The outbound travel market of the UK is poised for strong growth. Expected to rise from a forecasted USD 103.8 billion in 2025 to USD 166.1 billion in 2035, the market is anticipated to register a CAGR of 4.8% over the forecast period of 2025 to 2035. The growth is fueled by rising disposable incomes, a growing demand for international holidays, and more emphasis on sustainable tourism, as well as the mobility introduced by remote working arrangements.
Market Overview
| Attribute | Value |
|---|---|
| Estimated UK Industry Size (2025E) | USD 103.8 Billion |
| Projected UK Value (2035F) | USD 166.1 Billion |
| Value-based CAGR (2025 to 2035) | 4.8% |
Outbound travel from the UK continues to thrive, with a strong interest in both leisure and business travel. Low-cost flight options, increasing connectivity with destinations globally, and evolving holiday packages tailored to diverse traveller preferences have been key drivers of this growth.
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The following chart highlights the growth trends for the UK outbound travel market between 2024 and 2025.
CAGR Values for UK Outbound Travel Market (2024 to 2025)
It is anticipated that the UK outbound travel market will witness a CAGR of 3.9% in the first half of 2024, increasing slightly to 4% in the second half. This upward trajectory is expected to continue into 2025, with a projected 4.6% CAGR in H1 2025 and rising to 4.8% in H2 2025 as British travellers increasingly seek new global destinations and experiences.
| Category | Details |
|---|---|
| Market Value | The UK outbound travel industry is expected to generate USD 99.4 billion in 2024, contributing 30% of Europe’s total outbound tourism market. |
| Domestic Market Share | 65% of outbound tourism is domestic, with travellers heading to nearby destinations like France, Spain, and the Channel Islands. |
| International Market Share | UK tourists represent 35% of outbound tourism, with significant travel to destinations such as the US, Australia, and Italy. |
| Key Destinations | Popular destinations include Paris (France), New York (USA), Sydney (Australia), and Rome (Italy). |
| Economic Impact | The UK outbound travel sector contributes significantly to global economies, particularly through tourism-related spending on hotels, dining, and excursions. |
| Key Trends | Sustainable tourism, wellness retreats, and luxury travel to remote destinations are increasing. Digital nomads are also shaping the future of travel. |
| Top Travel Seasons | The summer months are peak travel times, especially for destinations in Europe. Winter holidays see a surge in travel to the Caribbean and Southeast Asia. |
The UK outbound travel industry is a significant global tourism spender, and there are a number of driving factors behind this. One of the biggest factors has been enhanced flight connections, with UK airlines such as British Airways and budget airlines EasyJet and Ryanair providing greater frequency and accessibility of flights to major destinations. Budget airlines have opened up travel to a wider population, with more UK residents now able to travel regularly without spending a fortune.
The relaxation of visa controls, particularly within the European Union, has also boosted the popularity of visiting neighboring nations, and short-haul vacations are made more convenient and accessible. Thus, places such as Paris, Barcelona, and Amsterdam remain major drawcards for UK holidaymakers in millions each year. Moreover, the shifting alliances among the British carriers and global destinations, such as the opening of new direct flights to Asian and North American cities, have contributed further to the UK's status as a leading global tourism market.
| Date | Development & Details |
|---|---|
| Jan 2025 | Eco-Friendly Travel Packages - Leading agencies such as Trailfinders launched new eco-conscious travel packages to destinations like Costa Rica and Iceland, offering carbon offset options. |
| Dec 2024 | New Flight Routes to Asia - British Airways introduced direct flights from London to Ho Chi Minh City, catering to UK travellers exploring Southeast Asia. |
| Nov 2024 | Luxury Train Journeys - The Belmond brand launched a new luxury train route through Italy, attracting high-end tourists seeking a slower pace of travel. |
| Oct 2024 | Digital Nomad Programs - Companies like Workaway introduced bespoke travel packages targeting remote workers in locations such as Lisbon and Bali. |
| Sept 2024 | Family Travel Packages - Thomas Cook introduced new family-oriented itineraries to the Mediterranean, including family-friendly tours and kid-centric experiences in Greece and Spain. |
Day Trips & Local Gateways Lead the Segment
In 2025, Day Trips & Local Gateways are expected to make up 30% of the UK outbound travel market. This category caters to travelers looking for shorter, more spontaneous trips to nearby destinations, often driven by the desire for quick escapes during long weekends or public holidays. Unlike more elaborate vacations that require significant planning, day trips and local getaways offer ease and flexibility, making them a preferred choice for those with limited time but a desire for a change of scenery.
Common places of travel for British people who are interested in local travel include urban destinations such as Paris and Brussels, which can be reached by Eurostar train with ease, as well as seashore areas such as Normandy in France or the towns of the Netherlands. For example, a family may take a weekend trip to Bruges, exploring the charming medieval streets, enjoying a canal tour, and sampling local Belgian chocolates, all without the hassle of long flights. The convenience of short travel times and the ability to explore new locations without the complexity of long-haul travel makes this category particularly appealing.
Furthermore, the surge in interest for self-drive trips to nearby countries, such as a road trip through Northern France, has contributed to the growth of Day Trips & Local Gateways. The ease of access by ferry or the Channel Tunnel to destinations like Brittany or Normandy has made these regions attractive for quick getaways, allowing travelers to experience French culture, food, and history without straying too far from home.
Package Tour Travellers on the Rise
In 2025, package tour travellers are projected to represent 33% of the UK outbound travel market. This category remains particularly popular among families, senior citizens, and those who prioritize a hassle-free, structured holiday experience. Package holidays often bundle flights, accommodation, transfers, and excursions into one convenient package, allowing travellers to fully relax and enjoy their vacation without the worry of planning every detail. This makes the segment especially appealing to those with limited time or experience in navigating international travel logistics.
The Mediterranean continues to be the top destination for package holidays, with countries like Spain, Greece, and Italy leading the charge. These destinations are renowned for their all-inclusive resorts, family-friendly amenities, and dependable weather, making them ideal for families seeking a stress-free getaway.
For example, a family heading to Majorca can enjoy a seamless experience where the travel agency handles everything from flights to guided tours of local attractions. Families may visit famous beaches, explore bustling markets, or discover historical landmarks, all while benefiting from the convenience of pre-arranged activities and tours that ensure they don't miss out on key experiences.
This ease of access and organization is what makes package holidays so attractive for families with young children or elderly members who prefer structured itineraries.
Moreover, the rise of online booking platforms like TUI and Jet2holidays has greatly facilitated the growth of package tours. These platforms allow customers to easily compare and book vacation packages that cater to a wide variety of travel preferences. Whether it is a seaside break in the Canary Islands, a spa break in the Greek islands, or a break with adventure in Cyprus, these tour operators provide personalized packages to suit varied preferences. The marriage of value, ease, and variety of destinations has made package holidays a market leader in the UK outbound travel industry.
The UK outbound travel market is competitive, with major international players like TUI Group, Jet2holidays, Thomas Cook Grou leading the charge. These large companies dominate through strong online booking platforms, offering a range of travel packages that include everything from budget to luxury options. Niche operators like The Luxury Travel Company and Exodus Travels cater to specialized markets, offering high-end travel experiences or adventure holidays for active travellers. These smaller agencies have gained ground by focusing on tailored, boutique experiences that larger operators may not offer, particularly in the realms of luxury, adventure, and sustainable travel.
2025 Market Share of UK Outbound Travel Industry Players
In the UK outbound travel industry, leading players include TUI Group, Jet2holidays, Thomas Cook Grou. Niche agencies such as The Luxury Travel Company (8%) and Exodus Travels (7%) are seeing growing demand due to their specialized offerings. Smaller players catering to specific traveller types, including solo adventurers, wellness enthusiasts, and eco-tourists, account for the remaining 29%.
The UK outbound travel market is projected to grow at a CAGR of 4.8% from 2025 to 2035.
The market is expected to reach USD 166.1 billion by 2035.
The key drivers include the rise in sustainable travel options, increased interest in experiential holidays, and growing digital nomad trends.
Leading players in the UK outbound travel market include TUI Group, Jet2holidays, Thomas Cook Group, along with niche operators like The Luxury Travel Company and Exodus Travels.
The industry is segmented into Day Trips & Local Gateways, Museums, Pilgrimages, Religious and Heritage Tours, and Others.
The market is analyzed by Independent Traveller, Tour Group, and Package Traveller.
The industry is segmented into Online Booking and Offline Booking.
Segmentation includes 0 to 20 Years, 21 to 40 Years, 41 to 60 Years, and 60 Above.
The industry includes Domestic and International tourism.
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UK Outbound Travel Market
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