United States Travel Tourism Market By Type (Leisure, Educational, Business, Sports, Others), By Traveler Type (Solo, Group, Couple), By Travel Mode (Travel Packages, Self-Catered), By Booking Mode (Online, Offline), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

United States Travel Tourism Market was valued at USD 182.34 Billion in 2024 and is expected to reach USD 456.21 Billion by 2030 with a CAGR of 3.67% during the forecast period. The United States Travel Tourism market is fueled by several key drivers. A strong domestic travel culture, supported by a large and mobile population, significantly boosts internal tourism. The country’s diverse range of attractions—ranging from natural wonders like national parks to iconic cities—draws both domestic and international visitors. Business travel is another major contributor, with the U.S. hosting numerous global conferences and events. Advanced transportation infrastructure, including a vast network of airports and highways, facilitates easy travel across regions. Also, the rise of digital platforms and online booking services has simplified travel planning and increased accessibility. Government initiatives promoting tourism and investments in infrastructure further support market growth. An increase in international arrivals, especially from emerging markets, continues to strengthen the industry.

Key Market Drivers

Rising Disposable Incomes

Rising disposable incomes among American households have emerged as a significant driver of growth in the United States travel and tourism market. As a part of this, as of September 2024, United States saw a 0.3% increase in disposable personal income over the previous month. As individuals and families experience greater financial stability and increased purchasing power, discretionary spending on leisure activities—including travel—has seen a substantial uptick. This shift has led to more frequent domestic trips, weekend getaways, and international vacations. Higher disposable incomes also enable travelers to spend more on premium services such as luxury accommodations, fine dining, guided tours, and experiential travel activities, thereby boosting overall tourism revenue. Also, affluent consumers are more likely to explore niche tourism segments like wellness tourism, adventure tourism, and eco-tourism, further diversifying the market. Travel companies are capitalizing on this trend by offering personalized packages, loyalty programs, and flexible payment options to attract these high-spending tourists. The increase in income levels has also supported the growth of the millennial and Gen Z travel segments, who prioritize experiences and are willing to allocate a significant portion of their income to travel. Overall, rising disposable incomes continue to play a vital role in shaping consumer behavior and driving expansion in the U.S. travel and tourism industry.

Increasing Government Support to Strengthen the Tourism Sector

Government support plays a crucial role in driving the growth and resilience of the United States travel and tourism market. As a part of this, as of July 2024, the U.S. Department of Commerce, having set an ambitious five-year target through the National Travel and Tourism Strategy to welcome 90 million international visitors annually by 2027, has announced that this milestone is now expected to be achieved ahead of schedule—reflecting strong momentum and recovery in the nation’s inbound tourism sector. Federal, state, and local authorities have consistently implemented policies and initiatives aimed at promoting tourism, enhancing infrastructure, and improving the overall travel experience. One key area of focus is investment in transportation infrastructure, including the modernization of airports, highways, and public transit systems, which facilitates smoother and more accessible travel across the country. In addition, government agencies such as Brand USA actively promote the United States as a premier travel destination through global marketing campaigns. These efforts help attract international tourists and boost foreign exchange earnings. Post-pandemic recovery efforts have also included financial support packages, tax incentives, and grants for tourism-related businesses, helping them recover and thrive. Also, the U.S. government works closely with private stakeholders to encourage sustainable tourism practices and support small tourism enterprises. Such strategic support not only enhances the global competitiveness of the U.S. tourism sector but also creates jobs, stimulates local economies, and ensures long-term industry growth. Increasing government involvement continues to be a strong catalyst for market expansion.

Growing Business Travel

Business travel remains a key driver of the United States travel and tourism market, contributing significantly to domestic and international tourism revenue. As a part of this, according to the Global Business Travel Association, as of 2022, USD 421.1 billion USD was spent on business travel, which led to $119 billion in tax income. In addition, it supported 6 million jobs, accounting for 3.5% of all employment and 2% of the US GDP. The U.S. serves as a global hub for corporate activities, hosting numerous conferences, trade shows, summits, and industry events throughout the year. Major business cities such as New York, San Francisco, Chicago, and Washington, D.C. attract professionals from around the world, boosting demand for flights, hotels, and local services. The increasing globalization of businesses, coupled with the rise of hybrid and remote work models, has led to a surge in corporate retreats, incentive trips, and networking events. Many companies are prioritizing in-person meetings and business development activities, further driving business travel. Also, advancements in travel technology, corporate travel management platforms, and loyalty programs have made business travel more seamless and cost-effective. Government initiatives to streamline visa processes and improve airport infrastructure also support the growth of this segment. The continued expansion of the Meetings, Incentives, Conferences, and Exhibitions (MICE) industry ensures that business travel will remain a crucial pillar of the U.S. tourism market, fostering economic growth and cross-border collaboration.

