The customized holiday market is expected to progress at an impressive pace, with a projected CAGR of 13.2% over the forecast period. As of 2024, it is valued at USD 134.2 billion and is anticipated to exceed USD 463.6 billion by 2034, reflecting a 3.4X increase in industry value.
The travel industry is changing fast due to factors like higher disposable income, which are expected to boost sales of customized holidays. This differs from package tours, where the travel agent plans the entire itinerary and customers choose from set options. Now, individuals can create their dream vacations with freedom and flexibility.
Customized holiday packages are becoming popular as they are flexible and have become a significant part of the travel industry. Customized packages offer the advantage of giving travelers complete control over their experiences, unlike group tours where travelers must follow set plans. This flexibility increases the demand for customized holidays.
Customized Holiday Industry Assessment
| Attributes | Description |
|---|---|
| Estimated Global Customized holiday Market Size (2024E) | USD 134.2 billion |
| Projected Global Customized holiday Market Value (2034F) | USD 463.6 billion |
| Value-based CAGR (2024 to 2034) | 13.2% |
Personalized holiday packages are favored as they give customers control over their experience and let them choose what suits them best. Travelers want to explore destinations on their own terms, enjoying off-the-beaten-path adventures.
Customized holiday packages allow them to tailor every part of their trip to match their interests. This allows for personal relaxation time, and customers are often willing to pay more for these personalized packages.
The growing elderly population is also driving industry expansion. Older generations prefer package holidays because they are convenient, hassle-free, and often include insurance, unlike younger generations who prefer unique and independent travel experiences.
Urbanization has increased, leading people to spend more time at work. To relax, they often choose to visit their favorite hill stations or other destinations. This trend is expected to boost sales. Europe is increasingly becoming a favored destination for customized tourism compared to other regions.
Even travel agents are now promoting customized packages to ensure customers have memorable experiences visiting places and spending quality time, either alone or with family and friends. Hence, the customized holiday market is expected to grow significantly, offering customers the experiences they seek.
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The table shows the expected growth of the customized holiday market every six months between 2024 and 2034. It also compares these new predictions with previous forecasts made between 2023 and 2033.
| Particular | Value CAGR |
|---|---|
| H1 | 13.5% (2023 to 2033) |
| H2 | 12.9% (2023 to 2033) |
| H1 | 13.4% (2024 to 2034) |
| H2 | 12.8% (2024 to 2034) |
In the prior analysis, the industry was foretold to make a move at a rate of 13.5% each year in the first half of the previous forecast decade, from 2023 to 2033. Then, this rate was predicted to decrease a bit to 12.9% in the second half of that period. From 2024 to 2034, the growth rate of customized holiday is estimated to start again at 13.4% annually and then drop again to 12.8% in the latter half of this period.
Customized Holiday Packages Gain Popularity among Young Travelers
The rise of new travel destinations worldwide is a key factor driving industry growth. Many people enjoy exploring new places and prefer creating their own schedules. They sometimes have a preference for visiting places not found on standard itineraries. They enjoy traveling alone or with family, which boosts the popularity of customized holidays.
The industry growth is further supported by the growing number of millennial travelers. Younger generations are particularly interested in customized packages and make up a significant part of the overall tourism industry. They prefer traveling independently with customized itineraries, contributing to industry growth.
There's a group of travelers known as 'Free Independent Travelers' (FIT). The FIT segment has grown significantly in recent years. Here, travelers go alone or in small groups seeking unique experiences. The rising popularity of FIT tourism is shaping industry trends.
Online Platforms and Social Media Innovate Customized Holiday Experiences
Finding a suitable customized holiday package is easier now thanks to online platforms dedicated to helping travelers create personalized trips. Increased internet access has also led to the widespread use of social media. As of April 2024, more than 5 billion people, which accounts for beyond 62% of the world's population, are using social media.
The role of social media platforms cannot be overstated when it comes to customized holiday market. These platforms facilitate direct communication between travelers and travel providers. Social media is a powerful tool for sharing experiences, writing reviews, and spreading word-of-mouth recommendations. Positive reviews often attract many tourists to a destination.
Social media platforms like Facebook and Twitter are crucial for marketers to promote their travel products and services, as many travelers use these platforms to plan and shop for their trips. A strong social media presence is essential for all advertising and promotional activities.
Digital Revolution is Reshaping the Customized Travel Industry
The digital revolution has transformed the travel industry, opening up new opportunities for personalized marketing. Travel agents and tour operators are updating their promotion strategies by understanding each traveler's preferences. They send personalized newsletters and emails to attract potential travelers, influencing the customization and personalization industry in travel.
Travel marketers increasingly create customized tours tailored to the needs and interests of travelers. Well-planned trips with personalized touches can significantly enhance the travel experience. Travel-related data is reshaping how the tourism industry is perceived globally.
Principal Consultant
The customized holiday market size was USD 73.3 billion in 2019 and USD 118.7 billion in 2023. Taking into account the CAGR of 12.8% from 2019 to 2023, it can be inferred that investment and development opportunities are set to remain promising to some extent.
