UK Travel and Tourism Market Overview:
The UK travel and tourism market size reached USD 163.41 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 290.46 Billion by 2032, exhibiting a growth rate (CAGR) of 6.20% during 2024-2032. The market is growing strongly, driven by increasing international arrivals and heightened domestic tourism. Moreover, the growth is promoted by expanding transport, hospitality, and leisure sectors, coupled with escalated demand for improved digital booking platforms and sustainable travel experiences.
Report Attribute
|
Key Statistics
|
Base Year
|
2023
|
Forecast Years
|
2024-2032
|
Historical Years
|
2018-2023
|
Market Size in 2023 |
USD 163.41 Billion |
Market Forecast in 2032 |
USD 290.46 Billion |
Market Growth Rate 2024-2032 |
6.20% |
UK Travel and Tourism Market Trends:
Surge in Domestic Tourism
Domestic tourism in the UK is witnessing a significant growth, primarily driven by an inclination in customer preferences towards staycations mainly due to environmental concerns and travel constrictions. As per industry reports, during the first quarter of 2023, the travelers in UK increased their average spending per domestic holiday in England by 12%. Additionally, total expenditure on domestic overnight tourism in England during this period reached £5.3 billion. The cost-effectiveness and convenience of exploring local destinations have appealed to UK population, particularly with the elevating costs of international travel. Moreover, coastal regions, historic places, and countryside retreats are engaging more visitors, fostered by substantial investments in local attractions and infrastructure. In addition, government campaigns endorsing domestic tourism have further propelled this trend, as the industry adapts to address the transitioning demands of customers. Furthermore, the surge in domestic tourism is anticipated to continue, reinforcing sustainable tourism practices and profiting regional economies, establishing the UK as a destination with versatile local experiences.
Rising Shift Towards Eco-Friendly Travel and Sustainability
Sustainable travel is emerging as a major trend in the UK travel and tourism market. Customers are rapidly seeking environmentally friendly travel options, giving precedence to environmental conservation, lowered carbon emissions, and ethical practices. According to industry reports, 45% percent of leisure travelers in UK surveyed indicated that recent media coverage of the climate crisis has led them to consider more sustainable travel options. This figure rose to 55% among individuals aged 16-24 and nearly two-thirds among those aged 25-34. Moreover, hospitality businesses and tour operators are aligning with this shift by providing sustainable travel plans, such as eco-friendly accommodations, carbon offset programs, and activities that support local biodiversity and culture. In addition, government protocols endorsing greener travel options, such as public transport investments and electric vehicles (EVs), also bolster this trend. Furthermore, as environmental awareness magnifies among travelers, businesses and firms that incorporate sustainability into their packages are better positioned to appeal eco-customers, redefining the market dynamics of the UK tourism sector.
Rapid Growth of Contactless and Digital Services
Digitalization is transforming the travel and tourism market in UK, with the amplified adoption of virtual tour services, online booking platforms, and mobile apps. As per industry reports, approximately 80% of all travel bookings in UK are made through online booking platforms. Travelers are increasingly depending on digital services for uninterrupted trip planning, from retrieving real-time travel information to booking accommodations. Moreover, the utilization of advanced technologies like artificial intelligence (AI) and data analytics improve personalization, allowing businesses to customize their offerings to traveler preferences. In addition, mobile check-ins and contactless payment services have become prevalent practices, guaranteeing safety as well as convenience. Furthermore, this trend towards digitalization is anticipated to boost, with technological advancements continuing to reshape how travelers interact with tourism services in the country.
UK Travel and Tourism Market News:
- In April 2024, Worldia, a leading connected-trip operator, announced the expansion of its travel services in UK after successfully securing an Atol license and raising €25 million in funding.
- In January 2024, Ryanair, a low-cost passenger airline, announced a strategic partnership with Loveholidays, a major online travel agency in the UK. Under the partnership agreement, Ryanair will offer its flights as part of online package trips.
UK Travel and Tourism Market Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on type, service offering, purpose of visit, and booking type.
Type Insights:
- Domestic
- Inbound
- Outbound
The report has provided a detailed breakup and analysis of the market based on the type. This includes domestic, inbound, and outbound.
Service Offering Insights:
- Ticket Reservation
- Hotel Booking
- Holiday/Tour Packages
- Others
A detailed breakup and analysis of the market based on the service offering have also been provided in the report. This includes ticket reservation, hotel booking, holiday/tour packages, and others.
Purpose of Visit Insights:
- Business
- Leisure and Recreation
- Education
- Medical
- Social Activity
- Others
The report has provided a detailed breakup and analysis of the market based on the purpose of visit. This includes business, leisure and recreation, education, medical, social activity, and others
Booking Type Insights:
- Travel Companies
- Travel Agencies
- Online
- Others
A detailed breakup and analysis of the market based on the booking type have also been provided in the report. This includes travel companies, travel agencies, online, and others.
Regional Insights:
- London
- South East
- North West
- East of England
- South West
- Scotland
- West Midlands
- Yorkshire and The Humber
- East Midlands
- Others
The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.
Competitive Landscape:
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
UK Travel and Tourism Market Report Coverage:
Report Features |
Details |
Base Year of the Analysis |
2023 |
Historical Period |
2018-2023 |
Forecast Period |
2024-2032 |
Units |
USD Billion |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
- Type
- Service Offering
- Purpose of Visit
- Booking Type
- Region
|
Types Covered |
Domestic, Inbound, Outbound |
Service Offerings Covered |
Ticket Reservation, Hotel Booking, Holiday/Tour Packages, Others |
Purpose of Visits Covered |
Business, Leisure and Recreation, Education, Medical, Social Activity, Others |
Booking Types Covered |
Travel Companies, Travel Agencies, Online, Others |
Regions Covered |
London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, Others. |
Customization Scope |
10% Free Customization |
Post-Sale Analyst Support |
10-12 Weeks |
Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
- How has the UK travel and tourism market performed so far and how will it perform in the coming years?
- What has been the impact of COVID-19 on the UK travel and tourism market?
- What is the breakup of the UK travel and tourism market on the basis of type?
- What is the breakup of the UK travel and tourism market on the basis of service offering?
- What is the breakup of the UK travel and tourism market on the basis of purpose of visit?
- What is the breakup of the UK travel and tourism market on the basis of booking type?
- What are the various stages in the value chain of the UK travel and tourism market?
- What are the key driving factors and challenges in the UK travel and tourism?
- What is the structure of the UK travel and tourism market and who are the key players?
- What is the degree of competition in the UK travel and tourism market?
Key Benefits for Stakeholders:
- IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK travel and tourism market from 2018-2032.
- The research report provides the latest information on the market drivers, challenges, and opportunities in the UK travel and tourism market.
- Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK travel and tourism industry and its attractiveness.
- Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.