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Key Market Challenges

Regulatory & Taxation Issues

Regulatory and taxation challenges significantly impact the growth of the U.S. travel and tourism market. High taxes on airline tickets, hotel stays, car rentals, and tourism-related services increase the overall cost of travel, making the U.S. a more expensive destination compared to global competitors. Local and state governments often impose additional tourism taxes, such as occupancy taxes on hotels, which can deter budget-conscious travelers and affect the competitiveness of U.S. cities in attracting international visitors. Also, complex visa policies and stringent entry requirements create barriers for international tourists. Lengthy visa approval processes and travel restrictions can discourage travelers, especially from emerging markets like China and India. Changes in government regulations, such as varying short-term rental policies for platforms like Airbnb, also create uncertainty for both travelers and businesses in the sector. Also, regulatory compliance costs for travel businesses, including environmental and labor regulations, add operational expenses that may be passed on to consumers. Addressing these taxation and regulatory challenges through streamlined visa policies, tax incentives, and business-friendly regulations could enhance the U.S. tourism industry’s global appeal and economic contribution.

Economic Uncertainty

Economic uncertainty is a major challenge affecting the U.S. travel and tourism market. Fluctuations in inflation, interest rates, and consumer confidence directly impact travel demand, as individuals and businesses adjust spending based on economic conditions. During economic downturns or periods of financial instability, discretionary spending on travel and leisure tends to decline, leading to reduced hotel bookings, airline ticket sales, and tourism-related activities. Rising inflation and higher costs of living also affect travel affordability. Increased prices for flights, accommodations, and dining force travelers to cut back on spending, opt for budget-friendly alternatives, or postpone trips altogether. Similarly, businesses may reduce corporate travel budgets, limiting industry events and conferences. Also, fluctuations in currency exchange rates impact inbound tourism, making travel to the U.S. more expensive for foreign visitors when the U.S. dollar strengthens. Economic instability in key tourism markets, such as Europe and Asia, can further reduce international arrivals. To mitigate these challenges, the industry must adapt through flexible pricing strategies, targeted promotions, and government policies that support tourism growth during economic downturns, ensuring resilience in uncertain financial conditions.

Key Market Trends

Rise of Domestic Travel

The rise of domestic travel has emerged as a significant trend in the United States travel and tourism market, particularly following the COVID-19 pandemic. As a part of this, according to a recent study, as of 2022, spending on domestic travel in the United States increased from 868 billion dollars in 2021 to approximately 920 billion dollars in 2022.As international travel faced restrictions and uncertainties, American travelers increasingly turned to exploring destinations within their own country. This shift has led to a surge in road trips, weekend getaways, and visits to national parks, small towns, and lesser-known local attractions. Domestic tourism offers convenience, lower costs, and greater flexibility, making it an attractive option for families, solo travelers, and remote workers alike. The growth of “staycations” and regional travel has supported local economies, especially in rural and suburban areas that were previously less visited. Travelers are seeking authentic experiences closer to home, including cultural heritage sites, outdoor adventures, and culinary tourism. Also, the expansion of short-term rental platforms like Airbnb and improved domestic flight connectivity have made planning U.S.-based trips easier and more accessible. Government and state-level tourism campaigns have further promoted domestic destinations. As economic uncertainty and evolving health concerns persist, domestic travel is expected to remain a strong and resilient segment within the broader U.S. tourism market.

Increased Consumer Focus on Wellness and Health Tourism  

An increasing consumer focus on wellness and health tourism has become a defining trend in the United States travel and tourism market. Travelers are prioritizing physical, mental, and emotional well-being, leading to a growing demand for experiences that promote relaxation, self-care, and healthy living. This shift is driven by heightened health awareness post-pandemic, rising stress levels, and a desire for holistic lifestyles. Wellness tourism includes a wide range of offerings, such as spa retreats, yoga and meditation getaways, fitness resorts, thermal springs, and nature-based healing experiences. U.S. destinations like California, Arizona, and Florida are popular for their wellness-focused resorts and natural settings conducive to rejuvenation. Health tourism is also growing, with travelers seeking specialized treatments, preventive care, and medical procedures at reputable U.S. healthcare facilities. Hotels and travel providers are responding to this trend by incorporating wellness amenities, organic cuisine, fitness programs, and mindfulness activities into their offerings. As consumers continue to invest in self-care and balanced living, wellness and health tourism is expected to remain a high-growth segment, contributing significantly to the evolution of the U.S. tourism landscape.

