Domestic Tourism Market TOP Segments, Insights And Growth 2025-2034

How has the domestic tourism market evolved, and where is it heading next?

The domestic tourism market size has grown rapidly in recent years. It will grow from $1783.9 $ billion in 2024 to $2071.49 $ billion in 2025 at a compound annual growth rate (CAGR) of 16.1%. The growth in the historic period can be attributed to economic growth, increasing disposable income, rise in middle-class population, growth in travel infrastructure, improved transportation networks.

The domestic tourism market size is expected to see rapid growth in the next few years. It will grow to $3732.67 $ billion in 2029 at a compound annual growth rate (CAGR) of 15.9%. The growth in the forecast period can be attributed to growing interest in experiential travel, advancements in digital booking technologies, increased focus on sustainable tourism, expansion of local travel options, rise in remote work leading to travel flexibility. Major trends in the forecast period include rise in staycations and local getaways, popularity of eco-friendly tourism, use of mobile and AI technology for travel planning, expansion of customized travel packages, emergence of virtual reality in destination experiences.

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What are the key drivers behind the rapid expansion of the domestic tourism market?

The rising popularity of countryside and nature tourism is expected to propel the growth of the domestic tourism market going forward. Countryside and nature tourism involve traveling to rural areas and natural settings to experience and enjoy the tranquility, beauty, and outdoor activities these environments offer. The demand for countryside and nature tourism is growing due to an increasing desire for an escape from urban life, offering peace, relaxation, and a chance to connect with nature. Countryside and nature tourism significantly enhance domestic tourism by attracting visitors to rural areas, thereby spreading economic benefits across regions and reducing the pressure on urban tourist hotspots. For instance, in May 2023, according to a report published by the United Nations World Tourism Organization, a Spain-based specialized agency, in the first quarter of 2023, international tourist arrivals surged to 80% of pre-pandemic levels, with around 235 million travelers, more than doubling compared to the same period in 2022. The tourism sector showed impressive resilience, with revised data for 2022 indicating that over 960 million international tourists traveled abroad last year. This represents a recovery of two-thirds (66%) of pre-pandemic levels, highlighting the industry’s ability to rebound and regain its momentum. Therefore, the rising popularity of countryside and nature tourism is driving the growth of the domestic tourism market.

What is the segmentation for the domestic tourism market?

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.

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Who are the most influential companies 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 are the most influential trends expected to drive the domestic tourism market forward?

Major companies operating in the domestic tourism market are focusing on shifting toward technological advances and innovation, such as AI trip planners, to enhance customer experiences and streamline travel planning. An AI trip planner is a digital tool that uses artificial intelligence to analyze user preferences and travel data to create personalized, efficient, and optimized travel itineraries. For instance, in June 2023, Booking.com, a Netherlands-based online travel agency, launched its AI Trip Planner, a new feature within its app that leverages AI and large language model technology from OpenAI’s ChatGPT API to provide a conversational and personalized travel planning experience. This tool allows users to receive tailored travel recommendations, explore destinations, and book accommodations seamlessly, all through an interactive chat interface.

What are the major regional insights for the domestic tourism market, and which region holds the top position?

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.

What Does The Domestic Tourism Market Report 2025 Offer?

The domestic tourism market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.

Domestic tourism refers to travel within one’s own country for leisure, business, or other purposes. Unlike international tourism, which involves crossing national borders, domestic tourism involves exploring different regions or destinations within the same country. Domestic tourism plays a significant role in promoting regional development and fostering national pride.

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