The global staycation industry is projected to reach a valuation of USD 943.7 million by 2035, growing at a CAGR of 8.7% from 2025 to 2035. The industry growth is driven by several factors, including shifting consumer preferences towards local tourism and the convenience of spending vacation close to home. Destinations such as Scotland, Northeast England, and Southwest England have observed a surge in staycation bookings, wherein travelers opt for local retreats over international trips.
On the other hand, places like South Carolina, and Orlando in the United States, have been trending as staycation spots in the recent years. These locations offer a range of attractions and amenities that appeal to local travelers. Additionally, the rise of alternative accommodations, such as farm stays, cottage rentals, and eco-lodges which provide travelers with diverse options for local vacations, are driving the staycation industry.
| Attribute | Details |
|---|---|
| Current Staycation Industry Size (2024A) | USD 379.2 Million |
| Estimated Staycation Industry Size (2025E) | USD 410.3 Million |
| Projected Staycation Industry Size (2035F) | USD 943.7 Million |
| Value CAGR (2025-2035) | 8.7% |
| Market Analysis of Top Players Share in 2024 | ~35%-40% |
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The global staycation industry is growing steadily, expanding at a CAGR of 7.4% from 2020 to 2024. The industry is expected to reach an estimated valuation of USD 943.7 million by 2035, as more travelers prioritize local vacations over international trips.
Several factors driving the industry expansion include rising international travel costs which is encouraging people to explore nearby destinations instead of flying abroad. Besides, flexible work arrangements that encouraging professionals to blend leisure with remote work, have been fueling the demand for local retreats. For instance, in Australia, city dwellers are increasingly visiting the Blue Mountains and Mornington Peninsula for short getaways. Similarly, in India, a large number of travelers are booking stays in Jaipur and Coorg for quick escapes. The local hotels and resorts are welcoming to this trend and adapting to the new traveller trends by enhancing their offerings.
To lure more visitors, luxury properties are designing exclusive staycation packages that include spa treatments, gourmet dining, and private guided experiences. On the other hand, mid-range and boutique hotels are tailoring their services to remote workers and weekend travelers, particularly in business hubs such as Dubai and Singapore. Besides, eco-friendly retreats in Tuscany and the Scottish Highlands are attracting nature-focused travelers by investing in sustainable tourism initiatives.
| Year | Global Outbound Tourism Industry vs. Global Staycation Industry |
|---|---|
| 2020 | Outbound tourism declined sharply as international travel restrictions and border closures halted global tourism. Major travel hubs like Paris, Bangkok, and New York saw record-low footfall. Airlines, luxury resorts, and travel agencies suffered financial losses, leading to bankruptcies. Meanwhile, the staycation industry grew rapidly as travelers opted for local vacations. Urban hotels in cities like London, Singapore, and Tokyo offered discounted long-term stays. Airbnb recorded a surge in domestic bookings, and national parks saw increased footfall from local visitors. |
| 2024 | Outbound tourism reached USD 1.9 trillion, as relaxed travel regulations and rising disposable incomes fueled demand. Destinations such as the Maldives, Dubai, and Bali attracted millions of international tourists. Luxury experiential travel, including space tourism and ultra-exclusive getaways, gained traction. At the same time, the staycation market reached USD 379.2 billion, sustained by flexible work arrangements and a preference for shorter local breaks. Resorts like Aman and Six Senses expanded domestic wellness retreats, while boutique city hotels introduced curated urban experiences for remote workers. |
| 2025 | The outbound tourism industry is set to surpass USD 2.4 trillion as AI-driven travel personalization, seamless visa policies, and rising demand for adventure tourism drive growth. Countries like Saudi Arabia and Japan continue investing in mega-tourism projects. The staycation industry will expand to USD 410.3 billion as eco-friendly urban resorts and curated cultural experiences attract more travelers. Cities like Berlin and Sydney promote ‘smart tourism,’ incorporating AR-driven local tours and sustainable city retreats. |
| 2035 | Outbound tourism will exceed USD 5 trillion as hyper-personalized AI-led itineraries, advanced aviation technologies, and intercontinental high-speed rail networks redefine travel. Space tourism and underwater luxury resorts will emerge as premium offerings. The staycation market will cross USD 943.7 billion as urban eco-tourism, hyper-personalized local vacations, and AI-generated experiential trips become mainstream. Virtual tourism, combined with short-stay physical packages, will reshape city tourism. |
The global outbound tourism industry and the staycation market have evolved significantly, shaped by changing consumer behavior, economic conditions, and technological advancements.
In 2020, outbound tourism faced its worst crisis due to the COVID-19 pandemic. Countries like Thailand, which depended on international tourists, saw their GDP shrink. Airlines such as Virgin Australia collapsed, while global hotel chains like Marriott shut down several properties. Meanwhile, the staycation industry grew rapidly, as travelers in the USA and UK. shifted to local getaways. Hotels in Tokyo and Paris converted rooms into workcation spaces, helping them sustain revenue.
The Middle East,Saudi Arabia's NEOM development in the lead, became a new luxury tourism destination. The staycation market, in turn, boomed as large hotel companies brought in hyper-localized offerings. For instance, the Shangri-La group rolled out weekend 'Cultural Capsules' in Singapore with special heritage tours within city boundaries. Dubai’s AI Travel Concierge service will curate real-time vacation plans based on biometric preferences. At the same time, the staycation industry will reach USD 340 billion, with boutique hotels using VR-enhanced historical tours. The VR Versailles Experience in France will allow visitors to "travel back in time" without leaving their city.
By 2035, outbound tourism will expand further as travelers explore space tourism and underwater luxury stays. Meanwhile, the staycation market will integrate AI-generated vacations, enabling city dwellers to experience multiple cultural themes without traveling abroad. Both industries will continue to thrive but will cater to different traveler segments—one driven by global wanderlust, the other by convenience, sustainability, and hyper-local experiences.
| Website | Estimated Market Share |
|---|---|
| Booking.com | Captures approximately 25% of the market. |
| Airbnb | Holds around 20% of the market, specializing in unique accommodations. |
| Expedia Group | Controls nearly 15% of the market through platforms like Expedia, Vrbo, and Hotels.com. |
| TripAdvisor | Secures about 10% of the market by offering travel reviews and recommendations. |
| Agoda | Commands around 5% of the market, with a strong presence in Asia. |
| Others | Comprise approximately 25% of the market, including various regional and niche platforms. |
Booking.com dominates the staycation market by offering extensive hotel listings and competitive deals, capturing around 25% of the market. Airbnb follows closely, attracting 20% of travelers with its unique accommodations and alternative stays. Expedia Group secures 15% of the market by managing multiple travel platforms, including Expedia, Vrbo, and Hotels.com. TripAdvisor engages about 10% of the market by providing trusted travel reviews and user-generated recommendations. Agoda has a 5% market share, mostly due to its presence in Asia, with sole-source deals and region-specific promotions. The other local and specialty websites combined take 25% of staycation travelers, meeting specific travel needs.
Online travel agencies (OTAs) earn significant revenue in staycations by using technology, price volatility, and hyper-localized experiences. OTAs function as intermediaries between guests and housing, taking commissions for each reservation while upselling ancillary services.
Booking.com, for example, generates revenue with staycation bundles personalized from customers' browsing activities. The system applies AI-driven pricing algorithms that real-time dynamically change room rates to make it competitive for hotel partners and also for customers. Booking.com rolled out "Workation Bundles" in 2023 for New York and London, with which remote employees can book protracted stays for a discounted tariff. These specifically designed packages brought up mid-week occupancy levels within city hotels and yielded more revenue on a commission-based model for the OTA.
