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U.S and Canada Travel Market

U.S and Canada Travel Market

U.S and Canada Travel Market Analysis By Type (Luxury Travel, Business Travel, Cruise Travel, Budget Travel and Specialty/Activity/Sports Travel) By Age Group (U.S and Canada Travel for Millennials, Travel Generation X & Baby Boomers) By Country – Global Market Insights 2022 to 2032

U.S and Canada Travel Market
FACT7584MR
  • Aug-2022
  • List of Tables : 6
  • List of Figures : 18
  • 170 Pages
  • Consumer Goods

U.S and Canada Travel Market Outlook (2022-2032)

The U.S and Canada travel market is anticipated to secure US$ 952 Million in 2022 and is likely to exhibit a CAGR of 10.14% from 2022 to 2032. Expansion of the market can be attributed to the growing number of millennial and middle-income traveler groups.

Report Attributes

Details

US and Canada Travel Market 2022

US$ 952 Million

US and Canada Travel Market (2032)

US$ 2,500 Million

CAGR (2022-2032)

 10.14%

Key U.S and Canada Travel Service Providers

  • Expedia, Inc.
  • Booking Holdings Inc.
  • American Express Global Business Travel (GBT)
  • TCS World Travel
  • Abercrombie & Kent USA, LLC
  • Exodus Travels Ltd.
  • BCD Travel
  • Intrepid Travel
  • Topdeck Travel Ltd.
  • Trafalgar

As per the World Tourism Organization, the economic contribution of tourism in 2021 is likely to have garnered US$ 1.9 trillion, against US$ 1.6 trillion in 2020. The growing trend of transformational travel focusing on wellness journeys to rejuvenate the mind, spirit, and body is likely to drive the market positively.

COVID-19 has resulted in various uncertainty ranging from entry rules at global borders, the number of nationals that can be admitted, and under what circumstances, and quarantine or related requirements. However, the industry seems to recuperate.

As per a survey, traveling is the second-most desired activity in the U.S. air travel has hit two million daily passengers, closer to the pre-pandemic level of about 2.5 million than to the low of about 90,000 in April 2020. Hotel bookings and rental-car bookings have increased. Such trends are likely to benefit the industry during the forecast period.

In the United States, the savings rate among Americans is 10 to 20% higher now as compared to the pandemic, and such people are willing to spend their money on travel. Leisure trips are anticipated to lead the industry, with corporate travel securing the second position.

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U.S and Canada Travel Market (2017 to 2021) Vs. Market Outlook (2022 to 2032)

The US and Canada travel market is expected to secure about 952 Million in 2022 while displaying a CAGR of 10.14% during the forecast period. In 2032, the market is anticipated to secure US$ 2.5 Billion. Growing government initiatives to rejuvenate the economy by boosting funds into the system are helping various businesses in introducing new ventures, which will have a positive impact on the market during the forecast period of 2022-2032. From 2017-21, the market displayed a CAGR of 10%.

Canada’s largest tourism source market is the United States which accounts for more than two-thirds of overnight tourists, with 14.7 million tourist arrivals in 2018. As per Statistics Canada, Canada’s national marketing organization recognized a third consecutive record-breaking year with 22.1 million travelers to Canada in 2019.

Amiable relations between the two nations are expected to benefit the US and Canada travel market during the forecast period. In July 2022, Canada Refresh Program was updated, as per which, travelers from America can win one of the passes to the 4000-year-old Parks Canada Discovery.

With one pass, travelers can explore 80 destinations ranging from Glacier National Park om British Columbia to Banff National Park to Jasper National Park in Alberta and several other parks. Attributed to such factors, the market for US and Canada travel is likely to witness various opportunities in the forecast period.

U.S. and canada travel market forecast by Fact.MR

What are the Factors Driving the U.S and Canada Travel Market?

Favorable Initiatives such as App Launch and Exhibitions to boost the Market

An increase in disposable expenditure by consumers in the U.S and Canada is expected to be the key factor driving the market growth during the forecast period. As per a report published by TripAdvisor in May 2021, high-income millennials in the U.S played the most significant role in procuring luxury trips and a majority of them took purpose-driven travels for self-care and relaxation

Further, travel and tourism exhibitions in the USA is another salient factor that is likely to augment the market size during the forecast period. For instance, World Deer Expo 2022 would feature a weekend for people who are fond of outdoor activities. Another such exhibition is Scuba Show 20223, which would feature displays related to areas like marine, adventure, underwater photography, seafood preparation, and marine conservation. Such factors are expected to encourage people to travel, which will eventually benefit the US and Canada travel industry during the forecast period.

Additionally, increasing budget-friendly travel trends among consumers across the U.S and Canada is expected to drive market growth. In August 2021, Elude, a travel discovery, and booking service launched its app that focuses to match open-minded travelers who have a fixed dollar amount in mind with trips that fit both budget and interests.

Launch of other traveling apps, such as the Una Travel App from startup XOKind curates collaborative itineraries for individual travelers and groups majorly based on interests. Another such example is, Out of Office, which allows users to browse travel recommendations from trusted sources and then book them via OpenTable, and the new TPG App from travel website The Points Guy, which aims to enhance the power of users’ accumulates loyalty rewards points.

