AR/VR in Travel & Tourism Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology (Augmented Reality and Virtual Reality), By Component (Hardware, Software, and Services), By Application (Hospitality, In-Flight Entertainment, Travel Booking Services, AR Gamification, and Navigating), By Product (AR-Powered Glasses, AR Mobile Apps/Software, and VR Headsets), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 10.09 Billion
CAGR (2026-2031)	16.31%
Fastest Growing Segment	Augmented Reality
Largest Market	North America
Market Size (2031)	USD 24.98 Billion

Market Overview

The Global ARVR in Travel & Tourism Market will grow from USD 10.09 Billion in 2025 to USD 24.98 Billion by 2031 at a 16.31% CAGR. The Global ARVR in Travel & Tourism Market comprises immersive technologies that utilize virtual reality tours and augmented reality overlays to enhance destination marketing and the passenger experience. These solutions enable travelers to explore locations remotely prior to booking and access real-time, interactive navigational information while visiting physical sites. Key drivers supporting market growth include the widespread ubiquity of high-performance smartphones, the global expansion of high-speed 5G connectivity, and a rising consumer demand for self-guided, contactless digital engagement tools that offer autonomy during travel.

A significant challenge impeding market expansion is the fragmentation of technical standards and the high capital expenditure required for producing high-fidelity 3D content. This financial barrier often limits adoption among smaller tourism operators who lack the resources to develop proprietary immersive applications. Despite these hurdles, consumer readiness for digital integration remains high, validating the platform for these technologies. According to the International Air Transport Association (IATA), in 2025, 78% of global passengers expressed a preference for using smartphones to manage their travel journey, demonstrating a fertile ground for mobile-based augmented reality adoption.

Key Market Drivers

The Proliferation of High-Speed 5G Networks and Advanced Mobile Hardware is a foundational driver accelerating the mass adoption of augmented and virtual reality in the travel sector. As travelers increasingly rely on sophisticated smartphones as their primary interface for journey management, the hardware limitations that previously hampered mobile AR have largely dissipated. This ubiquity of powerful, 5G-enabled devices allows for the seamless delivery of data-intensive AR overlays, such as real-time navigational aids and interactive cultural translations, without requiring bulky proprietary equipment. The depth of this digital dependency is highlighted by consumer behavior; according to SITA, October 2025, in the 'Passenger IT Insights 2025' report, mobile engagement across the passenger journey has increased by 20 percentage points since 2020. This robust mobile ecosystem provides a scalable platform for developers to deploy high-fidelity immersive applications that enhance traveler autonomy and experience.

Consequently, there is a measurable Surge in Immersive Marketing Campaigns by Destination Management Organizations (DMOs) aimed at capitalizing on visual influence to secure bookings. Recognizing that travelers are heavily swayed by digital media consumption, DMOs are rapidly upgrading from static imagery to immersive VR previews that offer a "try-before-you-buy" experience. This strategy is directly validated by shifting inspiration sources; according to Trip.com Group, February 2025, in the 'Momentum 2025' report, 70% of travelers are now planning trips inspired by content they have viewed on screen, necessitating more engaging marketing formats to capture this audience. The industry's broader commitment to such technological integration is evident on the supply side as well. According to the World Travel & Tourism Council (WTTC), in 2025, 94% of industry leaders identified artificial intelligence—a key enabler for personalized immersive content—as mission-critical for their future operations.

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Key Market Challenges

The high capital expenditure required for producing high-fidelity 3D content constitutes a formidable barrier to the growth of the Global ARVR in Travel & Tourism Market. Developing proprietary immersive applications demands significant financial resources, effectively segregating the market into well-funded conglomerates and resource-constrained smaller operators. This financial disparity prevents independent tourism providers from adopting the augmented reality overlays and virtual tours that are essential for modern destination marketing. Consequently, the market suffers from a consolidation of technical capabilities, where only major players can sustain the costs of innovation.

This fragmentation limits the diversity of available content, as the vast majority of smaller destinations remain unable to digitize their offerings. The inability of these operators to participate in the immersive ecosystem stifles the broader adoption of the platform and restricts consumer access to a wider range of experiences. According to the World Travel & Tourism Council (WTTC), in 2025, global capital investment in the travel sector was forecast to exceed $1 trillion, illustrating the immense financial threshold that smaller entities must overcome to compete in this technologically intensive landscape.

Key Market Trends

The Integration of Metaverse-Based Virtual Destination Ecosystems is fundamentally reshaping the market by transitioning virtual tourism from passive observation to active, gamified participation. Unlike static 360-degree tours used primarily for marketing previews, these ecosystems enable travelers to inhabit persistent digital worlds that blend fictional narratives with physical locations, effectively creating a new category of "story-living" tourism. This demand for deep narrative immersion is driving the development of complex virtual platforms where users can engage in interactive role-play rather than simple sightseeing, thereby opening new revenue streams for destination operators through digital assets and virtual experiences. According to Booking.com, October 2025, in the 'Travel Predictions 2026' report, 53% of global travelers expressed a willingness to participate in immersive role-playing adventures based on their favorite books or films, signaling a substantial addressable market for these narrative-driven virtual environments.

