Outbound Tourism Market Size, Share, Growth, and Industry Analysis, By Type (Holiday, VFR (Visit Friends & Relatives), Business, and Others), By Application (Personal Travel and Group Travel), and Regional Insights and Forecast to 2033

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OUTBOUND TOURISM MARKET OVERVIEW

The global outbound tourism market size stood at approximately USD 8879.2 billion in 2024 and is projected to reach USD 9207.73 billion in 2025, growing Further to USD 12769.1 billion by 2033 at an estimated CAGR of 3.7%.

Outbound tourism can be defined as movement of visitors across the border of their resident country to other countries for leisure, business or any other purpose. This form of tourism has developed rapidly with the increase of disposable cash income for individuals across the globe thus increased international travel. More specifically one can advance the availability of cheap flights, developments in electronic distribution channels and emergence of the large number of online travel agencies. Consequently, destinations serving as sources or generating more demand for tourism include countries that are more economically developed since people desire new tourists’ attractions, leisure, culture, or adventurous activities.

Outbound tourism has factors that influences its prosperity such as; economic conditions, exchange rates or other stability of geopolitics. Over the last few years, people keep diversifying and tourists look for specific locations and things to do in a destination. The pandemic initially affected outbound tourism through restrictions on movement, however, once the restrictions began to ease people travelled more in order to compensate for the lost experiences.

COVID-19 IMPACT

"Outbound Tourism Industry Had a Negative Effect Due to Disruption of Routine Medical Services during COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 affected outbound tourism significantly reducing the overall number of international tourists. Governments across the globe put measures they included limiting movement, isolation, and compulsory quarantines entailing the shutting down of borders, and ceasing of flights. Again, health risks, and safety in travel, and possibly contracting the virus resulted in domestic travel or travelling internationally not at all.

Nevertheless, as the number of people taking vaccines has grown and quarantine measures were gradually being relaxed, the opportunity to restart outbound tourism has emerged, but at the same time it is slowly developing. There were more people traveling bearing in mind the number of cases and safety measures in place in the respective areas. The emergence of ‘travel bubbles’, and compliance with health precautions for the passenger, for example, the obligation to test for a coronavirus and vaccination, contributed to people’s confidence in the restoration of international travel activities.

LATEST TREND

"Sustainable and Eco-Friendly Travel to Drive Market Growth"

There have been notable developments in the market which has the potential to boost the outbound tourism market share. As the people get increasingly concerned about the environment, the demand for travel products that meet sustainable tourism standards increases. This trend consists of selecting environmentally friendly accommodations, carbon neutral flights, as well as environmentally friendly tours. The destinations themselves are also better inclined towards wildlife protection, cultural, and sustainable tourism.

OUTBOUND TOURISM MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Holiday, VFR (Visit Friends & Relatives), Business, and Others.

• Holiday: Holiday tourism pertains to travel activities concerned with pleasure trip, visitation to recreational centers, resort areas and other entertainment places. As a subsector it encompasses resort tourism, beach tourism, cultural tourism, and adventure tourism. Holiday tourism is always characterized by fixed time intervals when the tourism activity is at its highest level, including the summer and the major holidays.

• VFR (Visit Friends & Relatives): The VFR tourism refers to people’s trip for social visit purposes and in most cases, it is for a visit to relatives or friends or to attend certain event like wedding, a reunion or holidays among others. It is usually more private and has less organization than most forms of tourism, its main goal being the chance to spend time with family.

• Business: MICE or business travel refers to all professional travel including conferences, fairs, conventions, business meetings and corporate events. That is why it is combines work with travel, providing meeting new contacts and the opportunity to investigate new markets. Business travelers are sometimes expected to be cost and time efficient when selecting a place to spend the night and get around in.

By Application

Based on application, the global market can be categorized into Personal Travel and Group Travel.

• Personal Travel: Personal travel is the usage of services for tourist purposes other than business like holidays, sightseeing, travel merely for fun, visiting friends and relatives. This type of traveling is independent and not booked by a travel agency or an airplane company. It proves to be more convenient than traveling by other means owing to flexibility of time, place and possibly the doings.

• Group Travel: Group travel is a journey where a group of people, like those with a similar passion, plan and attend a particular destination at one time. It can be large or small and is carried out by travel agencies, clubs or businesses amongst others who organize such exercises.

MARKET DYNAMICS

Driving Factors

"Increased Disposable Income to Boost the Market"

There are several elements inspiring the outbound tourism growth. With developing economies all across the world, and more people having better spending power in their pockets thus more and more are able to engage in international travel. This economic growth pays people to travel for leisure hence increasing the number of people going on outbound tourism. The option of low-cost airlines and improved supply of affordable flights has increased a lot. This has led to more people opting for outbound tourism especially to the distant tourism destinations seeing that the World Tourism rankings.

"Growing Interest in New Experiences to Expand the Market"

Consumers are more interested in finding differentiated forms of tourism, including culturally specific travel, adventurous travel, tourism encompassing nature. This desire for quality exposure and changing experience stimulates the demand for outbound travels to various parts of the world.Moreover, destinations have improved airport, transport networks, and tourism infrastructure eliminating many bottlenecks associated with travels. These improvements have made the travel more enjoyable by making more people affirmed to travelling to other countries.

