Driving Vacation Market Expected to Reach $513.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Driving Vacation Market," The driving vacation market size was valued at $121.2 billion in 2021, and is estimated to reach $513.3 billion by 2031, growing at a CAGR of 15.7% from 2022 to 2031.

Driving vacation is known as a road trip in which traveler visit different location for pleasure and explore new destinations. Growth in support from governments for infrastructural development in travel and tourism destinations and government policies and incentives for encouraging state tourism are expected to drive growth of the driving vacation market. For instance, various domestic events were organized for the publicity and promotion by the ministry of tourism. U.S. using current stakeholder systems and procedures to improve biometric entrance or departure systems and facilitate data exchange while employing existing airport and airline infrastructure. It makes advantage of the current IT infrastructure and passenger data. Thus, technological advancement and its application in tour and tourism is likely to support for the growth of the product market during forecast period.

The growth of the driving vacation market share is primarily driven by development of the tourism & hospitality industry. Individuals worldwide are increasingly exploring niche destinations and travelling across countries to discover untapped regions, which further augments the driving vacation market growth. Furthermore, rise in trends of sharing travel experience on social media platform encourages the people to go for road trips which is anticipated to subsequently boost the growth of driving vacation market during the forecast period. Moreover, there has been a significant increase in  interest of people in travel and tourism, due to prolonged restrictions caused by COVID-19. The tourism industry has started reviving after COVID-19 and is witnessing a drastic increase in domestic as well as international tourism. Technology plays a vital role in increasing the tourism as people are now more aware of various destinations, routes to travel and accessibility to information. Furthermore, people are inclined towards the car rental service as they assure as safe, flexible, and convenient transport. This is anticipated to support the growth of the product market.

In addition, knowledge of people about various trends impacting the travel industry has increased as a result of an increase in their exposure to various social media platforms. Customers are increasingly choosing travel-related services and goods based on recommendations from those who have visited or stayed there before. They also refer to evaluations and analysis provided on different social networking websites. The growth of the online travel business, which in turn supports the growth of driving vacations, is further fueled by quick and efficient flight and hotel bookings, activity bookings, an increase in customer trust in online payment, and the opportunity to compare numerous accessible adventure travel options.

The global product market is categorized into tour type, traveler type, mode of booking and region. By tour type, it is classified into customized road tour and fixed departure tour. On the basis of traveler type, it is fragmented into solo, group and others. By mode of booking, the market is segmented into online travel agency and direct travel agents. Region wise, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, Switzerland, Spain and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia and Rest of Asia-Pacific). LAMEA (UAE, South Africa, Saudi Arabia, Brazil, Turkey and Rest of LAMEA)

According to driving vacation market trends, on the basis of tour type, the customized road trip has been holding the major share in the market and is expected sustain its share during forecast period. As travelers are choosing unique and exotic vacation destinations to get away from their hectic daily schedules and gain valuable experiences. Private, quiet, serene, and exotic locations are important factors that people consider when deciding where to travel.

According to driving vacation market analysis, on the basis of traveler type, the group segment was valued at $50,450.2 million in 2021, and is expected to grow to $2,07,780.5 million by 2031 at a compound annual growth rate of 15.38%. Participation in adventure activities has a significant impact on the personality of an individual, which is one of the main reasons why group driving vacations are gaining popularity in friends and individuals.

On the basis of mode of bookings, the direct travel agency segment was the highest contributor to the market with $76,460.9 million by 2031, at a CAGR of 15.49% during the forecast period. The majority of travelers prefer direct booking with the travel agent to cut down the expenses. Numerous service operators directly get in touch with their prospecting clients, with the advent of online portals. Thus, above factors are likley to contribute for the growth of driving vacation industry.

According to driving vacation market opportunities, region-wise, Asia-Pacific has been gaining a significant share in global driving vacation market and is expected to increase its share throughout the driving vacation market forecast period. Asia-Pacific is one of the fastest growing regions in the driving vacation market. The presence of a sizable millennial population, along with rising disposable income and improving infrastructure related to travel and tourism, has led to significant growth in the market share of driving vacations from the Asia-Pacific region.

The major players in the driving vacation industry that have been analyzed in this report include Alamo, Adventures overland, American Express Travel, Expedia group Inc., The hertz corporation, JTB Americas ltd., Priceline (booking holding Inc., Scott Dunn ltd., SOTC travel, Thomas Cook India Pvt. Ltd, Tourradar, Travel leader group, Travelsphere, Triumph Expedition Pvt. Ltd., Undiscovered mountains, Wexas Travel Management, World travel Inc., Butterfield & Robinson, Wild frontiers travel and Audley travel.

Key findings of the study

• On the basis of tour type, the customized road trip segment is expected to be the fastest-growing segment during the forecast period.
• By traveler type, the solo segment accounted for a considerable market share in 2021, growing at a CAGR of 15.9% from 2022 to 2031.
• By mode of booking, the direct travel agents segment accounted for the highest market share in 2021, growing at a CAGR of 15.4% from 2022 to 2031.
• By region, North America occupied the maximum share in the driving vacation market in 2021 and is expected to dominate the market during the forecast period.