Travel and tourism GDP is predicted to grow, on average, at 5.8 percent a year between 2022 and 2032, outpacing the growth of the overall economy at an expected 2.7 percent a year. 5.
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Revenue in the Travel & Tourism market is projected to reach US$854.70bn in 2023. Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 4.42%, resulting in a projected market volume of US$1,016.00bn by 2027.
Key takeaways: Global leisure travel remains robust, up roughly 31% in March 2023 compared to the same period in 2019, representing an impressive 25% year-over-year-to-date change from 2022 to 2023.
49% of Americans Plan To Travel More in 2023This is impressive considering 45% of respondents traveled once or twice in 2022, with 42% traveling three or more times in 2022. All types of trips remain popular for the coming year, though visiting with friends and family leads the list.
Despite the challenges that came with traveling last year, Americans still intend to travel in 2023. A resounding 87% of survey respondents expect to travel at least as much as they did in the prior year, with 49% selecting that they expect to travel more.
A significant reduction in the number of travel agents. According to the U.S. Bureau of Labor Statistics, full-time agents declined from a peak of 124,000 in 2000 to 82,000 in 2019. From 1997 to 2013, retail travel agency headcount fell by 59 percent—from 22,938 to 9,387, said Skift, a travel media and events company.
Moreover, the travel industry's recovery has just begun, even as the global GDP experienced significant growth. This indicates considerable untapped potential in travel across all regions. The report reveals that in 2025, the industry will be around 240 million trips below its full pre-pandemic potential.
In addition to “set-jetting,” there's a renewed emphasis on food-focused travel, wellness and self-care on vacation, and traveling off the beaten path. Surveyed travelers say they want to shop at small businesses and spend more during a vacation if they know it supports the local community.
Indeed, the World Travel & Tourism Council (WTTC) forecasts that the global travel and tourism sector will reach US$9.5 trillion in 2023 — just 5% below 2019 pre-pandemic levels.
Four megatrends are likely to have significant impacts and relevance for tourism: i) evolving visitor demand; ii) sustainable tourism growth; iii) enabling technologies; and iv) travel mobility.
Some of the most important tourism trends impacting customer behavior and influencing the industry are technology-related. Examples include voice recognition technology, contactless payments, artificial intelligence, virtual reality, facial recognition, and the continued rise of the Internet of Things.
Among the respondents, 25% expressed a desire to explore new and unfamiliar places. On the other hand, 23% expressed a preference for visiting places they are already familiar with. In 2024, people are looking to travel to a variety of destinations. Mexico, Canada, and France emerged as the favorites (each with 42%).
In the future, don't be surprised if we see automated baggage handling, AI-powered bag recognition programs, AI security scanning and perhaps even an AI global database that links travelers with their bags – all solutions that could lead to fewer lost bags in the long run.
This worker shortage problem has been building for years but was made worse after the COVID pandemic forced airlines to drastically cut back on their routes and lay off thousands of workers. This prompted many pilots, flight attendants and maintenance workers to take early retirement or leave the industry altogether.
A resounding 87% of survey respondents expect to travel at least as much as they did in the prior year, with 49% selecting that they expect to travel more. This is especially true among younger respondents, with 59% of those between the ages of 18 to 26 planning to travel more in 2023.
In 2022, the average cost was $5,603. In 2023, that price has jumped nearly $1,000; the average cost of a trip this year is $6,587. Unfortunately, this isn't likely to slow down this coming year. In 2024, spending records are expected to be broken in the travel industry.