Sustainable and Eco-Friendly Travel

Sustainable and eco-friendly travel is rapidly gaining momentum in the United States, as environmentally conscious consumers seek ways to minimize their ecological footprint while exploring new destinations. This trend reflects a growing awareness of climate change, conservation, and responsible tourism practices. Travelers are increasingly choosing destinations, accommodations, and tour operators that prioritize sustainability, including those that use renewable energy, reduce waste, and support local communities. National parks, wildlife reserves, and eco-lodges are experiencing higher visitation rates, as nature-based tourism aligns with the principles of sustainability. Also, more travelers are opting for green-certified hotels, using public transportation, and participating in low-impact activities such as hiking, biking, and volunteering for environmental causes during their trips. The tourism industry is responding by adopting eco-friendly practices—reducing single-use plastics, investing in energy-efficient infrastructure, and promoting carbon offset programs. Government agencies and tourism boards are also encouraging sustainable travel through educational campaigns and incentives. As sustainability becomes a core value among travelers—especially millennials and Gen Z—eco-friendly travel is not only a trend but a long-term shift shaping the future of the U.S. travel and tourism industry.

Segmental Insights

Type Insights

Business dominated the United States Travel Tourism market, due to the country's status as a global economic hub. Major cities like New York, San Francisco, Chicago, and Washington, D.C. host numerous corporate headquarters, international conferences, trade shows, and meetings. The presence of a strong and diverse economy fosters frequent domestic and international business travel. Also, the rise in the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector further strengthens demand. Companies continue to prioritize face-to-face interactions for networking, deal-making, and client engagement, despite virtual alternatives. Advanced infrastructure, including world-class airports, hotels, and business centers, supports this segment, making business travel a significant contributor to market revenue.

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Regional Insights

The West region dominated the United States Travel Tourism market, due to its diverse natural attractions, vibrant cities, and favorable climate. Iconic destinations like California, Nevada, and Arizona attract millions of visitors with national parks (e.g., Yosemite, Grand Canyon), beaches, entertainment hubs like Los Angeles and Las Vegas, and cultural landmarks. The region also offers a strong infrastructure for tourism, including major international airports, luxury accommodations, and recreational facilities. Its appeal to both domestic and international travelers contribute significantly to its market dominance. In addition, the South region also holds a significant share in the United States Travel Tourism market due to its rich cultural heritage, historical landmarks, warm climate, and diverse attractions.

Recent Developments

• In April 2025, AXA Partners US (AXA), a global leader in assistance services and insurance solutions, launched AXA Travel Eye—a cutting-edge travel risk management platform developed to improve safety, security, and operational efficiency for business travelers and expatriates. The new platform underscores AXA’s commitment to harnessing advanced technology to deliver real-time risk intelligence, rapid emergency assistance, and streamlined communication—enabling corporations to safeguard their employees and effectively meet duty of care responsibilities.

Key Market Players

• A&K Travel Group Ltd
• Audley Travel US Inc.
• Scott Dunn USA Inc.
• Travel + Leisure Co.
• Artisans of Leisure, Inc.
• American Lloyd Travel Services Pte Ltd
• CWT Global B.V.
• BCD Travel Services B.V.
• TravelPerk S.L.U.
• GBT Partner Solutions

Report Scope:

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

• United States Travel Tourism Market, By Type:

o   Leisure

o   Educational

o   Business

o   Sports

o   Others

• United States Travel Tourism Market, By Traveler Type:

o   Solo

o   Group

o   Couple

• United States Travel Tourism Market, By Travel Mode:

o   Travel Packages

o   Self-Catered

• United States Travel Tourism Market, By Booking Mode:

o   Online

o   Offline

• United States Travel Tourism Market, By Region:

o   South

o   West

o   Mid-West

o   North-East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the United States Travel Tourism Market.

Available Customizations:

United States Travel Tourism Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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