Driving Vacation Market Research, 2031
The global driving vacation market was valued at $121.2 billion in 2021, and is projected to reach $513.3 billion by 2031, growing at a CAGR of 15.7% from 2022 to 2031.
Driving vacation consists of long road journey which may be self-drive and chauffeur driver. In other words, driving vacation refers to traveling outside regular environment of a person and exploring places with personal interest. Moreover, the travelers share their experiences on the social media platform which inspires other customers to visit the destination.
Driving vacation is generally considered as long road trips which are taken for pleasure, vacations, sightseeing trips, and outdoor recreation. Road infrastructure is directly proportional to the road trips. According to the report of U.S. department of transportation, the 9 out of 10 long-distance trips are traveled by personal vehicles. As the road are smoother, well built, well-lit with less number potholes, and speed bumps create a better driving experience and provide a better efficiency as well as a sense of safety and control to the driver or rider. Hence, building better infrastructure and maintaining it is anticipated to boost the driving vacation market during the forecast period. Knowledge of people about numerous societal trends has increased as a result of their increased exposure to various social media platforms. Customers prefer travel-related services and goods based on recommendations from those who have visited or stayed there before. They also refer to evaluations and analysis provided on different social networking websites. Site views and opinions provide more transparency on goods, services, and experiences. Customers who are seeking for a unique holiday experience are informed through social media exposure. They primarily choose personalized travel packages, which is expected to boost the driving vacations market growth during the forecast period.
Travelers in the present, opt for unique and exotic holiday destinations in their own country, to get away from daily hectic schedules and to gain valuable experiences. Private, quiet, serene, and exotic locations are major factors that people consider while choosing their travel location for outdoor vacation. Private islands have been voted as top preference by the luxury travelers. In addition, destinations, which are culturally and traditionally intriguing, are getting popular among the affluent travelers, owing to growing interest of people to learn and absorb the local culture. Travelers who want to gain first-hand taste of culture and local life often opt for culinary tours. According to the State of Food Travel Industry report 2021, 56% of millennial and younger people are seeking food or drink experiences while planning for outdoor vacation. The same report also shows that around 39% programs on food and travel are leading to more food travel. Therefore, the rise in demand for unique holiday experience is expected to drive the driving vacation market demand during the forecast period.
New vacation spots are emerging both domestically and abroad as a result of rising middle-class spending and a desire to visit surprising places. . In order to fully experience the local culture and enrich their outdoor holiday, tourists choose to spend a sizable sum of money traveling to new locations. Many developing regions including those in Asia-Pacific, the Middle East, and Africa are expanding their tourism growth potential to draw in more leisure travelers. The growth of the state tourism industry which is supported by each state or province separately contributes to the expansion of the driving vacation industry during forecast period,
However, The target of terrorists has shifted towards international tourists and visitors. Some of these famous incidents include The Luxor massacre, in November 1997; 9/11 at World Trade Center; and 26/11 Mumbai attacks. These incidents have severely affected the travel & tourism industry, thus hampering the driving vacation market growth. Surge in number of crime rates, such as kidnaping, pickpocket, robbery, and others has led to instability in various tourism destinations. For instance, in France, increase in such crime rates has resulted into drop of Chinese tourists by more than 25%, drop in Japanese tourists by more than 35%, and drop in Korean tourist by more than 25%, in the year 2016. Thus, the above factor is majorly hampering the growth of the driving vacation market. Furthermore, pandemic disrupted growth of the business environment of every country, which is expected to be the major challenge for the driving vacation market for growth.
The global driving vacation market is categorized into tour type, traveler type, mode of booking and region. By tour type, it is classified into customized road tour and fixed departure tour. On the basis of traveler type, it is fragmented into solo, group and others. By mode of booking, the market is segmented into online travel agency and direct travel agents. Region wise, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, Switzerland, Spain and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia and Rest of Asia-Pacific). LAMEA (UAE, South Africa, Saudi Arabia, Brazil, Turkey and Rest of LAMEA).
On the basis of tour type, the customized road tour segment accounted for around 72.9% of global alcohol-infused ice cream market share in 2021 and is expected to sustain its share during the forecast period. Customized tour packages enable people to do tasks in their own way. It is a customized package made just for individuals, couples, families, or a group based on their specified needs, desired destinations, dates, tastes, and financial constraints. Travelers are choosing unique and exotic vacation destinations to get away from their hectic daily schedules and gain valuable experiences. Private, quiet, serene, and exotic locations are important factors that people consider when deciding where to travel. People are more interested in learning about and understanding their local culture, so they actively seek out culturally and traditionally intriguing locations. As a result, driving vacation market growth through the customized tour segment. In addition, the desire for exploring new destinations of the traveler and searching for an eco-friendly travel experience has resulted in demand for highly customized travel itineraries. Travelers seeking eco-friendly and sustainable luxury while traveling, which offers a rewarding and authentic travel experience, thereby, protecting the environment and contributing to the development of the local community.
