U.S. Tour Operators Market Size, Share, Analysis, Trends, Growth, Forecasts, 2032

U.S. Tour Operators Industry Prospective:

The U.S. tour operators market size was evaluated at $8.1 billion in 2023 and is slated to hit $31 billion by the end of 2032 with a CAGR of nearly 17% between 2024 and 2032.

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U.S. Tour Operators Market: Overview

Tour operators are the firms or persons who design & enhance travel experience for customers. They handle all aspects of the tour, including accommodation, transport, and meals. Various kinds of tours include custom tours, package tours, and special interest tours. Apart from this, tour operators provide services such as travel assistance, planning & co-ordination, and guided tours. Popular tour operators in the U.S. include Contiki, Intrepid Travel, Bindlestiff Tours, Omega Tours, G Adventures, and Trafalgar.

Key Insights

• As per the analysis shared by our research analyst, the U.S. tour operators market is projected to expand annually at the annual growth rate of around 17% over the forecast timespan (2024-2032)
• In terms of revenue, the U.S. tour operators market size was evaluated at nearly $8.1 billion in 2023 and is expected to reach $31 billion by 2032.
• The global U.S. tour operators market is anticipated to grow rapidly over the forecast timeline owing to a surge in disposable income and a growing elderly population seeking regular travel.
• In terms of service, the event ticket commission segment is slated to register the highest CAGR over the forecast period.
• Based on travel type, the leisure segment is predicted to dominate the segmental growth in the upcoming years.
• On the basis of tour, the trip planning segment is expected to lead the segmental space in the forecasting years.
• Region-wise, the Northeast tour operators industry in the U.S. is projected to register the fastest CAGR during the projected timespan.

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U.S. Tour Operators Market: Growth Factors

An increase in the per capita income of the consumers will drive market trends in the U.S.

A surge in disposable income and a growing elderly population seeking regular travel is likely to steer the growth of the U.S. tour operators market. Furthermore, an increase in the online booking tools and mobile apps usage has proliferated the size of the growth of the market in the U.S. Moreover, surging demand for domestic travel as well as tours in the U.S. is likely to increase the profitability of the tour operators based in the U.S. Apart from this, an exponentiation in the luxury tours along with demand for personalized experiences will increase the size of the market in the country. Additionally, the trend of eco-friendly tours will contribute lucratively towards the elevation of the market in the U.S. Travelers prefer tour operators that use eco-friendly products, which has culminated in massive growth of the market in the North American country.

U.S. Tour Operators Market: Restraints

Visa and travel checks imposed by the state authorities can affect the industry surge in the U.S.

Risk of recession due to outbreaks of pandemics and epidemics has reduced customer spending on tours and travel, thereby severely affecting the demand for tours. This, in turn, has affected the revenue of the U.S. tour operators industry in the current years. Visa and travel restrictions imposed by the U.S. government for migrants will create ripples in the industry growth in the country.

U.S. Tour Operators Market: Opportunities

Large-scale use of online tools for booking tours can offer a plethora of growth avenues for the U.S. market

Use of digital systems for online travel booking along with the use of AI-driven chatbots for customer service for speeding up customer interactions is likely to spur the growth of the U.S. tour operators market. Tour operators are making use of blockchain tools for offering secured fiscal transactions & providing efficient services, thereby opening new opportunities for growth for the market in the U.S. Focus on local, cultural, and heritage tourism will scale up the market expansion in the country in the years to come. For the record, tour operators are providing travel insurance to the customers, and this will open a Pandora of avenues for the market in the near future.  

U.S. Tour Operators Market: Challenges

Economic instabilities can challenge the market demand in the U.S over 2024-2032

Economic fluctuations and an increase in the rate of inflation in the U.S. can retard the growth of the U.S. tour operators industry. Furthermore, growing competition between online travel agencies along with the risk of natural calamities such as floods & earthquakes can retract the growth of the industry in the U.S.

U.S. Tour Operators Market: Segmentation

The U.S. tour operators market is divided into service, type, tour, and region.                                          

In terms of service, the U.S. tour operators market is bifurcated into airline seat commission, lodging commission, cruise commission, event ticket commission, and other commission segments. Additionally, the event ticket commission segment, which gained approximately half of the market earnings in 2023, is predicted to register the fastest rate of growth yearly during the time interval from 2024 to 2032. The main factor bolstering the segmental expansion can be credited to the need for increasing service offerings of tour operators in the U.S. along with attracting more customers

On the basis of travel type, the U.S. tour operators industry is sectored into business and leisure segments. In addition to this, the leisure segment, which accrued about 62% of the industry share in 2023, is set to lead the segmental expansion in the U.S. in the upcoming years. The segmental expansion can be due to a surge in the frequency of travel for holiday tours, picnics, and weekend tours.

Based on the tour, the U.S. tour operators market is divided into trip planning and other travel services segments. Furthermore, the trip planning segment, which led the tour segment in 2023, will retain its dominant status in the forecasting years. The growth can be due to fluctuating customer trends along with the need for travelers to gain personalized experiences during travel.

U.S. Tour Operators Market: Report Scope

U.S. Tour Operators Market: Regional Insights

Southern region of the U.S. is expected to dominate the market surge over 2024-2032

Southern region, which accrued 55% of the U.S. tour operator market share in 2023, is set to uphold its position in the U.S. market in the years to come. In addition to this, the regional market expansion in the forecast timeline can be credited to the easy availability of the most popular tourist places in the region as well as beaches & coasts such as the Atlantic Coast and Gulf Coast. Presence of museums and cultural festivals in the South of the U.S. will further drive the regional market trends. Apart from this, the easy availability of various cuisines such as seafood and BBQ has enlarged the scope of market demand in the country.

The Northeast tour operators industry in the U.S. is predicted to record the highest rate of expansion annually within the next couple of years. The growth of the U.S. tour operators industry in the Northeastern part of the U.S. can be due to easy access to well-developed transportation facilities and the presence of Cape Cod, the Adirondacks, and the White Mountains, which are famous for skiing and hiking activities. Reportedly, Northeastern cities such as Washington DC, New York City, & Boston have a vibrant nightlife and are key tourist destinations.

U.S. Tour Operators Market: Competitive Space

The U.S. tour operators market profiles key players such as

• Trafalgar
• Expedia Inc.
• American Express Global Tour Operators (GBT)
• TCS World Travel
• Intrepid Travel
• Abercrombie & Kent USA LLC
• Booking Holdings Inc.
• Topdeck Travel Ltd.
• Exodus Travels Ltd.
• BCD Travel.

The U.S. tour operators market is segmented as follows:

By Service

• Airline Seat Commission
• Lodging Commission
• Cruise Commission
• Event Ticket Commission
• Other Commission

By Travel Type

• Business
• Leisure

By Tour

• Trip Planning
• Other Travel Services

By Region

The U.S.

• Northeast
• Midwest
• South
• West