The coronavirus (COVID-19) pandemic resulted in significant disruptions in the tourism industry. Travel plans were put on hold as flights were cancelled or suspended and the hotel industry was forced to downsize their operations. As a result, the market size of the tourism sector in the United States fell to 609.48 billion U.S. dollars in 2020 compared to the previous year's total of nearly 1.2 trillion U.S. dollars. The sector was forecast to reach 957.42 billion in 2022.

The size of the United States and Canada educational tourism market was USD 34.5 billion in 2025 and is anticipated to grow at a 12.9% CAGR during the period 2025 to 2035.

Country-wise analysis

Competitive Outlook

Market Size statistics on the Tourism industry in United States

The number of employees in the tourism sector in the United States was approximately 4.52 million in 2021, up from the previous year's total of 3.88 million. In 2022, employment in this sector was forecast to increase to 5.11 million. The number of businesses in this sector also increased in 2021.

The United States sustainable tourism sector is likely to see steady growth throughout the forecast period 2025-2035. Keeping this fact in mind, the market is anticipated to be worth almost USD 761.3 Million by 2035 with a compound annual growth rate (CAGR) of 9.3% over the forecast period as travellers become more aware of their environmental impact, destinations all over the USA are making efforts to minimize carbon footprints, sustain local economies, and adopt sustainable tourism action plans.

Region-wise Outlook

Competitive Outlook

In 2023, the travel and tourism sector in the United States contributed approximately 2.36 trillion U.S. dollars to gross domestic product (GDP). This figure saw growth over the pre-pandemic levels of 2019 when the travel and tourism sector contributed 2.27 trillion U.S. dollars to the North American country's economy.

Global Tourism Market size was worth around $11.39 trillion in 2023 and is predicted to grow to around $18.44 trillion by 2032 with a CAGR of 5.5%.

Demand for sports tourism in the United States is expected to grow at a rapid 13.9% CAGR between 2023 and 2033. The amount of sports tourism in the United States is estimated to be USD 50.42 billion in 2023, with a projected increase to USD 185.317 billion by 2033.

The United States Sports Tourism Market (From 2018 to 2022)

The United States Sports Tourism Market (From 2023 to 2033)

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Cultural Tourism Market Size 2025-2029

The cultural tourism market size is forecast to increase by USD 8.41 billion at a CAGR of 18.4% between 2024 and 2029.

The market experiences significant growth, fueled by increasing instances of stress-related cases driving a desire for immersive experiences. This trend is further amplified by the rising demand for advanced technologies such as Augmented Reality (AR) and Virtual Reality (VR) in cultural tourism, enabling visitors to engage with historical sites and artifacts in innovative ways. However, market expansion is not without challenges. Regulatory hurdles impact adoption, particularly in preserving cultural heritage sites while integrating technology.
Furthermore, concerns related to overtourism and its negative impact on local communities necessitate sustainable tourism practices and collaborative efforts between governments, tourism industries, and local residents. Companies seeking to capitalize on market opportunities must navigate these challenges effectively, focusing on innovation, sustainability, and community engagement.

What will be the Size of the Cultural Tourism Market during the forecast period?

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In the global market scenario of cultural tourism, off-the-beaten-path destinations are gaining popularity among travelers seeking unique experiences. Customer preferences lean towards sustainable travel practices, such as eco-tourism initiatives and interacting with local communities. Festivals and regional customs provide authentic cultural experiences, while art galleries and museums showcase the international community's rich heritage. Sustainable travel practices, including eco-friendly accommodations like vacation rentals and camping, are on the rise. Affordability is a key factor, with package holidays offering cost-effective solutions. Social media plays a significant role in promoting these experiences, allowing travelers to share their adventures with a wider audience.
Middle-class consumers are increasingly seeking experiential travel opportunities, such as food tours and cooking classes. Wilderness travel and historic sites also attract tourists, providing a balance between adventure and cultural immersion. The employment opportunities generated by cultural tourism contribute to the local economy, making it a win-win situation for both travelers and host communities. Culinary tourism, a niche segment of cultural tourism, offers a diverse range of experiences, from classic journeys to Aracari Travel's unique offerings. Cultural tourism continues to evolve, with a focus on providing memorable experiences that resonate with travelers long after their vacation ends.

How is this Cultural Tourism Industry segmented?

The cultural tourism industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Domestic cultural tourism
  International cultural tourism


Service

  Cultural eco-tourism
  Indigenous cultural tourism
  Socio-cultural tourism


Application

  Leisure
  Religious pilgrimage
  Education
  Research


Traveler Type

  Solo Travelers
  Group Travelers
  Families


Geography

  North America

    US


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The domestic cultural tourism segment is estimated to witness significant growth during the forecast period.