Airbnb is taking advantage of the staycation phenomenon by selling distinctive, experience-based stays. The company makes money through service charges and featured listings. Airbnb introduced "City Hideaways" in Tokyo, which included centrally located apartments with entertainment systems and work-friendly arrangements in the room. By advertising these listings as substitutes for traveling abroad, Airbnb boosted domestic reservations, earning greater transaction fees.
Expedia Group gets the most revenue out of a booking by combining rooms with in-market activities. In Paris, Expedia launched the "Stay & Explore" package, including private visits to secret speakeasies and night tours of museums. Through collaboration with in-market businesses, Expedia gained not only from hotel commissions but also a cut of activity reservations.
TripAdvisor makes money on staycation content via sponsored placement and premium listings. When tourists search for "best weekend getaways near me," TripAdvisor positions paid partner hotels in premium positions at the top of search results, raising their visibility and revenue. Using data-driven marketing, special offers, and key partnerships, OTAs keep adding new revenue streams. Their capacity to shape consumer behavior and create demand-based pricing makes OTAs essential in the emerging staycation market.
Solo travelers generate sizeable revenue within the staycation market through adopting convenience, sustainability, and ultra-personalized experiences. Spending patterns of such travelers drive hotel stays, food, local amenities, and leisure activities, establishing them as an important driver for the market growth.
Millennials and Gen Z tourists add heavily through demanding special and engaging staycation activities. Young professionals in Los Angeles reserve luxury boutique hotels that provide rooftop yoga and digital detox retreats. Such properties demand high rates, leveraging full occupancy and incremental revenues from wellness packages. Properties incorporating hyper-local activities, including San Francisco's "Tech-Free Weekends" at nature-friendly lodges, capture remote workers searching for mindfulness retreats, providing recurring revenues.
High-margin revenues are created by luxury staycation travelers who opt for exclusive, service-dense accommodations. At London's The Connaught, a weekend staycation promotion was introduced with private Michelin-starred dining and chauffeur-led city tours. High-end travelers, not willing to settle for anything less than luxury, reserve such activities at high charges, augmenting direct revenues of hotels as well as service-based commissions for travel agencies.
Remote workers and digital nomads prolong their staycations into "workations," maintaining long-term reservations. In Singapore, co-living accommodations such as lyf Funan offer combined workspaces and social areas, appealing to professionals who value flexible, longer stays over conventional leases. These visitors guarantee consistent revenue for hospitality companies, while local enterprises gain from their extended expenditure.
In the future, personalization through AI will propel staycation revenues even further. Hotels will leverage guest data to provide personalized add-ons such as AI-curated itineraries, automated wellness services, and real-time local event suggestions. Sustainability-conscious travelers will further fuel demand for staycations that are carbon-neutral, and this will lead to eco-hotels and green-certified hotels increasing their pricing power. As solo travelers value hyper-local, convenient, and immersive experiences, the staycation sector will keep changing, promoting high-value, long-term revenue streams across several industries.
The staycation market in the United States remains on the rise, fueled by increasing travel expenses, flexible work schedules, and changing consumer trends. Urban areas and rural regions have modified their products to accommodate travelers who seek short, regional vacations rather than conventional international getaways.
City hotels have witnessed an uptick in staycation reservations. At New York City's The Plaza, the hotel introduced a bespoke "City Escape" package, with private art gallery tours and in-room meals by Michelin-starred chefs for guests. Mid-week occupancy levels shot up by 20% and drew locals looking for luxury without the distance of travel. Also, Chicago's Peninsula Hotel saw weekend bookings increase as residents chose to spend staycations at spas rather than traveling to wellness retreats in Arizona or California.
Boutique resorts and vacation rentals have also capitalized on the staycation trend. In California, Napa Valley’s high-end vineyards introduced “Local Luxe” stays, where nearby residents enjoy private wine tastings and chef-led farm-to-table dining without needing a full vacation. This strategy not only boosted regional tourism but also increased winery sales by 30% through exclusive packages.
