U.S. And Canada Travel Market Global Insights And Revenue Growth Up To 2030

U.S. And Canada Travel Market Summary

The U.S. and Canada travel market size was estimated at USD 1,537.7 billion in 2024 and is anticipated to expand at a compound annual growth rate (CAGR) of 7.8% from 2025 to 2030. This growth is largely attributed to the resurgence of both leisure and business travel in the aftermath of the COVID-19 pandemic, coupled with increasing levels of disposable income and a noticeable shift among travelers toward experiential and adventure-based tourism. Furthermore, the widespread integration of digital platforms for travel bookings and itinerary management, along with a mounting interest in sustainable and eco-conscious travel options, are significantly influencing the positive momentum of the market.

Moreover, the long-term effects of persistent global issues such as climate change and economic uncertainty are becoming increasingly evident. The pandemic has introduced complexities and unpredictability in international travel, such as varying entry regulations across borders, including restrictions on the number of incoming nationals, travel conditions, and quarantine requirements. Additionally, concerns over refund policies for flights, accommodations, and events have impacted traveler confidence. According to a study conducted by Expedia Group involving 2,200 American participants in March 2021, the travel landscape has undergone a profound transformation since the beginning of the pandemic.

Key Market Trends & Insights

• Leisure travel held a revenue share exceeding 33% in 2024, propelled by increased discretionary spending among consumers in both the U.S. and Canada. A TripAdvisor report released in May 2023 highlighted that affluent millennials in the U.S. were the primary contributors to luxury travel spending, with a large proportion of them engaging in purpose-oriented trips focused on self-care, wellness, and relaxation. These evolving preferences are expected to significantly support and enhance the growth trajectory of the leisure travel segment in the coming years.
• The demographic group aged between 41 and 60 years accounted for more than 42% of the market revenue share in 2024. This age bracket typically possesses substantial disposable income and well-defined travel habits. Being in the prime of their professional careers, many individuals within this cohort benefit from the financial means and scheduling flexibility to undertake both business and leisure travel, making them a key driving force behind market expansion.
• Domestic travel within the U.S. and Canada represented over 84% of the total revenue share in 2024. This dominance can be attributed to a combination of economic stability, convenience, and the wide availability of attractive travel options within each country. Both nations offer robust transportation infrastructure and an extensive network of domestic destinations, enabling residents to explore local and regional attractions without the need for international journeys.
• In 2024, the travel market in the U.S. alone captured a commanding revenue share of more than 95%. This leadership is underpinned by a multitude of factors, including the vast and diverse tourism offerings, a well-developed hospitality sector, and the country's continued popularity as a global travel destination, which make it the top choice for tourists within North America.
• The travel market in Canada is projected to grow at a CAGR of 4.3% from 2025 to 2030. