As per the latest findings of Future Market Insights, global virtual tourism expected to be 12.3 Billion by 2023. In the long term, virtual tourism estimated to reach around 26.0 Billion in 2033.
Virtual tourism serves as a way to explore the destination, travel venues, and attraction sites without actually visiting the site. Virtual tourism brings amazing experience, which is made possible due to the advancement in technology. Virtual tours bring a new form of marketing that brings the opportunity for tourists to experience tours in a visual environment.
With the rising adoption of smartphones, and various technological advances in terms of tours, the experience of virtual tours holds significance and it is driving the tourism market. Since virtual tours can be experienced through smartphones and big screens, more and more people are choosing them these days.
The implementation of Augmented Reality (AR) is bringing new growth opportunities for the virtual tourism sector and with the aid of contemporary smartphones, virtual tours are bound to expand on a larger scale and extended to reach more people.
According to study and analysis, there are issues with the virtual tourism sector that need to be addressed and improved, with a focus on how technological advancements help advertise and grow the market.
| Attribute | Details |
|---|---|
| Estimated Virtual Tourism Market Size (2023E) | US$ 12.3 Billion |
| Projected Market Valuation (2033F) | US$ 26.0 Billion |
| Value-based CAGR (2023 to 2033) | 7.8% |
| Collective Value Share: Top 5 Countries (2022A) | 5% to 10% |
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Digital innovations in the tourism sector are creating new pathways towards having an ultimate experience of various tour types. Virtual tourism is emerging as an alternative to physical tourism where the consumers can have an actual preview of tourist destinations and attractions and is further emerging as potential for value offerings, it can bring.
Virtual reality (VR) in virtual tourism gives interactive navigation of the place, it brings new opportunities to the virtual tourism sector VR changes the way the future of tourism seen, and it has revolutionized consumer experience on a budget. With rising experiences in virtual tourism and the impact of covid-19 pandemic in 2020 virtual tourism came across a major boost as a curiosity to experience and explore was there despite the travel restriction.
Virtual tourism at the time of Covid-19 came across as a way for people to escape boredom and Isolation. Over time, there was an increase in online bandwidth where various features were unlocked to make the overall tour experience more attractive. While modern digital marketing techniques bring value to the virtual tourism market, 360 videos with virtual reality are taking another leap. The origin of the modern virtual tour offered a technical showcase that combined with real-time benefits.
With the modern capabilities of Virtual reality, technological advances bring a powerful medium for virtual tours where businesses are bringing advantage to modernize digital marketing for bringing new possibilities to add to the experience of customers.
While the local and central government is taking various initiatives to promote virtual tourism, infrastructural development, and promotional strategies will be given priority as virtual tourism does fall on major shortcomings related to technology which needs to be boosted for the growth and development of the virtual tourism sector.
The market for virtual tourism is expanding due to increase in the use of virtual reality by the real estate industry to market their properties and improve user experience, as well as an increase in its use for advertising and promotions. However, virtual tours lack an extensive and impactful user experience due to a lack of familiarity and slow adoption of virtual reality, which is limiting market growth while it is still in the early stages of development. With the increase in internet connectivity and technological advancements, there are undoubtedly many opportunities for the virtual tourism sector to grow and advance.
With the immense growth in the virtual tourism industry, there is an increase in the usage of consumer electronic devices and which is fueling the growth of the virtual tourism sector. While there is a misunderstanding virtual tours are expensive to set up and typically involve more work, which is also the reason for their slow adoption, this is not actually the case. For example, if the plugin WPVR is used, single 360-degree panoramas could bring in the view of the uploaded images and it could link them turning into a proper virtual tour.
Virtual reality is bringing to its users, an undeniable personalized experience catering to specific needs for experiences related to tours and which is made possible by technological advancements that allow the scope for customization and innovation in terms of virtual tour experiences.
For instance, VR Vision Inc. provides custom-developed applications, software experiences, and mobile apps by conceptualizing the idea of VR into execution with a vision of pushing the brand objective further in a meaningful manner. Custom development of VR applications brings the entire experience into a 360-degree environment, which not only helps the user in having the tour experience but also helps in planning their trip and the decision-making process.
Principal Consultant
| Country | Greece |
|---|---|
| Market Share (2023) | 24.5% |
| Market Share (2033) | 24.0% |
| BPS Analysis | (-) 50 |
| Country | Italy |
|---|---|
| Market Share (2023) | 18.6% |
| Market Share (2033) | 19.9% |
| BPS Analysis | (+) 130 |
| Country | India |
|---|---|
| Market Share (2023) | 20.3% |
| Market Share (2033) | 21.0% |
| BPS Analysis | (+) 70 |
Initiatives by Greece Tourism Authority to Promote Virtual Tourism
Greece is one of the countries where tourism remains most impacted by COVID-19 as it altogether shut global tourism and with the undeniable foreseeable future as the whole tourism industry sat idle, facing major losses and shutting down, virtual tourism came as a rescue and Greece was among the top country offering interactive websites to make tourism in the country intact.