The customization and personalization trend in travel has gained a lot of attention in the industry during the historical period. In the past decade, new travel destinations have emerged globally, increasing the demand for personalized travel experiences.
Travelers increasingly sought personalized experiences tailored to their preferences and interests. This trend was driven by a desire for unique travel experiences, flexibility in itineraries, and deeper cultural immersion.
Technology played a crucial role, with online platforms and travel agencies offering more customization options. Preferences shifted toward sustainable and eco-friendly travel choices, influencing tour operators to adapt their offerings.
The COVID-19 pandemic initially paused growth but accelerated digital transformations in the industry. By 2023, the industry rebounded strongly, supported by pent-up travel demand and innovations in personalized travel planning.
Technological advancements have made planning easier for both customers and travel agents. The industry is expected to grow due to widespread internet access. Internet and smartphones empower customers to decide where to go and plan their own itineraries.
The future looks promising as denoted by the projected 13.2% CAGR with continued innovation and adaptation to changing traveler expectations. Technology is going to play a larger role, with AI helping to create more personalized recommendations. Opportunities lie in catering to niche industries like wellness tourism, adventure travel, and cultural immersion experiences.
Tier 1 companies lead the customized holiday market. Big names like Expedia Travels, Thomas Cook, MakeMyTrip, REWE Group, and Scott Dunn Ltd. dominate a large part of the industry by bringing in USD 65.3 billion. These companies are well known for their skill in making custom travel experiences and using advanced technology to make vacations personal.
They have many loyal customers and can reach people all over the world, so they can offer lots of ways to customize trips for different types of travelers. Also, they provide a wide range of services like places to stay, transportation, and things to do, which helps them stay ahead in the industry.
Tier 2 companies include TCS World Tours, Zicasso, Classic Journeys, Flamingo Travels, and Tours in the City. They hold around USD 19.5 billion in revenue. Although not as big as Tier 1 companies, Tier 2 companies are valued for their special services and focus on specific requirements.
These companies are good at giving top-notch services. Even though they're smaller than Tier 1 companies, Tier 2 firms stand out by paying close attention to details, offering personal service, and planning creative trips. As the travel industry changes, these companies are in a good position to grow by attracting more customers with unique services.
Tier 3 companies comprise Rainbow World Tours, Redback Travel, Nest Travels, Global Basecamps, and Ker & Downey. While not as noticeable as Tier 1 and Tier 2 companies, they still produce a decent revenue of USD 2.9 billion. What makes them different is their focus on personal service.
These companies stand out because they really know their destinations well and can make special and real travel experiences. Their personal way of working and focus on special markets help them find their place in the travel industry. They offer unique experiences that bigger companies might miss.
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Recent trends in the customized holiday market across Europe, Asia Pacific, and North America are discussed below. In North America, the United States leads the industry and is expected to progress at a CAGR of 5.6% through 2034. In Europe, the United Kingdom is at the forefront, with a projected CAGR of 6.1% through 2034.
In Asia Pacific, India is emerging as a key player in the industry. It is expected to grow faster than China and Japan, with a CAGR of 18.8% compared to China's 17.3% and Japan’s 17% through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 5.6% |
| United Kingdom | 6.1% |
| Japan | 17% |
| China | 17.3% |
| India | 18.8% |
In the United States, more people want vacations that are easy and hassle-free. They like customized package holidays because these include everything like flights, places to stay, and things to do, making the whole vacation smooth.
Many Americans are now choosing customized holidays within the country. They want to explore different places in the United States and support local businesses. Travel companies are making packages that fit each person's interests and what they like to do. This shows that Americans want unique vacations that are just right for them.
The 5.6% CAGR reflects that the industry in the United States is expanding at a steady pace and staying competitive. It's in a stable phase where growth is steady and meets industry expectations. This stability lets companies keep creating new personalized holiday options that match what travelers want, making sure the industry stays lively and competitive.
In March 2023, 1/5th of people in this country had booked a customized holiday in the past year. During the pandemic from April 2021 to March 2022, people spent less each week on overall holidays because of COVID-19.
But by 2022, more people started using personalized holidays again, and it's expected to be even more popular than before the pandemic. This is indicating a resurgence in demand for personalized and carefully planned travel experiences.
Eco-friendly travel is getting popular in the United Kingdom. Since 2020, more adults and families have been picking camping holidays, with about 4.5 million new campers since the pandemic began.
Even though living costs are going up, camping is seen as a cheaper option for holidays. This customization addresses the specific preferences of campers, contributing to the overall industry growth. As a result, the future projection of the customized holiday market in the United Kingdom indicates a moderate CAGR of 6.1%.
India’s customized holiday market outlook looks bright as it is forecasted to expand at a CAGR of 18.8%. More people are interested in exploring different parts of India. They prefer travel agencies that allow them to customize their tours. This trend is growing because tourists want unique and tailored experiences rather than pre-planned packages.