Simultaneously, the Implementation of In-Flight Virtual Reality Entertainment Systems is gaining traction as airlines seek to alleviate the physical constraints of long-haul travel through immersive digital isolation. By deploying headset-based solutions, carriers can offer passengers a "private theater" experience that visually removes them from the cabin environment, providing stress-reducing content such as guided meditation or cinema-grade entertainment in a way that seatback screens cannot. This technology is moving beyond experimental phases into functional service differentiators, particularly for premium economy and business class segments where passenger comfort is paramount. According to Xpert.Digital, April 2025, in the 'Virtual Reality on the way to the mainstream' article, nearly 4,000 passengers had successfully utilized the new VR headset service on selected Lufthansa flights, demonstrating a high level of consumer acceptance for wearable immersive technology in transit settings.

Segmental Insights

Based on current industry analysis, the Augmented Reality (AR) segment is recognized as the fastest-growing category within the Global AR/VR in Travel & Tourism Market. This accelerated expansion is primarily attributed to the ubiquitous ownership of smartphones, which allows travelers to access AR applications without the need for specialized, capital-intensive hardware often required for Virtual Reality. Market intelligence indicates that the segment's growth is further propelled by the practical utility of AR in enhancing on-site experiences, such as providing real-time wayfinding, instant language translation, and interactive historical overlays. Consequently, tourism stakeholders are prioritizing mobile-based AR solutions to enrich physical destinations, driving widespread adoption across the sector.

Regional Insights

North America currently holds the dominant position in the global AR and VR in travel and tourism market. This market leadership is primarily driven by the widespread availability of high-speed internet infrastructure and the strong presence of major technology corporations within the United States. Additionally, the region benefits from a consumer base with high disposable income, which facilitates the early adoption of virtual reality headsets and augmented reality applications for travel planning. The integration of immersive technologies by leading travel agencies and hospitality chains further solidifies the strong standing of North America in this sector.

Recent Developments

• In October 2024, Lufthansa Group launched the world's first Extended Reality (XR) inflight entertainment experience for passengers in its Allegris Business Class Suites. Developed in collaboration with Meta and MSM.digital, the pilot program provided travelers on select long-haul routes with mixed reality headsets to access immersive content, including virtual cinema, travel podcasts, and interactive games. The technology allowed users to engage with digital entertainment while remaining aware of their physical cabin surroundings. The Head of Future Intercontinental Experience Program at Lufthansa remarked that the initiative aimed to elevate onboard comfort and personalize the passenger journey through state-of-the-art spatial computing.
• In September 2024, KLM Royal Dutch Airlines implemented a groundbreaking virtual reality program to assist cabin crew members in returning to work after extended periods of absence. This training initiative allowed employees to simulate a complete flight duty schedule, from pre-flight preparations to in-flight service and hotel arrival, within a controlled virtual environment. The program was designed to rebuild professional confidence and motivation by providing a realistic, low-pressure rehearsal of routine tasks. The Head of Cabin Crew at KLM noted that the VR tool also functioned as an effective assessment mechanism to identify specific support needs for staff during their reintegration process.
• In May 2024, the Singapore Tourism Board established a strategic partnership with Google to introduce location-based augmented reality experiences directly within Google Maps. Unveiled at the Google I/O event, this collaboration enabled tourists to view immersive AR content, such as interactive 3D models and historical storytelling, overlaid on real-world views of Singapore’s iconic landmarks. The initiative leveraged ARCore and Geospatial Creator technologies to enhance navigation and discovery at key precincts like Chinatown and Marina Bay. The Director of the Collaboratory at the Singapore Tourism Board highlighted that the project aimed to revolutionize the visitor experience by making destination exploration more interactive and informative.
• In February 2024, Trip.com Group launched its Trip.Vision application, designed exclusively for the newly released Apple Vision Pro mixed reality headset. This innovative product allowed users to virtually immerse themselves in renowned global destinations such as Mount Everest, the Maldives, and Antarctica through high-definition 360-degree panoramic videos. The application utilized the device's advanced spatial audio and high-resolution display to blend physical spaces with digital travel content, offering a realistic preview of potential vacation spots. The Chief Marketing Officer of Trip.com Group stated that the app aimed to redefine itinerary planning by enabling travelers to explore locations extensively before booking their trips.

Key Market Players

• Meta Platforms, Inc.
• Google LLC
• Microsoft Corporation
• Apple Inc.
• Sony Group Corporation
• HTC Corporation
• Samsung Electronics Co., Ltd.
• Magic Leap, Inc.
• Pico Interactive, Inc.
• Unity Software Inc.

By Technology	By Component	By Application	By Product	By Region
Augmented Reality and Virtual Reality	Hardware Software and Services	Hospitality In-Flight Entertainment Travel Booking Services AR Gamification and Navigating	AR-Powered Glasses AR Mobile Apps/Software and VR Headsets	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global ARVR in Travel & Tourism Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• ARVR in Travel & Tourism Market, By Technology:

• Augmented Reality and Virtual Reality

• ARVR in Travel & Tourism Market, By Component:

• Hardware
• Software
• and Services

• ARVR in Travel & Tourism Market, By Application:

• Hospitality
• In-Flight Entertainment
• Travel Booking Services
• AR Gamification
• and Navigating

• ARVR in Travel & Tourism Market, By Product:

• AR-Powered Glasses
• AR Mobile Apps/Software
• and VR Headsets

• ARVR in Travel & Tourism Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE