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Impact Of Rising International Tourist Arrivals On The Growth Of The Personalized Travel And Experiences Market Emerges as a Core Driver of the Personalized Travel And Experiences Market in 2025
Personalized Travel And Experiences
What Is the Expected CAGR for the Personalized Travel And Experiences Market Through 2025?
The market for bespoke travel and experiences has been expanding swiftly in the past few years. Projected to surge from $144.45 billion in 2024 to $169.33 billion in 2025, it represents a compound annual growth rate (CAGR) of 17.2%. This accelerated growth in the previous period is attributing factors such as the increasing preference for online travel bookings, heightened demand for distinct and exclusive holiday adventures, the surfacing of emerging travel hotspots worldwide, burgeoning disposable earnings among individuals, and a rise in global tourist visits.
What's the Projected Size of the Global Personalized Travel And Experiences Market by 2029?
Expectations have been set for the personalized travel and experiences market to experience significant expansion in the coming years. The projected growth is to be a substantial $317.4 billion in 2029, detailing a compound annual growth rate (CAGR) of 17.0%. The acceleration during the forecast period is likely due to the expansion of loyalty programs, an amplified emphasis on health and safety, heightened interest in experiential travel, social media influence growth, and augmented personalization in the hospitality sector. The forecast period is also anticipated to see major developments, such as the integration of technology, bespoke travel packages, suggestions driven by AI, virtual travel planning, and personalized group travel.
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Top Growth Drivers in the Personalized Travel And Experiences Industry: What's Accelerating the Market?
The growth of the personalized travel and experience market is anticipated to be driven by the increasing number of international tourists. International tourist arrivals refer to the number of foreign visitors who visit a country for leisure, business, or other purposes and stay for at least one night. Enhanced travel accessibility, advancements in technology, and improved transportation options have simplified travel and made it more affordable. These personalized travel experiences, tailored to individual taste and interests, contribute to the increase in international tourist arrivals by creating memorable journeys which inspire tourists to discover new destinations. For instance, the International Trade Administration, a government entity in the US, projected in February 2024 that the total number of international visitors to the United States will surge to 77.7 million in 2024, marking a growth of 10.4 million or 15.4% from the 67.3 million visitors documented in 2023. Consequently, the continuous increase in international tourist arrivals is propelling the personalized travel and experience market.
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What Trends Will Shape the Personalized Travel And Experiences Market Through 2029 and Beyond?
Leading organizations in the personalized travel and experiences industry are leveraging artificial intelligence to create bespoke travel guides, providing tailored travel suggestions and improving customer experience. These AI-driven guides customize travel advice based on the user's unique preferences. For example, SmartGuide, a digital audio guide company based in the Czech Republic, rolled out SmartGuide AI in September 2023. This breakthrough technology turns a traveler's smartphone into a personalized guide, enriching the tourist experience by recommending destinations and activities tailored to personal likes. SmartGuide's AI model scrutinizes content and user activity to generate custom profiles, providing customized suggestions that are displayed on the home screen, within specific locations, and in search outcomes.
What Are the Main Segments in the Personalized Travel And Experiences Market?
The personalized travel and experiencesmarket covered in this report is segmented -
1) By Service Type: In-Flight Personalization, Cruise Lines Personalization, Adventure Travel, In-Hotel Personalization, Other Personalization
2) By Age Group: Millennial, Generation X, Baby Boomers, Other Age Groups
3) By Purpose: Leisure, Business
4) By Mode Of Booking: Online Travel Agency (OTA) Platform, Offline
Subsegments:
1) By In-Flight Personalization: Custom Meal Options, Personalized Entertainment Systems, Seat Customization
2) By Cruise Lines Personalization: Customized Shore Excursions, Personalized Dining Experiences, Cabin Customization
3) By Adventure Travel: Tailored Itineraries, Personalized Adventure Packages, Custom Activity Planning
4) By In-Hotel Personalization: Customized Room Preferences, Personalized Concierge Services, Tailored Amenities and Services
5) By Other Personalization: Travel Itinerary Customization, Local Experience Personalization, Transportation Personalization
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Which Top Companies are Driving Growth in the Personalized Travel And Experiences Market?
Major companies operating in the personalized travel and experiences market are Delta Air Lines Inc., Carnival Corporation, Koninklijke Luchtvaart Maatschappij N.V. (KLM), Expedia Group Inc., Airbnb Inc., easyJet plc, Best Western International Inc., Abercrombie & Kent Ltd., Kensington Tours Ltd., Virgin Hotels Group Limited, EXO Travel Co Ltd., Butterfield & Robinson Inc., Jacada Travel Ltd., Geographic Expeditions Inc. (GeoEx), Authentic Vacations, Black Tomato Ltd., Artisans of Leisure, Classic Journeys LLC, Cox & Kings Limited, Elevation Travel & Tours Inc.
Which Regions Will Dominate the Personalized Travel And Experiences Market Through 2029?
Asia-Pacific was the largest region in the personalized travel and experiences market in 2024. The regions covered in the personalized travel and experiences market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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