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U.S. And Canada Travel Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The U.S. and Canada travel products market size was valued at USD 18.7 billion in 2022 and is projected to expand at a CAGR of 4.0% from 2023 to 2030. The market is driven by rising disposable incomes, increased leisure time, and changing attitudes about travel. Moreover, the availability of low-cost travel options, such as budget airlines, has made traveling more accessible to a larger audience. Also, the trend of solo travel has increased among Millennials and Gen Z, which is expected to drive the market in the coming years.
In addition, the growth in the sharing economy has enabled the availability of affordable and convenient travel packages. For instance, in April 2021, Airbnb launched a new ‘Book Differently’ campaign to promote its latest service offering, Airbnb Adventures, a platform for travelers looking for unique experiences. The advent of digital technology has also made it easier for consumers to book travel packages, as well as to compare prices and access reviews of different destinations. Furthermore, the rising trend of experiential tourism is further expected to drive the market. For instance, in January 2021, FareHarbor launched an adventure travel platform, offering unique experiences to travelers in various destinations.
The market is further driven by the increasing popularity of eco-tourism. This has led to the emergence of many eco-tourism destinations and activities. For instance, in August 2021, the U.S. National Park Service announced the launch of two new eco-tourism programs in the Grand Canyon and the Everglades National Park. The programs are focused on providing a safe and enjoyable experience to visitors while protecting the environment.
Furthermore, the growing trend of luxury tourism is anticipated to drive the market. According to a report by The Luxury Institute, luxury travelers are willing to pay more for exclusive experiences, personalized services, and exclusive access. For instance, in November 2021, The Luxury Collection, a brand of Marriott International, launched a new luxury destination in the Caribbean, The Ritz-Carlton, Grand Cayman. Furthermore, the increasing number of tourist attractions and unique experiences provided by various destinations is expected to support the growth of the U.S. and Canada travel products market.
Product Insights
The air travel segment held the largest market share of 48.4% in 2019 due to its affordability and convenience. Air travel has been the most preferred mode of transportation for the past few decades. Air travel is becoming increasingly accessible with the introduction of budget-friendly airlines and the availability of low-cost flight tickets. This has been one of the major factors driving the growth for air travel in both the U.S. and Canada. According to an article published by Statista, air travel accounted for an estimated 95.2 billion U.S. dollars in 2019.
The hotel segment is projected to expand at the fastest CAGR of 7.5% over the forecast period. The growth of this segment can be attributed to the increasing trend of people opting for vacations, business trips, and weekend getaways. The rising disposable income of people and the growing trend of luxury travel are some of the key factors driving the demand for hotels. According to an article published by Travel Pulse, in 2019, U.S. and Canada visitors spent around $7.2 billion on hotel accommodations. In addition, increasing investment in the tourism sector and rising trends of online hotel booking are some of the other factors accelerating the growth of the hotel segment.
Distribution Channel Insights
The travel agency segment held the largest revenue share of 42.7% in 2020. The segment is expected to expand further due to the presence of a large number of travel agencies in the U.S. and Canada. These agencies provide various services such as travel consultation, flight booking, hotel booking, and other services. Moreover, the travel agencies have agreements with different airlines and hotels that allow them to offer discounted prices to their customers. In addition, the travel agencies provide personalized services to their customers that help them to decide the best package for their travel needs.
The online segment is expected to expand at the highest CAGR of 17.7% during the forecast period. The growth of the segment is mainly driven by the rising internet penetration and increasing use of smartphones. Consumers are increasingly turning to online platforms to book their tickets and hotels for their travel. The online segment is further boosted due to the presence of numerous online travel companies such as Expedia, Booking.com, and TripAdvisor. In addition, the online segment offers a variety of services such as flight ticketing, hotel bookings, vacation packages, and car rentals.
Type Insights
The online travel segment in the U.S. and Canada travel products market is expected to account for the largest revenue share of 44.3% in the year 2022. The increasing internet penetration and rise in the number of e-commerce websites have enabled travelers to book tickets and accommodations online. For instance, in April 2022, TripAdvisor Inc., a travel website, introduced a new feature called ‘Book with Confidence’ that allows customers to book flights and accommodations with assurance of cancellation. Moreover, the increasing trend of booking flights and accommodations through mobile applications is also driving the growth of the online travel segment.
The offline travel segment is estimated to expand at the highest CAGR of 6.1% over the forecast period. The increasing trend of personalized customer services has resulted in the growth of the offline segment. Moreover, the presence of a large number of travel agents in the U.S. and Canada is increasing the demand for offline travel products. For instance, in April 2022, Expedia Inc., an online travel agency, launched ‘Expedia Local Expert’, a feature that enables customers to book services from local travel agents.