On the basis of traveler type, the group segment was valued at $50,450.2 million in 2021, and is expected to reach $207,780.5 million by 2031, with a CAGR of 15.3%. Groups that travel for leisure, recreation, and outdoor vacations are termed as leisure groups. This also includes travel by group of people for relaxation and entertainment. A group comprises of friends, colleagues, schools and colleges, group particularly seeking for various group activities and funs such as active adventures, multisport options that include cycling, trekking and some volunteer activities. The group segment includes friend circles, corporate groups, office colleagues, summer camps, school camps, and clubs. Participation in adventure activities has a significant impact on the personality of an individual and other leadership skills, which is one of the main reasons why group driving vacations are gaining popularity in corporations and schools. The reasonable and pre-planned holiday package promotes this segment. Thus, above factors are likely to contribute in driving vacation market share.
According to the driving vacation market trends, depending on mode of booking, the online travel agency segment was valued at $44,739.1 million in 2021, and is expected to reach $195,299.9 million by 2031, with a CAGR of 16.0%. Online travel agencies (OTAs) are companies that act as online intermediaries for various travel services. These services include car rentals, travel packages, hotels, and flights, among others. Moreover, OTAs are used by millions of people worldwide to book both leisure and business trips. The increase in the number of travelers over the last few decades has made traveling more complex than before. In such cases, travel agencies serve as helpful navigators. Furthermore, the online travel agency uses social media platforms to promote online booking offers. The various marketing strategies offered by online travel agencies, such as promo codes, gift cards, and loyalty programs, encourage travelers to book vehicles and accommodations through online sources. Thus, above-mentioned factors are likely to contribute for the growth of the driving vacation market share through online travel agency segment during the forecast period.
Region wise, North America dominated the driving vacation market size in 2021, and is expected to sustain its dominance throughout the driving vacation market forecast period. The market for Canada and Mexico also shows a hike in the number of people opting for driving vacations owing to increase in air connectivity and rise in popularity of the nearby unique destination places. U.S. saw more than 33 million international departures in the year 2020. Recent years have seen the UK, Australia, ASEAN countries, and New Zealand as the most popular outbound travel destination among the U.S. travelers. Large number of travelers are environment conscious in the region and hence, are opting for ecotourism. The growth of the North America market for outbound travel can be attributed to rapid adoption of digital media, which assists them in looking for new travel destinations. Thus, above factors are likely to support for the growth of the North America driving vacation market size during forecast period.
The players operating in the global driving vacation industry have adopted various developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Alamo, Adventures overland, American Express Travel, Expedia group Inc., The hertz corporation, JTB Americas ltd., Priceline (booking holding Inc., Scott Dunn ltd., SOTC travel, Thomas Cook India Pvt. Ltd, Tourradar, Travel leader group, Travelsphere, Triumph Expedition Pvt. Ltd., Undiscovered mountains, Wexas Travel Management, World travel Inc., Butterfield & Robinson, Wild frontiers travel and Audley travel.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the driving vacation market analysis from 2021 to 2031 to identify the prevailing driving vacation market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the driving vacation market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global driving vacation market trends, key players, market segments, application areas, and market growth strategies.
Driving Vacation Market Report Highlights
Market Size By 2031
USD 513.3 billion
CAGR of 15.7%
2021 - 2031
By Tour Type
By Traveler type
By Mode of booking
Key Market Players
SCOTT DUNN LTD, Audley Travel, PRICELINE (BOOKING HOLDINGS INC.), Undiscovered mountains, Expedia Group Inc., World travel inc, wild frontiers travel.com, AMERICAN EXPRESS TRAVEL, TourRadar, JTB AMERICAS, LTD, the hertz corporation, wexas travel management, SOTC travel, BUTTERFIELD & ROBINSON, travelsphere, Adventures overland, Alamo, THOMAS COOK INDIA LTD, travel leaders group, Triumph expedition pvt. Ltd
According to top-level CXOs, travelers now a days are opting and actively planning for vacation, to get away from the daily hectic schedule and gain valuable experiences. Pristine, quiet, serene, and exotic locations are the major factors that people consider while choosing their location for vacation. As a result, natural and unadulterated destinations are gaining popularity among travelers.
Government initiatives for facilitating tourist access and improving infrastructure in order to promote and expand the road trip and vacation scope. Growth in disposable income and increase in upper middle-class spending has raised the demand for high and better service standards, The market players are formulating unique strategies to target growing middle-class segment to capitalize their market share. For instance, these companies prefer hiring qualified individuals who can speak the international language and communicate easily with travelers, which in turn supports the growth of the outdoor vacation market during the forecast period. Furthermore, there is notable boost in travel and tourism owing to prolonged restrictions caused by COVID-19. People leaning towards self-drive vacation for road trips owing to safe, convenient form of transport. Moreover, rise in trend to explore a niche destination boosts the growth of the driving vacation market.