Outbound Tourism Market by Purpose Type (Business, Holiday/Leisure, VFR & Others) by Tourist Type (Domestic, International) by Tour Type (Independent Traveller, Package Traveller, Tour Group) and Region, Global trends and forecast from 2024 to 2030

Outbound Tourism Market Segmentation Analysis

The global Outbound Tourism market is bifurcated into two segments, by purpose type, tour type and region. By purpose type, the market is divided into business, holiday/leisure, VFR & others. By tour type, the market is bifurcated into Independent traveler, package traveler, tour group and region.

The tourism industry is divided into several segments based on the reasons for travel, such as business travel, vacation or leisure travel, visiting friends and relatives (VFR), and other purposes. People who travel for business purposes, such as conferences, meetings, or corporate events, are said to be engaged in business travel. It is essential to the development of international trade and economic ties. In the VFR segment, people are seen visiting friends and family, highlighting the importance of interpersonal relationships and familial ties as the main reasons people travel. Last but not least, the “others” category includes a variety of varied objectives, such as special interest travel, health tourism, and educational travel. Contrarily, holiday or leisure tourism includes travel for leisure activities like sightseeing and vacations, and it makes a substantial economic and cultural contribution to the tourism sector. The tourism sector can customize its offerings, advertising tactics, and facilities to match the specific requirements of every type of traveler by having a thorough understanding of these purpose-driven markets. Travelers’ preferences and expectations can be better met by stakeholders by acknowledging and addressing the variety of reasons they travel, which will ultimately support the expansion and sustainability of the global tourism industry.

The traveler market is segmented into three main categories based on the type of tour they take: independent travelers, package travelers, and tour groups. Individuals who travel independently organize and carry out their own travel plans, making their own arrangements for lodging, meals, and activities. This group frequently looks for a more flexible and customized travel experience that permits spontaneity and customized exploration. On the other hand, package travelers choose pre-made travel packages that are provided by travel companies or tour operators. Typically, these packages consist of lodging, transportation, and maybe activities or guided tours. Package travelers value the ease and simplicity of having planned most of their trip ahead of time, which often saves time and effort when it comes to preparation. Tour groups consist of tourists who sign up for scheduled group excursions that are run by tour operators or guides. This category places a strong emphasis on interpersonal communication and shared experiences. It offers a planned schedule and frequently incorporates group activities. People looking for a more guided and social travel experience will find tour groups appealing. The logistics are taken care of by experts, so travelers can concentrate on having fun with a like-minded group.

Outbound Tourism Market Dynamics

Driver

Economic prosperity plays a crucial role in driving outbound tourism.

Economic growth is a key factor driving outbound tourism, influencing travel habits as people’s and families’ financial situation improves. People find themselves with more discretionary income as economies grow and incomes rise, which naturally leads to a desire to spend money on vacation and leisure activities. People can now realize their dreams of traveling to new places, experiencing different cultures, and having fun thanks to this change in their financial situation. The way that rising living standards contribute to the democratization of travel is one clear indication of the relationship between economic prosperity and outbound tourism. What was once thought of as an indulgence for a privileged few becomes more widely available and essential to a wider range of people’s lifestyle options. Having more disposable income makes it easier to pay for travel-related costs like airfare, lodging, and meals, as well as enabling more interesting and varied travel experiences. Raising living standards affects travelers’ tastes and expectations in addition to promoting international travel. A move away from traditional vacationing toward a more sophisticated investigation of various cultures and their lifestyles is evident in people’s increased desire for unusual and culturally immersive experiences. When people prioritize their own development and well-being through their travels, their desire for enriching experiences becomes a determining factor in their travel decisions.

Restraint

Rising travel costs, including airfare, accommodation, and other expenses, can act as a deterrent for potential outbound tourists.

Exorbitant airfares are a major obstacle to the outbound travel industry, discouraging prospective visitors and affecting their choice-making. The rise in travel expenses, which include airfare, lodging, and other related costs, can have a substantial effect on how affordable international travel experiences are. The overall increase in travel expenses is a result of economic factors such as inflation and rising operational costs in the travel industry. The rise in airfare is one of the main causes of rising travel expenses. Some segments of the potential outbound tourist market may find it more difficult to afford air travel due to fluctuating fuel prices, airline operating expenses, and other economic factors. The ripple effect also affects the cost of lodging, since hotels and other lodging facilities must modify their rates to cover rising operating costs while preserving profit margins. Apart from travel and accommodation, other travel-related expenses like food, entertainment, and local transportation might also go up. For individuals and families, the cumulative effect of growing costs can make travel financially taxing, which may cause them to reevaluate or postpone their plans. The perception of higher travel costs is further influenced by economic factors that affect the purchasing power of currencies, such as inflation. Traveling abroad becomes less attractive or feasible as living expenses rise and people’s disposable income does not go as far.

Opportunities

The demand for unique and immersive travel experiences continues to grow.

