U.S. & Canada Travel Market Size, Share, and Growth Analysis, By Type (Leisure Travel, Business Travel), By Age Group (21-30 Years, 31-40 Years), By Tourist Type, By Expenses, By Country - Industry Forecast 2025-2032

U.S. and Canada Travel Market size was valued at USD 1263.39 billion in 2023 and is poised to grow from USD 1383.41 billion in 2024 to USD 2859.33 billion by 2032, growing at a CAGR of 9.5% during the forecast period (2025-2032).

Travelers are increasingly seeking tailor-made itineraries that harmoniously integrate entertainment and relaxation, with a strong emphasis on affordability and convenience. This trend is particularly pronounced among millennials and younger demographics, driving a rising demand for value-oriented experiences. According to the U.S. Travel Association, travel spending hit $93 billion in February 2023-marking a 5% increase from 2019 and a 9% rise from 2022-indicating robust growth in the market driven by the millennial and middle-class traveler segments. Factors such as improved social attitudes, lenient visa policies, and enhanced governmental support are also contributing positively to international travel. Moreover, the growing interest in transformational travel centered around wellness is expected to further energize the sector, promoting holistic journeys that nurture mind, body, and spirit.

Top-down and bottom-up approaches were used to estimate and validate the size of the U.S. And Canada Travel market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

U.S. And Canada Travel Market Segments Analysis

U.S. and Canada Travel Market is segmented by Type, Age Group, Tourist Type, Expenses. Based on Type, the market is segmented into Leisure Travel, Business Travel, Cruise, Specialty/Activity/Sports and VFR (Visiting Friends and Relatives). Based on Age Group, the market is segmented into 21-30 Years, 31-40 Years, 41-60 Years and 60 and Above. Based on Tourist Type, the market is segmented into Domestic and International. Based on Expenses, the market is segmented into Education Fees, Insurance Fees, Accommodation Expenses, Monthly Food & Grocery Expenses and Other Expenses. Based on country, the market is segmented into U.S. and Canada.

Driver of the U.S. And Canada Travel Market

Employment rates serve as a crucial barometer of economic health, significantly influencing the travel sector. High employment levels typically result in greater disposable income for consumers, fostering increased expenditures on travel-related activities. In contrast, lower employment rates often lead to reduced disposable income, which can cause consumers to cut back on their travel spending. As such, the fluctuations in employment rates play an essential role in shaping consumer behavior and overall trends within the U.S. and Canada travel market, directly affecting demand and growth opportunities in the industry.

Restraints in the U.S. And Canada Travel Market

Geopolitical instability and security issues pose significant challenges to the global travel market, particularly in the U.S. and Canada. Events such as terrorist attacks or political unrest can trigger travel advisories and restrictions, resulting in a marked downturn in travel demand. Travelers may become hesitant due to concerns about safety, leading to a decline in international trips and an overall impact on the tourism sector. Consequently, these factors can hinder the growth and recovery of the travel industry, creating uncertainty for businesses reliant on tourist traffic and affecting the overall economic landscape of the region.

Market Trends of the U.S. And Canada Travel Market

The domestic travel market in the U.S. and Canada is witnessing a robust resurgence, propelled by a growing preference for local experiences post-pandemic. Travelers are increasingly favoring road trips, outdoor adventures, and unique accommodations, contributing to substantial gains in local tourism. Enhanced safety protocols and a focus on flexibility have bolstered consumer confidence, leading to a rise in short-term getaways and experiential travel options. Additionally, the integration of technology for contactless services and personalized itineraries is shaping customer expectations. As sustainability becomes a priority, eco-friendly travel choices are also gaining traction, further transforming the landscape of domestic travel in North America.