Restraining Factor

"Geopolitical Issues and Safety Concerns to Potentially Impede Market Growth"

Violations, civil wars, acts of terrorism and natural calamities in preferred tourist –generating countries act as demotivating factors to potential tourists opting to travel to such countries for outbound tourism. Safety issues are a threat and make tourists choose more safe and imperative places, even though WEA and LCC airlines enabled affordable widespread international travel though, it is still costly due to factors such as cost of tickets, accommodation and other expenses like insurance and local transport.

Opportunity

"Growth of Eco-Tourism and Sustainable Travel to Create Opportunity for the Product in the Market"

A larger number of people are looking for vacations that are environmentally friendly, which can include carbon neutral lodging, pro – environmental guided tours, and protected wildlife trips. The rise of the responsibility tourism concept means that travel firms and destinations should understand and design their packages to fit these principals, with ecological tourism being the highest priority. Also, countries that have good environmental conservation policies are expected to experience higher outbound travels due to increased environmental conscious travelers.

Challenge

"Volatile Travel Restrictions and Uncertainty Could Be a Potential Challenge for Consumers"

The environmental factors such as cross-border closure, quarantine measure, and travel ban, are unpredictable; this can hamper demand prediction on the side of the travelers and the tour operators. These inconsistencies in regulations can slow down progress towards the external tourism’s recovery as people feel unsafe to travel internationally for multiple reasons including sudden cancellations. Only when such stability and clarity are provided again in the area of travel policies can confidence in international tourism be regained.

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OUTBOUND TOURISM MARKET REGIONAL INSIGHTS

• North America

North America is the fastest-growing region in this market. The United States outbound tourism market has been growing exponentially owing to multiple reasons. With growth of their disposable income, People in America and Canada have begun travelling to other parts of the world for business, holidays and to visit relatives. One major factor, which has to do with the ease of booking an international trip is through technological especially through the internet and travel applications. Besides, gradually increasing importance of green outbound travel is affecting the outbound travel decisions. However, a few disadvantages are attributed economic factors, and political events that may bring difficulties to the market and subsequently change the pace of international travel.

• Europe

In Europe outbound tourism continues to thrive owing to improved transport facilities and extensive range of accessible low-cost tourism products. The European population has a high level of motility, many options to cross-state and I use the Schengen Area, while short-notice journeys are quite common due to the availability of transport at any time in many nations of the region. This means that cultural tourism and adventure tourism as parts of experiential travel is on the increase. There is also an increased concern with the sustainable tourist because European traveler wants to experience environmentally friendly destinations and means of transport.

• Asia

The Asia-Pacific is one of the most dynamic regions on the global tourism scene with regard to outbound tourism generated by the constantly expanding middle classes with higher disposable incomes, particularly in the PRC, Japan and India. One observes an increasing tendency to travel inwards, especially for tourism and other purposes: there are more people visiting Europe, North America, and other regions of Asia. Technology and especially OTAs and digital interfaces are helping customers plan for their international travel. However, some preconditions like lack of physical constructions in some nations and the traditions of travelling abroad all exert some influence on outbound tourism.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Key industry players are shaping the outbound tourism marketplace through strategic innovation and market expansion. These companies are introducing advanced techniques and processes to improve the quality and performance of their offerings. They are also expanding their product lines to include specialized variations, catering to diverse customer preferences. Additionally, they are leveraging digital platforms to increase market reach and enhance distribution efficiency. By investing in research and development, optimizing supply chain operations, and exploring new regional markets, these players are driving growth and setting trends within the outbound tourism.

List Of Top Outbound Tourism Companies

• Thomas Cook [U.K.]
• DER Touristik [Germany]
• Aida Cruises [Germany]
• FTI [Germany]
• Schauinsland Reisen [Germany]

KEY INDUSTRY DEVELOPMENT

March 2022: AIDA Cruises took significant strives ahead in the outbound tourism marketplace. They recently developed AIDA Cruises' "AIDAcosma" Ship. The ship offers modern comforts accommodation such as dining and entertainment area and wellness, in addition to tourist attractions through itineraries designed to offer travellers full experiences in the Mediterranean and worldwide. The AIDAacosma being truly sustainable LNG (Liquefied Natural Gas) operated is an indicator of the gradual acceptance of environment friendly travel arrangement in the outbound tourism.

REPORT COVERAGE

SWOT analysis is presented in this work at a high level, and helpful recommendations regarding further evolvement of the market are considered. This paper takes an opportunity to review and discuss the market segments and possible applications that have the potential to influence the market growth in the future years. The work uses both, the data regarding the modern state of the market and the information on its evolution to identify the possible development trends.

The outbound tourism with better portability is expected to gain high growth rates due to better consumer adoption trends, increasing application areas, and more innovative product developments. Yet, there might be some problems like, for instance, the shortage of raw materials or higher prices for them However, the growing popularity of specialized offerings and tendencies towards enhancing quality foster the growth of the market. All of them are progressing through technology and innovative strategies in developments as well as in supply chain and market. Due to changes in the market environment and growing demand for variety, the outbound tourism has a promising development since it constantly develops and expands its application.