The USA Travel Agency Services Industry is expected to experience steady growth over the next decade. It is projected to grow from an estimated USD 86 billion in 2025 to USD 172 billion by 2035, with a CAGR of 7.2% during the forecast period from 2025 to 2035. This growth is driven by increasing demand for personalized travel experiences, the rise of online travel bookings, and the growing influence of social media in travel planning.
Market Overview
| Attribute | Value |
|---|---|
| Estimated USA Industry Size (2025E) | USD 86 billion |
| Projected USA Value (2035F) | USD 172 billion |
| Value-based CAGR (2025 to 2035) | 7.2% |
This market growth is primarily fueled by the increasing number of travelers seeking customized itineraries, destination experiences, and adventure tours. The emergence of high-end, luxury, and eco-friendly travel options also plays a key role. As consumer spending rises and online travel platforms expand, demand for both domestic and international travel services is expected to increase.
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The following chart highlights the changes in CAGR from the base year of 2024 to 2025, tracking shifts in market dynamics.
CAGR Values for USA Travel Agency Services Industry (2024 to 2025)
It is expected that the USA Travel Agency Services Industry will grow at a CAGR of 4.3% in the first half of 2024, with a slight increase to 4.6% in the second half. The growth rate is projected to further increase to 4.8% in H1 2025 and up to 5.0% in H2 2025 as demand for premium travel packages and unique travel experiences continues to rise.
| Category | Details |
|---|---|
| Market Value | The USA Travel Agency Services Industry is estimated to generate USD 35 billion in 2024, contributing 60% of North America’s total travel services market. |
| Domestic Market Share | Domestic tourists account for 55% of the market, with popular destinations including New York City, California’s coast, and the Grand Canyon. |
| International Market Share | International tourists make up 45%, with key markets including European travelers visiting destinations like Orlando and Hawaii. |
| Key Destinations | Renowned travel destinations include Alaska’s Denali National Park, Florida’s Miami Beach, and New York’s Times Square. |
| Economic Impact | The travel services industry generates billions annually through services like luxury tour packages, guided tours, and travel arrangements for business meetings. |
| Key Trends | Growth in multi-destination vacations, eco-tourism packages, and wellness tourism. Additionally, customized travel experiences such as local food tours are becoming increasingly popular. |
| Top Travel Seasons | Summer and winter dominate as peak seasons, especially in destinations like Florida, which attracts tourists during holiday and spring break seasons. |
The USA travel agency services industry remains a major player in North America, with both domestic and international tourists flocking to popular cities and attractions. Although domestic travel is robust, global visitors, especially from Europe and Asia, remain drawn to destinations like New York City and Miami Beach. They include the following in the trends: eco-tourism for travel, wellness retreats, as well as growing demand for immersion in local culture.
| Date | Development & Details |
|---|---|
| Jan 2025 | Launch of Luxury Adventure Packages: Leading agency American Express Travel introduced a new range of luxury adventure packages, including guided safaris in Africa and tailored eco-tours in Costa Rica. |
| Dec 2024 | Expansion of Wellness Travel: Expedia Group expanded its wellness travel offerings, launching dedicated packages that focus on mind-body rejuvenation at exclusive resorts like Canyon Ranch in Arizona. |
| Nov 2024 | Increased Focus on Family Travel: Travel Leaders Group introduced new family-friendly travel packages, with personalized itineraries including theme parks, kid-focused cruises, and beach resorts. |
| Oct 2024 | New Cultural Experience Tours: Delta Vacations partnered with local cultural institutions to offer exclusive tours, including private art gallery visits and culinary tours in Italy and France. |
| Sept 2024 | Partnership for Sustainable Tourism: The Travel Leaders Group partnered with local governments to create sustainable tourism options, ensuring that eco-friendly travel becomes the norm. |
Full-Service Travel Arrangements Dominate the Market
By 2025, bookings of travel agency services are projected to be 68% full-service arrangements, a trend fueled by consumers demanding convenience, luxury, and reassurance. Full-service packages provide an end-to-end travel experience in which every detail of the trip, from transportation to accommodations to experiences, is planned out.
Abercrombie & Kent and Virtuoso are examples of agencies with this model, offering upscale, all-inclusive vacations. These agencies provide bespoke experiences like individual guided tours of iconic European metropolises or African luxury safaris, where everything-from accommodations to meals, local transfers, and excursions-is meticulously arranged.