In the dynamic the market, locals' interactions and authentic experiences are at the forefront, fueled by the tourism industry sector's evolution. Museums serve as significant cultural attractions, showcasing rich histories and diverse customs. Technological advancements, including mobile applications and virtual reality (VR) and augmented reality (AR) technologies, play a pivotal role. These tools offer travelers access to comprehensive guides, immersive experiences, and historical reenactments, enhancing engagement and enjoyment. Culinary tourism and conservation efforts are driving forces, with food tours and cooking classes offering unique experiences. Regional customs and traditions are celebrated through various exhibitions and bookings, catering to customer preferences.

Wilderness travel and festival tourism provide off-the-beaten-path experiences, while eco-friendly travel practices and sustainable initiatives ensure minimal impact on the environment. The middle class's growing affluence and diversity appreciation have led to a surge in demand for cultural tourism. Employment opportunities in this sector are on the rise, with hotels, B2C enterprises, and eco-tourism initiatives contributing significantly. Travel restrictions and social isolation polic

As per the latest findings of Future Market Insights, the USA and Canada tourism revenue is expected to be US$ 172,331.2 Million by the end of 2023. In the long-term, the market is estimated to reach at a valuation of around US$ 253,839.3 Million in 2033.

Scope of Report

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Metaverse Market in Travel and Tourism Market Size 2024-2028

The metaverse market in travel and tourism market size is forecast to increase by USD 155.17 billion at a CAGR of 26.76% between 2023 and 2028. In the dynamic realm of technology, the metaverse market in travel and tourism is experiencing significant growth. Key drivers include the surging demand for great technologies such as Augmented Reality (AR) and Virtual Reality (VR), which offer unprecedented experiential opportunities for travelers. Furthermore, the metaverse's application in travel and tourism is on the rise, with developments in this sector revolutionizing the way we explore and experience destinations. However, this burgeoning market is not without challenges. High development costs associated with AR and VR applications pose a significant barrier to entry for many players. Despite these hurdles, the metaverse's potential to transform travel and tourism is undeniable, making it an exciting and innovative space to watch.

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The market in the Travel and Tourism industry is experiencing significant advancements with the integration of Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) technologies. Metaverse devices such as VR headsets, MR headsets, smart glasses, and smart helmets are transforming the gaming experience for tourists, offering tailored metaverses and digital twins for great exploration. Investments in the Metaverse sector are on the rise, driven by the potential for additional revenue and deployable use cases in the travel industry. The medical sector is also exploring the benefits of Metaverse technology for training and simulation purposes. Advancements in 3D modeling and the use of Unreal Engine are enhancing the realism and interactivity of Metaverse experiences.

However, challenges such as eye strain, dizziness, nausea, myopia, low resolution, and virtual sickness remain concerns for users. Electromagnetic frequency emissions from Metaverse devices are another issue that requires attention. As the Metaverse market continues to evolve, timelines for human resource development and business performance optimization will be crucial for success. Blockchain technology is expected to play a role in securing transactions and ensuring data privacy in the Metaverse travel and tourism market. Overall, the Metaverse market holds immense potential for innovation and growth in the travel industry.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  AR
  MR
  Blockchain
  XR
  VR


Component

  Hardware
  Software
  Services


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK


  APAC

    China


  South America



  Middle East and Africa

By Application Insights

The AR segment is estimated to witness significant growth during the forecast period. The metaverse market in travel and tourism is experiencing significant advancements with the integration of Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) technologies. According to industry estimates, this sector is expected to witness substantial growth, driven by the adoption of HMDs (Head-Mounted Displays) such as VR headsets, MR headsets, smart glasses, and smart helmets. These technologies offer tailored metaverses for travelers, providing great gaming experiences and personalized explorations. Investments in the metaverse market are on the rise, with developments in the medical sector showcasing digital twins, blockchain, artificial intelligence (AI), and machine learning (ML) for healthcare providers.

Furthermore, advancements in programming and cybersecurity concerns are being addressed to ensure negligence and oversight are minimized. AR and VR technologies are revolutionizing traveler experiences by enabling real-time navigation and information, simplifying exploration in unfamiliar locales. The convergence of these technologies with AI and ML offers personalized experiences, enhancing traveler engagement. However, concerns regarding health effects, cybersecurity, regulations, defined standards, taxation, and experiential training are being addressed to ensure a seamless and safe user experience. For instance, preflight checks, integration, weapon training, and flight training simulations are being developed to ensure safety and efficiency in various sectors. In summary, the metaverse market in travel and tourism is undergoing significant advancements, driven by the adoption of AR, VR, and MR technologies, investments, and tailored metaverses. Addressing concerns regarding health effects, cybersecurity, regulations, and defined standards is crucial for the continued growth and success of this s