For instance, Greece's tourism authorities launched the greecefromhome.com site in corporation with google to promote and enhance virtual tourism with the sole motive that, the mind of the user can travel even when at home. Sites such as historical sites, archeological sites, museums, beaches, music, and the local traditions with the experience of sailing, hiking rafting, and more at the safety of home. Earlier as an initiative, virtual visits were not bringing revenue but that is when Greece started commercializing it digitally by bringing various technological advancements into implementation and this will keep on growing further.
Installation of touchscreen multimedia for interactive communication contributed to virtual tourism development
Italy is among the country, which brings cultural diversity to the tourism industry with its historical and geographical uniqueness, and in addition to numerous historic centers virtual tours emerged as an integrated part of tourism. There have been various institutes that are involved in formulating virtual visits to national artistic heritage, the installation of Interactive touchscreen multimedia for interactive communication while experiencing virtual tours with the provision of mobile applications to enjoy territorial tourism with the advance set up of multimedia engine for videos images, apps held as a unique distribution point for the users.
The formulation of a reliable estimate for national artistic heritage has undergone a substantial dispersal. Italian cities are thus taking the opportunity to schedule tours, enable communication with a tour operator, and bring access to all the information with the emergence of all these technical advances, the number of tourists experiencing virtual tourism is increasing.
India implementing digital experience for virtual tours and working on connectivity enhancement
India is one of the nations that provides a rich cultural experience with its diversified culture, traditions, and heritage sites. By developing virtual tour concepts, the Indian tourism industry has taken steps to promote Indian tourism in the online market. The ministry has already begun the process of working with organizations to improve design and alter the virtual tourist sector in order to further this. In the virtual tourism market, India is also linking consumers to tourist locations for leisure, medical tourism, adventure, wildlife, and many more.
The development of platforms for these services that have a clear travel structure is also encouraged by the Indian government. For instance, Rajasthan Studio has taken the lead in promoting virtual tourism by introducing the concept of identifying unique travel experiences where visitors can virtually explore well-known Indian locations. Along with it, the government routinely launches new efforts to promote all forms of virtual tourism, including wellness, cultural, and spiritual tourism. In order to improve the online experience when taking a virtual tour, the government is also striving to improve connectivity in various locations.
Students between the age group of 18- 34 prefer Virtual Tourism and geological sites visit more
While virtual tourism is something that one can experience, be it any age group, the age group between 18-34 prefers to have a virtual tour experience more. The major reason behind the preference is having snippets of virtual experience before going through the entire tour experience, be it any destination.
Virtual sites are rather easier to book and experience at the ease and comfort of your home and based on the site and the tour type someone prefers; it creates an exceptional experience for the users. In the time of COVID-19, virtual tourism not only sustained the entire tourism industry but it kept growing with all the technological advances and the Internet is making this easier for users to explore, decide and book the tour and have a great experience while on the virtual tour.
With the advancement in digital apps for travel bookings, online channels are preferred more
The whole concept behind virtual tourism is to have an experience at ease and comfort while watching any heritage sites, or exploring the unexplored. In Virtual Tourism, there has been significant growth since the time of COVID-19 and since then the number of tourists is only rising. With the advancement in technology, it is easier now to have an experience firsthand before going through the actual virtual tour.
While virtual tourism gives the ease of booking and exploring the entire experience at home and the ease of attending the tour also is a seemingly fair concept for refund and cancellation. Therefore, for virtual tourism, users are generally reliable on themselves instead of going through with the process of booking by an agent.
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In a highly competitive environment, many companies in the market are providing a variety of techniques to corner the market. Connect systems have been developed with businesses like McLennan to optimize data in real-time, thereby replacing all handwritten data and preventing the chaos that was prior to this.
Additionally, the pace of support channels for suppliers is picking up, and they are successfully collaborating with direct suppliers and major market participants to advertise and promote tourism.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | US$ Million/Billion for Value |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Germany, UK, France, Spain, Russia, India, China, Japan, Malaysia, Singapore, Australia, UAE, KSA, Italy, Qatar, Oman, RoW |
| Key Segments Covered | By Direct Suppliers, By Indirect Suppliers, By Number of Bookings(Age, Demographic, Tour Type, Booking Channel) |
| 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 United States market is poised to lead with almost 4.6% CAGR until 2023.
The global market value is estimated to be near US$ 12.3 billion in 2023.
The digital apps segment garnered over 50% of the total demand in 2022.
McLennan is a leading service provider in current years.
Global players are focusing on Greece as it may acquire a 24.5% market share in 2023.