The beauty of full-service arrangements is the convenience that they provide. Travelers, especially wealthy ones and busy executives, have a tendency to want to eschew the bother of arranging every aspect of their trip. Instead, they seek out travel professionals who can arrange all logistics so that each element of their vacation is hassle-free and seamless.
The services provide travelers the chance to concentrate on the enjoyment of their experience without having to stress over coordinating complicated itineraries. For instance, a family planning a high-end holiday in Italy might choose a full-service package, where their travel agent coordinates everything from flights and airport transfers to private museum and vineyard tours.
Furthermore, the packages usually are accompanied by customized itineraries that fit the personal interests and preferences of the traveler. From honeymoon to a family holiday to an anniversary tour, full-service arrangements allow the clients to organize their travel experience according to their requirements, providing a very personal and memorable experience.
As the demand for such services keeps growing, more tourists are looking for this kind of luxury and comfort, and thus full-service bookings become the go-to option for travelers who want to experience a premium, hassle-free travel experience.
Independent Travelers Lead the Tour Type Segment
Independent travel is projected to represent 50% of the USA Travel Agency Services Industry in 2025. This development indicates a sharp move toward autonomy and customized travel experiences. Independent travelers enjoy planning their own schedules, which means they can experience destinations on their own terms without the rigidity of pre-booked tours. They appreciate having the freedom to make changes in real-time so that their experience is one-of-a-kind.
Travel companies that cater to this demographic, such as Intrepid Travel, provide a combination of guided tours and self-directed experiences, the best of both worlds in terms of independence and quality information. These tours may include pre-booked accommodations, transportation, or outings, but leave large portions of the trip up to the traveler to choose how and where they go. This option appeals to those wanting a mix of structure and independence, ensuring they see key sites but with plenty of flexibility to immerse themselves in local culture and unforeseen adventures.
A traditional example of independent travel is single individuals or couples going to remote places like the Galápagos Islands. While traveling on islands might not be convenient, independent travelers have the option to enjoy guided tours for particular journeys (such as animal discovery) and still have flexibility to choose daily itineraries. This model is ideal for travelers who would like to personalize their journey based on their interests, whether hiking through national parks, dining at local restaurants, or interacting with locals.
Independent travel offers a deep sense of empowerment and discovery. These travelers seek authenticity-whether that is in the form of outside-the-box experiences, local encounters, or happy accident adventure. For agencies, providing bespoke options that mix expert guidance with flexibility will be key to engaging this growing segment, offering an experience that combines independence with professional assistance when needed.
The USA Travel Agency Services Market is highly competitive with both industry leaders and niche regional players. Large players such as American Express Travel, Expedia Group, and Booking Holdings lead with extensive portfolios covering everything from tailored vacation packages to business travel services.
Regional companies serving niche markets, including luxury travel or corporate accounts, also do well by providing customized services. These niche agencies service upscale clients looking for unique experiences, providing a varied and dynamic environment in the USA travel services industry.
2025 Market Share of USA Travel Agency Services Players
Leading players with significant market share include American Express Travel, Expedia Group, and Booking Holdings, and several other regional and specialized agencies offering bespoke travel experiences and group tours.
The USA Travel Agency Services Industry is expected to grow at a CAGR of 7.2% from 2025 to 2035.
The market is projected to reach USD 172 billion by 2035.
Key drivers include the growing demand for personalized and luxury travel experiences, increasing disposable incomes, and the shift to online bookings.
Key players include American Express Travel, Expedia Group, and Booking Holdings, along with numerous niche and regional travel agencies catering to specific travel needs.
The industry is segmented into Full-service Travel Arrangements and Partial Travel Services.
The market is analyzed by Phone Booking, Online Booking, and In-Person Booking.
Segmentation includes Domestic and International tourists.
The industry includes Independent Travelers, Package Travelers, and Tour Groups.
The market is analyzed by Men, Women, and Children.
The industry includes the following segments based on age: Less than 15 years, 15 to 25 years, 26 to 35 years, 36 to 45 years, 46 to 55 years, 56 to 65 years, Over 75 years.
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USA Travel Agency Services Market
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