Tour operators in the United States have experienced a substantial boost, mainly driven by domestic travel preferences and a growing demand for personalized experiences. Annual travel spending in the US has reached a staggering $1 trillion, with 63.0% of trips remaining within national borders. This surge in domestic travel, fueled by the so-called "revenge travel" phenomenon post-pandemic, has significantly contributed to the swift recovery of the tourism sector. The sector's growing emphasis on diverse attractions, from pristine national parks to vibrant cultural events in cities like Las Vegas and New York, underscores tour operators' commitment to offering unique experiences tailored to evolving tourist preferences. Still, profit has not reached pre-pandemic levels, thanks to higher cost pressures. Revenue has expanded at a CAGR of 20.6% to $12.3 billion over the years to 2025, including a climb of 4.0% in 2025 alone. In the past few years, tour operators have navigated several transformations and challenges, prompting operators to recalibrate domestic tourism. This pivot inspired innovations in travel packages aiming at personalization and exclusivity. Operators seized opportunities to cater to niche markets, like those seeking luxurious private tours or exploring healthcare tourism. Diverse landscapes and vibrant cultures in the US have remained a constant draw, while events like the total solar eclipse demonstrated the substantial economic impact of strategically leveraging extraordinary phenomena. Digital platforms such as Viator and GetYourGuide emerged as vital tools, reshaping traditional business models by broadening reach and appealing to tech-savvy travelers. In the next few years, tour operators are poised to adapt to shifting market dynamics, capitalizing on emerging destinations, health and wellness tourism and sustainable travel trends. The imminent 2025 FIFA Club World Cup will draw global audiences, presenting ample opportunities for operators. Growth in wellness tourism highlights consumer interest in travel to enhance mental health and well-being. Meanwhile, the rise of medical tourism underscores the need for specialized travel packages. Climate change will compel operators to pivot towards more sustainable practices, fueling demand for eco-friendly travel options. As tour operators cater to eco-conscious travelers, they will also ensure resilience in an unpredictable future. Revenue growth is expected to progress at a CAGR of 3.2% to $14.4 billion over the years to 2030.

In 2023, the travel and tourism industry in the United States contributed roughly 18.03 million jobs to the U.S. economy. This figure saw growth over the pre-pandemic levels of 2019 when the travel and tourism sector contributed around 17.4 million jobs to the North American country's economy.

Tourism Revenues in the United States decreased to 20072 USD Million in March from 21421 USD Million in February of 2025. This dataset provides - United States Tourism Revenues- actual values, historical data, forecast, chart, statistics, economic calendar and news.

The Global Tourism industry experienced a tumultuous journey over the five years to 2025. The industry began to slowly recover in 2021 before surging in 2022 and 2023 as pent-up demand for travel drove robust industry performance. The industry has performed well despite recent inflation and economic uncertainty. However, the tariff war between the US and other countries has further increased uncertainty among businesses and leisure travelers, weighing on industry demand. Overall, industry revenue is anticipated to rise at a CAGR of 13.8% to reach $1.5 trillion in 2025, including an expected 1.7% rise in 2025 alone. This substantial growth is the product of a low pandemic year. In the same year, profit is expected to reach 9.7% of revenue. The industry is highly fragmented and comprises large conglomerates and small, local enterprises operating in an increasingly competitive setting. Conglomerates that provide the world market with transport, accommodation, entertainment, and travel arrangement services are at the forefront of the industry. Some of these large operators' annual revenue totals billions of dollars, which supports the industry. Global tourism revenue will increase at a CAGR of 2.0% to $1.6 trillion over the five years to 2030. Rising per capita income growth and consumer sentiment will boost global tourism. The desire for travel will likely remain strong, given the fact that airlines are trimming ancillary services to focus on budget-conscious customers. Travel booking, personalization, and sustainability innovations will likely attract new segments and enhance experiences. However, challenges like economic uncertainty and geopolitical instability may persist. Operators adapting to changing trends and addressing challenges will likely outperform others.

The number of businesses in the tourism sector in the United States was 401.09 thousand in 2021, down from the previous year's total of 361.53 thousand. In 2022, the number of businesses in this sector was forecast to reach 435.15 thousand.