Experience travel is becoming more and more popular, which indicates that customers are choosing more customized and meaningful travel experiences. This is creating a lot of opportunities for the outbound tourism industry. There’s a growing demand for customized, real, and culturally enriching travel experiences as tourists look for more immersive and distinctive experiences than just sightseeing. One of the main chances is to meet this changing demand by providing travelers with specially selected travel experiences that speak to their unique interests and preferences. This could entail creating itineraries that incorporate local tours that offer insights into a destination’s cultural fabric and going beyond popular attractions. Travelers are drawn to experiences that provide a deeper understanding of the places they visit, such as guided walks through historic neighborhoods and hands-on activities with local artisans. Another essential component of experiential travel is culinary adventures. There are many opportunities for businesses to offer culinary experiences, like cooking classes, food tours, and dining at real local restaurants. Travelers prioritize their eating experiences because they want to fully immerse themselves in the local cuisine and stimulate their senses.

Outbound Tourism Market Trends

• The outbound tourism market is still changing as a result of the emergence of digital technology. Social media, smartphone apps, and online booking sites are all essential for trip preparation—from choosing a destination to making hotel and airline reservations.

• Tourists are looking for experiences that are genuine and one-of-a-kind. As an alternative to conventional sightseeing, there is a growing interest in adventure travel, cultural immersion, and off-the-beaten-path locations.

• A growing interest in sustainable and responsible tourism practices is being displayed by tourists as they become more conscious of environmental and social issues. This involves minimizing the carbon footprint of travel, staying in eco-friendly lodging, and engaging in conservation-focused events.

• More flexible travel arrangements are now possible thanks to the growth of remote work. These days, a lot of people mix work and play travel, which has given rise to “leisure” travel trends, which involve extending business trips for leisure travel.

• The market for specialized travel experiences, such as wellness retreats, culinary tourism, and educational travel, is expanding. Tourists are searching for specialized and one-of-a-kind experiences that suit their interests.

• Discovering new places that provide distinct cultural experiences, stunning scenery, and less crowds of tourists than well-known tourist destinations is becoming more and more popular among travelers.

Competitive Landscape

The competitive landscape of the Outbound Tourism market was dynamic, with several prominent companies competing to provide innovative and advanced Outbound Tourism solutions.

1. Akbar Travels
2. Amadeus
3. BCD Travels
4. Booking Holding
5. BTI Sita
6. Cox and Kings
7. Expedia Group
8. Gold Chip
9. In Orbit Tours
10. Kesari
11. MakeMyTrip Limited
12. Mercury Travels
13. Orbit
14. Raj Travels
15. SOTC Kuoni
16. TCI
17. Thomas Cook
18. Travelmart India
19. TUI Group

Recent Developments:

December 5, 2023 — Expedia Group announced today a series of new and expanded travel partnerships across Europe, encompassing B2B technology, advertising partnerships and supply distribution deals, connecting European partners to the company’s extensive global traveller base and giving them access to Expedia Group’s innovative technology and industry expertise.

January 15,2024 – TUI Group continues its strong and strategic growth in Tours & Activities: Its digital platform TUI Musement was selected as the experiences partner by easyJet, one of Europe’s leading airlines.

Regional Analysis

In the market for outbound travel, the Asia-Pacific region was beginning to take center stage. Numerous factors can be attributed to this trend. The middle class is expanding and becoming more affluent as a result of the region’s rapid economic growth, particularly in countries like China and India. This rise in wealth has increased people’s desire to travel and experience the world. Furthermore, the development of efficient transportation infrastructure, which includes larger airline networks and improved connectivity, has made it easier for residents of the Asia-Pacific region to travel outside of their borders.

Particularly in China, outbound tourism has increased dramatically, with millions of Chinese tourists visiting places across the globe. The region’s dominance in the outbound tourism market can be attributed to a number of factors, including the desire for varied experiences, exposure to various cultures, and a growing interest in luxury and immersive travel. The influence of digital platforms that facilitate travel planning and booking, in addition to favorable government policies and initiatives to promote outbound tourism, have further propelled the growth of the Asia-Pacific outbound tourism market.

Target Audience for Outbound Tourism Market

• Business Travelers
• Leisure Travelers
• Adventure Travelers
• Cultural and Heritage Tourists
• Luxury Travelers
• Retirees and Seniors
• Group Travelers

Segments Covered in the Outbound Tourism Market Report

Outbound Tourism Market by Purpose Type

• Business
• Holiday/Leisure
• VFR
• Others

Outbound Tourism Market by Tour Type

• Independent Traveler
• Package Traveler
• Tour Group

Outbound Tourism Market by Tourist Type

• Domestic
• International

Outbound Tourism Market by Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa

Key Question Answered

• What is the expected growth rate of the Outbound Tourism market over the next 7 years?
• Who are the key market participants in Outbound Tourism, and what are their market share?
• What are the end-user industries driving market demand and what is their outlook?
• What are the opportunities for growth in emerging markets such as Asia-Pacific, the Middle East, and Africa?
• How is the economic environment affecting the Outbound Tourism market, including factors such as interest rates, inflation, and exchange rates?
• What is the expected impact of government policies and regulations on the Outbound Tourism market?
• What is the current and forecasted size and growth rate of the global Outbound Tourism market?
• What are the key drivers of growth in the Outbound Tourism market?
• Who are the major players in the market and what is their market share?
• What are the distribution channels and supply chain dynamics in the Outbound Tourism market?
• What are the technological advancements and innovations in the Outbound Tourism market and their impact on product development and growth?
• What are the regulatory considerations and their impact on the market?
• What are the challenges faced by players in the Outbound Tourism market and how are they addressing these challenges?
• What are the opportunities for growth and expansion in the Outbound Tourism market?
• What are the product offerings and specifications of leading players in the market?