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What are the Factors Hampering the US and Canada Travel Market?

Political Situation in the U.S to Hamper Market Growth

Factors such as U.S’s withdrawal from Afghanistan and issues between France and the U.S over AUKUS trilateral submarine deal have affected USA’s image as a superpower and has also affected other travel industry. Besides, the number of visas issued by American embassies across Europe has dropped dramatically compared to pre-COVID times.

Other factors affecting the market include travel restrictions due to COVID, allowing only those passengers vaccinated by the US FDA authorized vaccines and others. Owing to such factors, the US and Canada Travel market is expected to suffer significantly during the forecast period.

Region-Wise Insights

What is the Role of the U.S in Driving the US and Canada Travel Market?

Resuming International Travel among Americans to Boost the Market

As per the analysis, the U.S is expected to dominate the market during the forecast period. The U.S is expected to emerge as the largest market in 2022 and accounts for the largest maximum share of about 95%. The country is likely to maintain its position throughout the forecast period.

Further, favorable initiatives by the authorities are expected to benefit the market in the forecast period. For instance, in July 2022, the U.S Travel Association announced the launch of its new Sustainable Travel Coalition, which focuses to align the travel, transportation, and technology sectors in developing strategies to allow a more sustainable future for the U.S travel industry.

What is the Contribution of Canada in Developing the U.S and Canada Market?

Increasing Disposable Income in the Country to Boost the US and Canada Market

In 2014, there were about 1.1 Billion tourism arrivals which increased to 1.46 billion in 2019. The growth of the market can be attributed to the increasing disposable income and the growing desire to go out travel and trek. The increasing desire to travel can be attributed to the growing exposure to social media.

As per Statistics Canada, 2019 was regarded as the best year for Canadian tourism with 22.1 million arrivals, surpassing the 22 million benchmark. The aforementioned factors are likely to positively strengthen the travel market in Canada during the forecast period.

Segmentation Analysis

Which Age Group is expected to lead the U.S and Canada Travel Market?

Millennial Age Group to Lead the US and Canada Travel Market

As per the analysis, the Canada and US market is expected to be dominated by the millennial age group. In 2021, the millennial age group segment is likely to have secured about 51% of the total revenue.

The domination of the segment can be attributed to the value-driven trips and brands that are built on affordability and convenience. Further, growing exposure to social media, increasing focus on self-satisfaction and mind peacefulness, and growing disposable income are other factors contributing to the expansion of the segment during the forecast period. In 2018, millennials in the U.S spent about US$ 200 billion on travel, and the segment is projected to expand in the forecast period.

What is the Contribution of Startups in Developing the U.S and Canada Travel Market?

Airalo, Ditto, Amenitiz, Troop, Yoti, The Hotels Network, Smooss, Blueboard, Port, Hopin, and Butler Hospitality are some of the emerging entities in the US and Canada travel market. Startups are likely to make a significant contribution to the market.

  • For instance, Airalo, which offers digital SIM cards to travelers raised US$ 5.4 Million in Series A funding. The round was initiated by Rakuten Ventures with participation from Antler, Sequoia Capital India's Surge program, LG Technology Ventures, Plug and Play Ventures, Go Ventures, and others. Thus, startups are anticipated to make a notable contribution to boosting the US and Canada travel market.

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Competition Analysis

Key players in the US and Canada travel market include Expedia, Inc., Booking Holdings Inc., American Express Global Business Travel (GBT), TCS World Travel, Abercrombie & Kent USA, LLC, Exodus Travels Ltd., BCD Travel, Intrepid Travel, Topdeck Travel Ltd., and Trafalgar.

  • In April 2021, Expedia launched new features and ad campaigns in anticipation of increased travel. Changes such as a new itinerary experience allow travelers to see all the details of their trip in one place, Plans to simplify the insurance experience, and help travelers discover and experience more of the destination, among others.
  • In November 2021, Booking Holdings Inc. announced that it inked an agreement to acquire Getaroom, a B2B distributor of hotel rooms, from Court Square Capital Partners for about $1.2 billion.

Key Segments Profiled in the US and Canada Travel Market

  • By Type :

    • Luxury Travel
    • Business Travel
    • Cruise Travel
    • Specialty/Activity/Sports Travel
    • Budget Travel
  • By Age Group :

    • Millennials
    • Generation X
    • Baby Boomers
  • By Country :

    • U.S Travel Market
    • Canada Travel Market

- FAQs -

The U.S and Canada travel market is expected to secure US$ 952 Million by 2022.
The U.S and Canada travel market is anticipated to display a CAGR of 10.14% during the forecast period.
Millennials are anticipated to dominate the U.S and Canada travel market, securing about 50% revenue in 2022.
In 2022, the U.S is anticipated to have secured about 95% of the overall revenue.
The U.S and Canada travel market is anticipated to secure about US$ 2.5 Billion during the forecast period.
The luxury segment is anticipated to dominate the US and Canada market during the forecast period. In 2021, the segment is expected to have secured 32% of the global market share.
Expedia, Inc., Booking Holdings Inc., and American Express Global Business Travel (GBT), are some of the eminent players in the US and Canada travel market.

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