Over the past five years to 2023, the Tourism industry has faced volatile demand amid uneven economic conditions. The major sources of industry revenue include traveler accommodations, transportation, food and beverage services and recreation, entertainment and shopping. These areas are all highly influenced by consumer spending trends. Over most of the past five years, travel spending has increased in line with the overall healthy economy and rising per capita disposable income levels, benefiting tourism providers. However, the spread of COVID-19 in 2020, along with the associated economic downturn, resulted in an unprecedented 50.7% revenue decline in 2020. Overall, revenue has declined at a CAGR of 1.6% to $1.2 trillion over the past five years. This contraction includes an anticipated increase of 4.3% in 2023.The industry was devastated by the spread of the coronavirus in 2020, with both industry revenue and profit declining at unprecedented levels. Industry offerings are substantial and significantly varied, ranging from accommodation services to travel to amusement parks and campsites. However, almost all major industry offerings require some form of in-person interaction. Such activities and services suffered from the greatest setbacks amid pandemic travel restrictions. Many of these participating industries face high fixed costs. Significant revenue shocks have led the average industry profit margin, measured as earnings before interest and taxes, to decline over the past five years, reaching 9.6% of revenue in 2023, down from 14.0% in 2018.Over the next five years to 2028, the industry is anticipated to continue to recover from setbacks incurred amid the coronavirus pandemic. Over the next five years, as consumers across the globe return to work, disposable income levels are forecast to rise, enabling increased spending on tourism. Resulting from better financial security, consumer confidence is anticipated to gradually return, and tourism activity is forecast to rise. Traveling in the United States will become relatively more affordable for international visitors. Revenue is projected to grow at a CAGR of 2.6% to $1.4 trillion over the next five years.

GlobalData’s "Tourism Source Market Insights: United States of America", provides a thorough insight into the US's domestic and outbound tourism industry. The report shades light into the profiles of US tourists and summarizes the key reasons why Americans travel. The report offers an in-depth analysis of traveler flows, spending patterns, main destination markets and current and future opportunities for tourism businesses seeking to tap into the US outbound travel market. Read More

Wine Tourism Market size is expected to be worth around USD 160.7 billion by 2033, from USD 46.5 billion in 2023, growing at a CAGR of 13.2%.

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Travel Technologies Market Size 2025-2029

The travel technologies market size is forecast to increase by USD 6.29 billion at a CAGR of 9.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing use of smartphones and mobile applications for booking and managing travel arrangements. This trend is particularly prominent in North America, where mobile devices have become an essential tool for travelers. Another key factor fueling market growth is the rise of artificial intelligence (AI) and machine learning (ML) In the travel industry. These technologies enable personalized recommendations and enhance the overall travel experience. However, security and piracy concerns continue to pose challenges for market players. Travelers demand secure platforms for booking and managing their trips, and companies must invest in strong cybersecurity measures to protect sensitive customer data.

What will be the Size of the Travel Technologies Market During the Forecast Period?

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The market encompasses a range of solutions that enhance and streamline various aspects of the travel industry, from tour operators and travel agencies to hotels, flights, tours, transfers, and activities. Online bookings have become the norm, with digital platforms offering inventory control, scheduling, and back-office operations efficiency. Virtual reality and augmented reality technologies provide great experiences, enabling clients to visualize destinations before booking. Emerging technologies such as blockchain, cybersecurity, facial recognition, fingerprint recognition, and document recognition ensure secure and seamless transactions.



IoT devices and digital data enable real-time monitoring and optimization of travel services. Tour companies leverage these technologies to enhance the client experience, increase revenues, and stay competitive In the digital age. Digital payments, including mobile wallets and e-wallets, have become essential for travel businesses to cater to evolving consumer preferences. Overall, travel technology continues to evolve, integrating various innovations to offer more personalized, efficient, and secure travel experiences.

How is this Travel Technologies Industry segmented and which is the largest segment?

The travel technologies industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Travel industry
  Tourism industry
  Hospitality industry


Product

  Global distribution system
  Airline and hospitality IT solutions


Type

  Leisure
  Business
  Group


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France


  APAC

    China
    India
    Japan


  Middle East and Africa



  South America

    Brazil

By Application Insights

The travel industry segment is estimated to witness significant growth during the forecast period.

The market plays a pivotal role In the global travel industry, introducing innovative solutions to optimize and improve various aspects of travel. Technologies such as voice search, voice control, artificial intelligence, contactless solutions, and virtual reality are transforming the travel experience for both commercial and individual clients. Travel agencies and tour operators benefit from automation in reservation processes, inventory control, back-office operations, and real-time translation services. Online booking platforms, e-commerce platforms, and chatbots streamline the booking experience, offering contactless payments, travel-hailing apps, and review websites.

Furthermore, the integration of IoT devices, document recognition, facial recognition, and fingerprint recognition enhances security and convenience. The travel technology sector continues to evolve, with advancements in augmented reality, artificial intelligence, and blockchain, offering new opportunities for growth In the travel, tourism, and hospitality sectors.

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The travel industry segment was valued at USD 3.97 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 36% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American market is characterized by advanced infrastructure and innovative solutions. Key players, including Expedia, Booking.Com, and Airbnb, are based in this region and have significantl