As per newly released data, the destination marketing sector is estimated at USD 155.2 billion in 2024 and is projected to reach USD 513.1 billion by 2034, at a CAGR of ~12.7% from 2024 to 2034.
The destination marketing sector is diverse and would nourish the part of the global tourism industry that aims at marketing destinations for tourism purposes. For the year 2023, the sector remained dynamic due to the renewed travel by people to foreign countries after the COVID-19 pandemic and the escalating trends that created competitiveness in destinations to capture traveller interest.
Digital media is an emerging area of importance and a vital tool for reaching the target market, based on innovative strategies using big data and content targeting. Sustainability has therefore emerged as a core marketing strategy as more and more people target environmentally friendly destinations. Collaboration with key opinion leaders and incorporation of other related technologies including VR is increasing destination recognition and attractiveness.
Regionally Asia-Pacific is leading growth due to middle-income tourism, and Europe and North America are dominating due to cultural and infrastructural benefits. Africa and South America’s growth is being noted as they invest heavily in brand awareness and enhancements to their tourism products that could attract global tourists.
Issues include weak economic signals, geo-political risks, and the critical task of managing tourism flows in places now overloaded by tourists. However, due to the currently fast-growing technological environment, the sector focuses on the provision of individualized services and the advancement of little-known travel destinations as a way of sequentially altering the services to be in line with the increasingly distinct clients’ needs.
| Attribute | Details |
|---|---|
| Current Destination Marketing Sector Size (2023 A) | USD 136.9 Billion |
| Estimated Destination Marketing Sector Size (2024 E) | ~USD 155.2 Billion |
| Projected Destination Marketing Sector Size (2034 F) | ~USD 513.1 Billion |
| Destination Marketing Sector Value-based CAGR (2024 to 2034) | ~12.7% |
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In the pre-historic period viz., before 2019, new tours were being created by travel agencies and offered to travellers from throughout the world. Tourists have a strong demand for destination trips. Tourists were drawn to destinations that are well-known for a cause or that are featured in films. The tour operators planned numerous trips that would visit both these and uncharted locales, whetting travellers' appetites for more.
Due to travel restrictions brought on by the COVID-19 pandemic, there was a significant fall in tourists visiting well-known locations around the world. These had a significant adverse impact on destination tourism, but as tourism regained its reputation in the following years, the market appeared to have revived to normalcy.
The forecast period is expected to bring new opportunities for the players operating in the target market. Key factors such as innovation in services offered, easy access to services, and fulfilment of these services are at par with consumer expectations and an increasing number of tourists are opting for such services which in turn is anticipated to boost the destination marketing sector to new levels.
Further, the global destination marketing sector witnessed a compound annual growth rate of 8.9% during the historic period from 2019 to 2023. Further, the target market is forecast to exhibit a CAGR of 12.7% during the forecast period from 2024 to 2034.
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Tour Organizers Highly Focused On Fulfilment Aspect of Tourist's Needs and Wants
Tourists all around the world want to make their tours memorable and enjoyable. Tourists are coveting that their journey will be a good memory and they will remember the tour forever. To give tourists such an experience, travel agencies are planning trips to popular destinations around the globe.
While planning these tours, organizers are working towards eradicating the errors during the tour in order to cater towards tourists’ satisfaction and better experience. To ensure smooth trips, tour organizers are constantly in contact with authorities and other businesses related to the trip so that inconvenience to the tourists is avoided.
While advertising the tours to attract tourists, organizers are making sure that they are not promoting something that is not included in the tour, and all other factors are according to the tourist’s interests. Through such advertisements, there are chances that tourists with similar interests come together and form a familiar tour group for the rest of the tour.
Experience Marketing is a Game-Changing Strategy for Destination Marketing
Tourists nowadays prefer experiences over materials, and if the travels seem like they will be worthwhile and provide them with priceless memories, they're willing to spend money anyway. To sell the tours to such an audience, tourism agencies are advertising them using experience marketing.
Experience marketing uses visual means to give a glimpse of what tourists can experience on tour. The films used may feature locals discussing the region's specialities, hotels, and landmarks that are part of the tour. The use of Virtual Reality and POV videos are the best examples of experience marketing.
Such experience marketing helps build excitement among the tourists and make sure they book the tour after knowing what they are getting by travelling with particular tour organisers.
