New data from Statista Market Insights, presented by Stocklytics.com, reveals that the global travel and tourism industry is robust, healthy and growing.
Predicted to increase 8.3% this year over 2023, the industry is set to gross $927 billion by the end of 2024, and is on track to jump 14% to hit $1.03 trillion in revenue in 2027. Nearly half ($494 billion) of the money will come from hotels, with packaged holidays making up another 30% ($331 billion).
Camping and cruising will be the fastest-growing segments of travel over the coming years, according to the report, and Europe will rank as the world’s largest travel and tourism market (generating $303 billion), followed by China ($223 billion) and the United States ($217 billion), respectively.
Our Analysis: New Travelers Will Be Entering the Market, Creating Opportunities for Travel Advisors
This milestone represents a sharp contrast from the state of the tourism industry jut four years ago, when travel all but halted during the COVID-19-era lockdowns.
Although recovery has been on the upswing, perhaps what’s most impressive about the Statista data is the number of new travelers still coming into the market: Despite sky-high inflation leading to increased travel prices, 200 million more folks will travel this year than prior to the pandemic. And more than 500 million new travelers will enter the market over the next three years, bringing its total number to 2.25 billion.
With the appetite for travel strong and a variety of travel styles ready to be explored, it has never been a better time to be a travel advisor.
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Fast Facts: The Travel Industry Shows No Signs of Slowing Down
– All segments of the travel and tourism industry will see substantial user growth in the next three years.
– More than 2 billion travelers will spend their money on hotels, cruises, vacation rentals and packaged holidays this year.
– Nearly $495 billion is anticipated to be spent on hotels, the market’s largest segment, by 2027.
– The camping market will continue to grow by 7.28% (twice as fast as the hotel industry), and hit $60 billion in revenue by 2027 (up from $48 billion this year). The cruise industry follows with a 5% compound annual growth rate (up to $35 billion in 2027, or $5 billion more than 2024).
– Vacation rental users are set to grow by 63 million to hit 921 million in the next three years. Packaged holidays follow with 580 million users predicted in 2027, an increase from 557 million this year. Camping will see about 90 million new users in this period, and cruises follow with a 4 million increase, up to 32 million users by 2027.