Regional Insights
The online travel segment in the U.S. and Canada travel products market is expected to account for the largest revenue share of 44.3% in the year 2022. The increasing internet penetration and rise in the number of e-commerce websites have enabled travelers to book tickets and accommodations online. For instance, in April 2022, TripAdvisor Inc., a travel website, introduced a new feature called ‘Book with Confidence’ that allows customers to book flights and accommodations with assurance of cancellation. Moreover, the increasing trend of booking flights and accommodations through mobile applications is also driving the growth of the online travel segment.
The offline travel segment is estimated to expand at the highest CAGR of 6.1% over the forecast period. The increasing trend of personalized customer services has resulted in the growth of the offline segment. Moreover, the presence of a large number of travel agents in the U.S. and Canada is increasing the demand for offline travel products. For instance, in April 2022, Expedia Inc., an online travel agency, launched ‘Expedia Local Expert’, a feature that enables customers to book services from local travel agents.
Regional Insights
The U.S. and Canada region accounted for the largest market share in 2022, with a revenue of USD 23 billion. This is primarily due to the presence of a large number of travel destinations, such as the Grand Canyon, Niagara Falls, and the Rocky Mountains, which have been attracting a large number of travelers from across the world. Additionally, the presence of a large number of travel agents, tour operators, and other travel-related services in the region is further expected to fuel the growth of the market. For instance, in 2021, ABTA, a leading trade association for the travel industry in the U.S., launched a new travel app with features such as booking, planning, and tracking.
Canada is expected to witness the fastest growth in the coming years. This is attributed to the presence of a large number of travel-associated activities that are popular among international tourists. Furthermore, the presence of a large number of online travel services, such as Airbnb and Expedia, is expected to drive the growth of the market. For instance, in 2021, Expedia Group launched a new local-language booking platform in Canada.
Financial Projections
In this part of the US and Canada travel products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your travel products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a travel products business comes from sales of flight tickets, hotel bookings, car rentals, travel packages, and other related services. Here you will find a list with a description of each of them and other possible sources of profit such as commission from travel agencies, discounts and promos, loyalty programs, and affiliate marketing.
Projecting Expenses
In this section, all the regular expenses related to keeping the travel products business running will be described. The list of operating expenses includes staff costs, product research and development, software, advertising and marketing, insurance policies, taxes and other related fees.
Key companies & market share insights
Some of the key companies operating in the U.S. and Canada travel market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In April 2022, Expedia Inc. launched the ‘Expedia+’ loyalty program, which offers customers exclusive discounts and rewards when booking flights, hotels, and car rentals.
– In June 2022, Travelocity launched the ‘My Trips’ app, which allows customers to view their itineraries, book flights, and manage their reservations.
– In August 2022, Air Canada launched the ‘Breeze’ frequent flyer program, which offers exclusive discounts and rewards to regular travelers.
Some of the prominent players in the U.S. and Canada travel market include:
– Expedia Inc.
– Travelocity
– Priceline Group
– Air Canada
– WestJet Airlines Ltd.
– American Airlines
– Southwest Airlines
– Delta Air Lines
– United Airlines
– JetBlue Airways Corporation
Global U.S. And Canada Travel Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the U.S. and Canada travel products market based on product type, distribution channel, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Airline Tickets
– Hotel Bookings
– Package Tours
– Car Rental
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Online
– Offline
3. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– United States
– Canada
Frequently Asked Questions
[Q]: What are the key trends driving the U.S. and Canada travel products market?
[A]: Growing tourism activities, changing travel preferences, and increasing disposable incomes are driving the U.S. and Canada travel products market. The adoption of digital travel tools is also expected to drive the market.
[Q]: Who are the major players in the U.S. and Canada travel products market?
[A]: Major players in the U.S. and Canada travel products market include Expedia, Inc., American Airlines Group, Inc., G Adventures, Intrepid Travel, and Thomas Cook Group plc.
[Q]: What are the growth opportunities in the U.S. and Canada travel products market?
[A]: The growth opportunities in the U.S. and Canada travel products market include the growing popularity of online booking platforms, increasing demand for eco-tourism, and increasing demand for luxury travel experiences.
[Q]: What is the potential of product innovation in the U.S. and Canada travel products market?
[A]: Product innovation is a key factor driving the U.S. and Canada travel products market. Companies are introducing new travel products to meet the changing needs of travelers.
[Q]: Which region offers the largest opportunity for sales of U.S. and Canada travel products?
[A]: The U.S. and Canada travel products market is expected to be lucrative in North America with an absolute dollar opportunity of $25 B (USD).
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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