Staycations outside have also become popular. National parks like Yellowstone and the Great Smoky Mountains experienced record visits, as Americans made road trips and nature escapes a priority. Glamping operations like Under Canvas increased their presence around these parks, providing luxury tents with Wi-Fi and gourmet food, catering to city slickers who wanted adventure without having to give up comfort.
The staycation industry in the UK has experienced strong growth, driven by rising international travel costs, climate-conscious tourism, and an increased preference for short, local breaks. British travelers are choosing destinations within the country that offer luxury, adventure, and cultural experiences without the hassle of long-haul flights or passport requirements.
High-end rural retreats have experienced growing bookings. Barnsley House in the Cotswolds, for instance, introduced private garden dining and spa treatments based on traditional English herbalism as part of exclusive weekend wellness packages. This strategy lured London and Manchester-based urban professionals, growing off-season occupancy by 25%. Gleneagles Hotel in Scotland revamped its staycation packages to offer falconry experiences, whisky-tasting masterclasses, and heritage railway tours, targeting home-based travelers interested in experiential activities.
Coastal resorts have also ridden the staycation wave. Cornwall's Watergate Bay Hotel launched a "Seaside Reset" package, providing locals with off-season-only access to surf lessons and Nordic-style outdoor hot tubs. This move helped to promote year-round bookings and secondary spending in local restaurants and shops. Norfolk's Wells-Next-the-Sea meanwhile expanded its eco-lodge provision, appealing to families looking for sustainable holidays while generating demand for guided wildlife tours.
City-centered staycations have also succeeded. London's The Ned geared up its accommodations to appeal to local visitors by pairing overnight stays with private concerts, members' club membership, and handpicked cultural experiences. This change helped maintain earnings during traditionally quiet travel months. Manchester's Kimpton Clocktower Hotel, on the other hand, launched "Creative Weekend Retreats," wherein visitors could participate in artist-led workshops and cookery masterclasses.
As UK travelers continue seeking convenience and affordability, the industry will invest further in AI-driven personalization, eco-friendly accommodations, and experiential tourism. Staycations are no longer just an alternative but a mainstream travel choice reshaping domestic tourism in Britain.
The global staycation industry continues to expand as hospitality providers enhance accommodations, integrate new technology, and create personalized guest experiences. Leading players, including Marriott International, Airbnb, Hilton Hotels, and Accor, actively shape the market by introducing innovative offerings that cater to increasing demand for local vacations.
Some of the key developments in the staycation industry include:
| Attribute | Details |
|---|---|
| Forecast Period | 2025-2035 |
| Historical Data Available for | 2020-2024 |
| Market Analysis | USD Million/Billion for Value |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia; East Asia; Oceania; MEA |
| Key Segments Covered | Booking Agency, Age, Visit Purpose, Demography, Booking Channel, Tour Type, Tourism Type |
| Key Companies Profiled | Airbnb; Booking.com; Vrbo; Club Mahindra Holidays; Sterling Holiday Resorts Limited; Sinclairs Hotels Limited; Hoseasons; Great Wolf Lodge; Margaritaville Lake Resort; Marriott International |
The global staycation market is valued at approximately USD 379.2 billion in 2024. Analysts expect it to reach USD 410.3 billion in 2025 and grow to around USD 943.7 billion by 2035, reflecting an estimated CAGR of 8.7%.
Increasing travel costs, flexible work arrangements, and the demand for short, local vacations are driving the staycation market's growth.
Leading staycation providers include Airbnb, Booking.com, Hilton Hotels, Marriott International, Accor, Club Mahindra, Vrbo, and IHG Hotels & Resorts. These companies innovate with personalized staycation experiences, bundled local tours, and AI-driven travel recommendations to capture the rising demand for domestic and city-based vacations.
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Staycation Market
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