Marketing Campaigns such as “Incredible India” Changing the Tourist Perception
Long-standing misconceptions about India in the West include extensive poverty, a lack of modern sanitation, and daily conflicts over religion and ethnicity. To remove such misconceptions about India, The Indian Ministry of Tourism launched the "Incredible India" marketing campaign to highlight to Western audiences the country's culture, historic monuments, tourist attractions, and the excitement and energy filled in locals.
Tourism is an ever-growing and bankable market, so India as a developing country is trying to enhance this market and capitalize on its basis for boosting the economy. By promoting positive aspects through tourism, India will work to win the support of Western nations on a global scale.
Increased Destination Marketing in the Bahamas Leading to Growth in Number of Tourists
The Bahamas also markets itself as the ultimate Caribbean vacation spot for luxury and to unwind. The Government had declared a tourism slogan well known as “It’s better in the Bahamas” suggesting that the tours in the region have a relaxing nature.
The Government of the Bahamas introduced television advertisements and websites, specifically to establish the image of the islands providing a relaxing, carefree, full of cultural experience for travellers. In contrast to that, high crime rates are indicating that the actual situation is worse.
The tourism marketing agencies are trying to keep tourists focusing on beaches and azure waters and tropical weather and lifestyle in the Bahamas keeping the drawbacks and unnoticed bad parts away. This managing perception is commonly seen in advertising, as the whole purpose is the sale of the product that is regional tourism.
After Changes in Travelling Media, Mexico Is Promoting Locations All Around the Country
To change common public political and social perceptions of Mexico, including those of poverty, government and law enforcement corruption, petty and organised crime, and drug trafficking, the Tourism Board of Mexico, launched a tourism advertisement campaign in 2010.
This campaign was focused on the USA and Canada, which are Mexico’s North American Free Trade Agreement partners and key customers from a tourism point of view. However, this campaign was shut down in 2019 due to the development of train systems connecting destinations in the country.
Currently, to revive tourism in the region, the authorities are promoting Mexico's beaches, natural landscapes, cultural celebrations, and historical monuments like Mayan pyramids and Spanish churches, with its marketing slogan "Visit Mexico." Under these promotional activities, Mexican tourism is set to undergo a radical transformation.
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Social Media Platforms is the Powerful Advertising Channel for Destination Marketing
Destination marketing involves the promotion of a place or attraction based in a country, and this promotion is usually done using a widespread medium, available in every region in the world. As the Internet and smartphones are commonly used in all countries, tourism agencies and government authorities prefer social media platforms and Internet websites for destination marketing.
Natural and Cultural Attractions Are Commonly Promoted in Advertisements
Destination marketing is focused on the promotion of specific locations in a region, which attract international and local tourists. To make sure that people remember the places and that the advertisement will leave a positive impression on the target audience.
Nature and cultural attractions are usually promoted in destination-specific advertisements. All around the world, there are many cultural and natural heritages, and they serve as the distinctive characteristics that separate places from one another. Destination marketing promotes both the countries and tourism by concentrating on these particular attractions.
For the promotion of tourism at a specific location, there are destination marketing organizations, performing multiple operations with the help of local government authorities. These DMOs get funds from taxes paid by tourists and subsidies provided by the government.
However, these DMOs are seeing a fall in sales since private tour operators along with marketing companies are promoting these excursions more successfully and offering travellers a wide range of options.
For Instance
| Attribute | Details |
|---|---|
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | USD Billion for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; & MEA |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, UK, France, Spain, Italy, Russia, Benelux, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia & New Zealand |
| Key Segments Covered | Advertisement Media, Attraction Type, Tourist Type, Tour Type, and Region |
| Key Companies Profiled | Amadeus Travel Advertising; Accord; MMGY Global; DANA; DCI; Digital Coconut Inc.; OP Worldwide LLC; Sagittarius; VERB; OnlyTravel; Other (as per request) |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The destination marketing sector is valued at USD 155.2 billion in 2024.
The destination marketing sector is currently forecast to grow at a rate of 12.7% during the forecast period.
Amadeus Destination Marketing, Accord, MMGY Global, DANA, DCI, Digital Coconut Inc., OP Worldwide LLC, D BOX Technologies, TheBeGlobal, etc. are the major participants in the destination marketing industry.
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Destination Marketing Market
