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Travel and tourism to become a trillion-dollar industry by 2027

1st Jul 24 1:02 pm

Although it took three years for the global travel and tourism sector to fully recover after COVID-19, the entire market has picked up the pace of solid growth and is on its way to reaching a new massive milestone.

According to data presented by Stocklytics.com, the global travel and tourism industry is expected to gross $927 billion in revenue this year, 8.3% more than in 2023.

This figure will grow by 14% and hit over one trillion dollars in 2027.

Four years after COVID-19 hit, it seems like the travel and tourism sector was never down on its knees, with people worldwide spending billions of dollars on traveling and vacation.

Although inflation has significantly raised the prices of accommodation and tourist services, more than two billion people will spend their money on hotels, cruises, vacation rentals, and package holidays this year, 200 million more than before the pandemic.

With rising prices and the growing number of users, the entire market is expected to gross $927 billion in revenue in 2024, or 8.3% more than last year. Although the annual growth rate will drop to under 4% in the following years, travel and tourism will still hit a new milestone and become a trillion-dollar industry.

According to Statista Market Insights, people worldwide will spend $1.03 trillion on vacation and traveling in 2027, or 14% more than this year. Nearly half of that value, or $494 billion, will come from hotels, the market’s largest segment. Package holidays will make up another 30% of total revenue, or $331 billion. While the two sectors will make up almost 80% of total market revenue in 2027, camping and cruises will remain the fastest-growing segments.

Statista data show the global camping market will continue growing by a CAGR of 7,28%, twice as the hotel industry, and hit $60 billion in revenue by 2027, up from $48 billion this year. The cruise industry follows with a CAGR of 5% and $35 billion in revenue in 2027, or $5 billion more than this year.

In global comparison, Europe will remain the world’s largest travel and tourism market, generating $303 billion, or nearly one-third of total revenue in 2027. China and The United States and follow $223 billion and $217 billion, respectively.

The Statista survey also revealed that all segments of the travel and tourism industry will see substantial user growth in the next three years.  Hotels will reach over 1.36 billion users in 2027, up from 1.26 billion this year.

The number of people using vacation rentals is set to grow by 63 million and hit 921 million in the next three years. Package holidays follow with 580 million users in 2027, up from 557 million this year. Statistics show the camping market will see roughly 90 million new users in this period, pushing the total user count to over 371 million. Cruises follow with a 4 million increase and 32 million users by 2027.

Overall, the travel and tourism market is expected to see more than half a billion new users in the next three years, bringing its total number to 2.25 billion.

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