Domestic Tourism Market Report 2026

The domestic tourism market size has grown rapidly in recent years. It will grow from $2.07 trillion in 2025 to $2.4 trillion in 2026 at a compound annual growth rate (CAGR) of 16.1%. The growth in the historic period can be attributed to development of national tourism infrastructure, government promotion of local tourism, rising middle-class travel participation, availability of affordable domestic transport, growth of hospitality services.

The domestic tourism market size is expected to see rapid growth in the next few years. It will grow to $4.31 trillion in 2030 at a compound annual growth rate (CAGR) of 15.7%. The growth in the forecast period can be attributed to increasing investments in smart tourism initiatives, rising demand for sustainable domestic travel, expansion of experiential and cultural tourism, growing adoption of mobile travel apps, increasing focus on regional tourism development. Major trends in the forecast period include increasing adoption of digital travel booking platforms, rising demand for regional and short-haul travel, growing popularity of experience-based domestic trips, expansion of sustainable and eco-tourism options, enhanced focus on local cultural experiences.

The rising popularity of countryside and nature tourism is expected to drive the growth of the domestic tourism market in the coming years. Countryside and nature tourism involve visiting rural areas and natural settings to enjoy tranquility, scenic beauty, and outdoor activities. Demand for this type of tourism is increasing as more people seek an escape from urban life, offering peace, relaxation, and a chance to connect with nature. Countryside and nature tourism also boost domestic tourism by attracting visitors to rural regions, spreading economic benefits, and easing pressure on urban tourist hotspots. For instance, in May 2023, according to a report by the United Nations World Tourism Organization, international tourist arrivals in Spain during the first quarter of 2023 surged to 80% of pre-pandemic levels, totaling around 235 million travelers - more than double the number from the same period in 2022. This represents a recovery of approximately two-thirds (66%) of pre-pandemic levels, highlighting the industry’s ability to rebound and regain momentum. Therefore, the growing appeal of countryside and nature tourism is fueling the expansion of the domestic tourism market.

Major companies operating in the domestic tourism market are focusing on technological advancements and innovation, such as AI trip planners, to enhance customer experiences and streamline travel planning. An AI trip planner is a digital tool that uses artificial intelligence to analyze user preferences and travel data to generate personalized, efficient, and optimized travel itineraries. For example, in June 2023, a Netherlands-based online travel agency launched its AI Trip Planner, a feature within its app leveraging AI and large language model technology from OpenAI’s ChatGPT API to provide a conversational and personalized travel planning experience. This tool enables users to receive tailored travel recommendations, explore destinations, and book accommodations seamlessly through an interactive chat interface.

In January 2024, Travel + Leisure Co., a US-based company specializing in vacation ownership and travel experiences, acquired Accor Vacation Club for $48 million. Through this acquisition, Travel + Leisure Co. expanded its portfolio and strengthened its presence in the vacation ownership market. Accor Vacation Club benefits from Travel + Leisure Co.’s extensive network and industry expertise, supporting its growth and integration into a broader vacation ownership framework. This strategic move allows Travel + Leisure Co. to offer a more comprehensive range of vacation experiences and enhance its competitive position in the market. Accor Vacation Club is an Australia-based company providing domestic tourism.

Major companies operating in the domestic tourism market are Marriott International Inc., Four Seasons Hotels Limited, Loews Hotels Holding Corporation, Relais & Châteaux International, Holiday Hospitality Franchising LLC, Hilton Worldwide Holdings Inc., Hyatt Hotels Corporation, Radisson Hospitality Inc., Accor S.A., InterContinental Hotels Group PLC, Sofitel Hotels & Resorts, Best Western International Inc., Motel 6 Operating L.P., Shangri-La International Hotel Management Ltd., Omni Hotels Management Corporation, Red Roof Inns Inc., Choice Hotels International Inc., Wyndham Hotels & Resorts Inc., Extended Stay America Inc., Kimpton Hotels & Restaurants LLC, Sonesta International Hotels Corporation, Drury Hotels Company LLC, The Ritz-Carlton Hotel Company L.L.C., La Quinta Holdings Inc., Fairmont Hotels & Resorts Inc.

North America was the largest region in the domestic tourism market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the domestic tourism market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the domestic tourism market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The domestic tourism market includes revenues earned by entities by travel planning and booking, tour packages, guided tours and dining recommendations and reservations. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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