1. Executive Summary
1.1. Global Market Outlook
1.1.1. Who Is Travelling?
1.1.2. Travel Gross Bookings
1.1.3. Travel Gross Revenue
1.1.4. How Much Do They Spend?
1.2. Evolution Analysis
1.3. FMI Analysis and Recommendations
2. Growth Parameters in
2.1. Surge in Virtual Reality in Real Estate for Commercialization, Driving the Growth
2.2. Personalized and Customized experience for Virtual Tours on the rise
2.3. Installation of Touchscreen Multimedia for Interactive Communication contributing to Development
2.4. Implementing Digital Experience for Virtual Tours and Working on Connectivity Enhancement
3. Supply to Demand: Today’s Travel Distribution Network
3.1. Direct v/s Indirect Distribution
3.2. Travel Gross Revenues, by Channel, 2022
3.2.1. Supplier Direct
3.2.2. TMC
3.2.3. Tour Operator
3.2.4. OTA
4. Direct Suppliers in
4.1. Total Supplier Market, Share by Segment (%), 2022
4.1.1. Airlines
4.1.2. Hotel Companies
4.1.3. Tour Operators
4.1.4. Government Bodies (*Note – Excluding Tour Operator)
5. Indirect Suppliers in
5.1. OTA (Online Travel Agency)
5.2. Traditional Travel Agencies
5.3. TMC's (Travel Management Companies)
5.4. Corporate Buyers
5.5. Aggregators
6. Number of Bookings, 2022
6.1. By Age
6.1.1. Under 18
6.1.2. 18-35
6.1.3. 36-45
6.1.4. 46-55
6.1.5. Over 55
6.2. By Demographic
6.2.1. Male
6.2.2. Female
6.2.3. Kid
6.3. By Booking Channel
6.3.1. Online Booking
6.3.2. Booking via Agent
6.4. By Tour Type
6.4.1. 360 Virtual Tour
6.4.2. 3D Virtual tour
6.4.3. Virtual Reality Tour
7. Country Shift, Key Countries in Focus, 2022
7.1. US
7.1.1. By Age
7.1.2. By Demography
7.1.3. By Booking Channel
7.1.4. By Tour type
7.1.5. By Application
7.2. France
7.2.1. By Age
7.2.2. By Demography
7.2.3. By Booking Channel
7.2.4. By Tour type
7.2.5. By Application
7.3. Spain
7.3.1. By Age
7.3.2. By Demography
7.3.3. By Booking Channel
7.3.4. By Tour type
7.3.5. By Application
7.4. UK
7.4.1. By Age
7.4.2. By Demography
7.4.3. By Booking Channel
7.4.4. By Tour type
7.4.5. By Application
7.5. Germany
7.5.1. By Age
7.5.2. By Demography
7.5.3. By Booking Channel
7.5.4. By Tour type
7.5.5. By Application
7.6. Japan
7.6.1. By Age
7.6.2. By Demography
7.6.3. By Booking Channel
7.6.4. By Tour type
7.6.5. By Application
7.7. Singapore
7.7.1. By Age
7.7.2. By Demography
7.7.3. By Booking Channel
7.7.4. By Tour type
7.7.5. By Application
7.8. India
7.8.1. By Age
7.8.2. By Demography
7.8.3. By Booking Channel
7.8.4. By Tour type
7.8.5. By Application
7.9. China
7.9.1. By Age
7.9.2. By Demography
7.9.3. By Booking Channel
7.9.4. By Tour type
7.9.5. By Application
7.10. Rest of the World
7.10.1. By Age
7.10.2. By Demography
7.10.3. By Booking Channel
7.10.4. By Tour type
7.10.5. By Application
8. Gross Revenue
8.1. Gross Revenue (US$ Million) and Forecast (2023 to 2033)
8.2. Number of Bookings (mm) and Forecast (2023 to 2033)
8.3. Total Spending Y-o-Y Growth Projections (2023 to 2033)
8.4. Number of Tourists Y-o-Y Growth Projections
9. Challenges & Looking Forward
9.1. Success Stories: Case Studies
9.2. FMI Recommendations
10. Market Stakeholders Landscape – Key Direct Suppliers
10.1. Airlines
10.1.1. Top Players
10.1.2. Market Concentration
10.1.3. Market Share
10.2. Hotel Companies
10.2.1. Top Players
10.2.2. Market Concentration
10.2.3. Market Share
10.3. Tour Operators
10.3.1. Top Players
10.3.2. Market Concentration
10.3.3. Market Share
11. Social Media Sentimental Analysis
11.1. Travel Influencers: A new Phenomenon in the world of Tourism
11.2. Social Media Platforms Preferred
11.3. Trending #Hashtags
11.4. Social Media Platform Mentions (% of Total Mentions)
11.5. Trending Subject Titles
12. Assumptions and Acronyms Used
13. Research Methodology
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