More people use apps and websites to plan and book custom holidays. This happens because more people have internet and smartphones. Wellness trips like yoga and Ayurveda are becoming popular. Custom holidays often have personal wellness plans. There are chances in special markets like adventure tours, food tours, and heritage tours. Custom trips can fit these interests.
Travel agencies such as Four Wheel Drive India Pvt. Ltd. usually work closely with local vendors and suppliers. This helps them negotiate better deals and pass on savings to their clients. When people book a customized package through these experts, they often get exclusive discounts and offers that might not be available otherwise.
This section goes into detail on the dynamics witnessed in the customized holiday market based on its top segments. In terms of trip type, the solo trip segment is estimated to dominate by holding more than 1/3rd of the industry share in 2024, which is 34.7%. By mode of travel, the airways category is projected to rule by obtaining around 23.2%, in 2024.
The solo trip segment controls the industry primarily because of growing trends in individualism and personalization. Many travelers prefer solo trips to have more control over their itinerary, activities, and pace. This segment appeals to solo travelers seeking unique experiences tailored to their interests without compromising on flexibility.
| Segment | Solo Trip (Trip Type) |
|---|---|
| Value Share (2024) | 34.7% |
Customized holidays allow solo travelers to explore specific destinations or themes that match their preferences. These can include adventure, relaxation, cultural immersion, or niche interests like photography or food tours.
Advancements in technology and online platforms make it easier for solo travelers to research and book personalized trips independently. A desire for self-discovery also backs this trend. It reflects broader societal shifts toward individual empowerment and diverse travel experiences.
The airways segment dominates since it offers convenience and flexibility to travelers. Flying allows people to reach distant destinations quickly. This makes it easier to plan customized itineraries.
| Segment | Airways (Mode of Travel) |
|---|---|
| Value Share (2024) | 23.2% |
Airlines provide a wide range of routes and schedules, giving travelers more choices to tailor their trips according to specific preferences and interests. This segment appeals to those seeking efficient travel options, whether for short getaways or extensive vacations, without being limited by geographic constraints.
Advancements in airline technology and booking platforms have made it simpler for travelers to customize their journeys online. They can select preferred seats and add extra services like meals or baggage options with ease. This convenience, coupled with competitive pricing and frequent flyer programs, further enhances the attractiveness of air travel.
The customized holiday market’s opportunity analysis indicates that companies compete depending on the uniqueness of their travel packages, customer service quality, pricing competitiveness, and the variety of destinations and activities offered. The industry is competitive, with companies trying to attract customers by offering special travel experiences and good prices.
The industry is growing fast, and players are trying to speed up with unique digital marketing strategies. These strategies include social media promotions, personalized email campaigns, influencer partnerships, and targeted online advertisements.
To stay ahead in the game, key players customized holiday industry are putting their entire emphasis on improving customer satisfaction, expanding their range of destinations and activities, and augmenting digital booking platforms.
The customized holiday market competitive landscape shows that top companies are also concentrating on making their packages affordable. Many of them are offering deals and discounts to ensure transparent pricing for customers.
Recent developments in the customized holiday industry show that top players are doing some mergers and acquisitions apart from establishing partnerships. These strategies help companies grow by reaching more customers, improving their services, and using shared resources to make customers happier.
Industry Updates
In terms of traveler profile, the industry is bifurcated into adult and children.
Based on trip type, the industry is divided into solo trip and group trip.
Depending on mode of travel, the industry is categorized into roadways, airways, waterways, and mixed.
When it comes to mode of stay, the industry is trifurcated into hotels, resorts, and villas.
A regional analysis of the customized holiday market is conducted across North America, Latin America, Western Europe, Eastern Europe, South Asia and Pacific, and the Middle East and Africa.
The industry is set to reach a valuation of USD 134.2 billion in 2024.
A CAGR of 13.2% is projected for the industry through 2034.
Opportunities worth USD 463.6 billion by 2034 is estimated.
Solo trip segment to account for a significant industry share in 2024.
India is predicted to be an investment hotspot for investors and stakeholders.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 5.1. Traveler Profile 5.2. Trip Type 5.3. Mode of Travel 5.4. Mode of Stay 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Traveler Profile 6.1. Adult 6.2. Children 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Trip Type 7.1. Solo Trip 7.2. Group Trip 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Mode of Travel 8.1. Roadways 8.2. Airways 8.3. Waterways 8.4. Mixed 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Mode of Stay 9.1. Hotels 9.2. Resorts 9.3. Villas 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. South Asia and Pacific 10.5. East Asia 10.6. Middle East and Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia and Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Sales Forecast 2024 to 2034 by Traveler Profile, Trip Type, Mode of Travel, and Mode of Stay for 30 Countries 18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 19. Company Profile 19.1. Scott Dunn Ltd. 19.2. Rainbow World Tours 19.3. Tours in the City 19.4. Thomas Cook 19.5. TCS World Tours 19.6. Expedia Travels 19.7. REWE Group 19.8. Flamingo Travels 19.9. Redback Travel 19.10. Nest Travels 19.11. Zicasso 19.12. MakeMyTrip 19.13. Classic Journeys
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Customized Holiday Market
