill, and tranquilly as well as being put to the test individually. They seek out personal challenges and travel remote, exotic corners of the world in particular.

Sports domestic tourism are projected to register a CAGR of 17.6% from 2023 to 2030. Sport events of all sizes and types draw tourists as participants or spectators, and locations work to differentiate themselves and offer genuine local experiences by incorporating local characteristics into them.

Tourism Type Insights

In terms of revenue, local travel segment dominated the market with a share of around 53% in 2022. Local tourism is one of the travel sectors with the highest growth rates globally and the evolving nature of local tourism is becoming more and more evident in many cities. The distinction between visitors and locals becomes hazier as a result of tourists seeking out and consuming more "local experiences," which is made easier by mobile information access.

Interstate travel segment is estimated to grow with fastest CAGR of 17.5% over the forecast period. In the wake of post-Covid unpredictable and stressful travel experiences, millennial travelers demand a safer, more dependable, connected, and comfortable experience. According to an article in Financial Express newspaper, there is a rise in interstate travel demand of 180-200% in 2022 over 2021 underpins the industry's optimism in India.

The travelers is more equipped than ever before to explore within the country, and "work from anywhere" options are also available now since there are no longer any travel limitations and people can work more flexible hours. Additionally, a portion of travelers who are considering about spiritual travel or a visit to their hometown add to the travel resonance.

Mode of Booking Insights

In terms of revenue, the offline segment dominated the market with a share of 55% in 2022. The tour operators provide a wide range of services to the tourists through offline modes, such as customized packages where the customer chooses each component of the tour based on their individual needs, designed standardized tour packages, specialized tourism packages, and full tour guide packages. Small tour companies have established a market niche and maximize their revenues by conducting business offline.

The online segment is estimated to grow with the fastest CAGR of 18.1% over the forecast period. In the travel industry, operating online is becoming more and more common. The ability to operate at a cheap cost and reach a larger target audience makes online transactions more appealing to tour operators. Customers like to transact online these days because there are so many possibilities for them to compare and purchase what they want. Tour companies must adapt to market changes based on customer preferences. Therefore, "online mode" is driving both market forces in the same direction. Online booking has therefore become crucial in the travel sector.

Regional Insights

Europe dominated the market with a share of over 38% in 2022. Some of the most well known cities and nations in the world, with rich histories, varied cultures, and breathtaking natural scenery, can be found in Europe. In 2019, there were 682 million domestic arrivals in European nations, according to Dream Big Travel Far.

Asia Pacific is expected to witness a CAGR of 18.2% from 2023 to 2030. In rising nations, notably in the Asia-Pacific region, the rapid growth of middle class income households has had a considerable impact on domestic travel and tourism. The wide disparity in performance between countries is caused by the tourism industry's various levels of maturity, income levels, the condition of its infrastructure, and the geopolitical and economic environments in each of the countries, even though there is a positive correlation between the growth of GDP per capita and domestic spending.

Key Companies & Market Share Insights

The market is characterized by the presence of a few established players and new entrants. Many big players are increasing their focus on growing trend of domestic tourism. Players in the market are diversifying their service offering in order to maintain market share. Some of the key players operating in global Domestic Tourism Market the market include: -

• Abercrombie & Kent USA LLC

• Expedia Group

• Cox and Kings Ltd.

• Kensington Tours

• Micato Safari

• Scott Dunn Ltd.

• Tauck, Inc.

• Thomas Cook India Ltd.

• La Vacanza Travel

• Butterfield & Robinson

Domestic Tourism Market Report Scope 

Global Domestic Tourism Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the domestic tourism market on the basis of tour type, tourism type, mode of booking, and region.

• Tour Type Outlook (USD Million; 2017 - 2030)

  • Adventure

  • Spiritual/Cultural

  • Sports

  • Weekend getaways

  • Others (business, organized tours)

• Tourism Type Outlook (USD Million; 2017 - 2030)

  • Local travel

  • Interstate travel

• Mode of Booking Outlook (USD Million; 2017 - 2030)

  • Online

  • Offline

• Regional Outlook (Revenue, USD Million; 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

  • South America

    • Brazil

  • Middle East & Africa (MEA)

    • South Africa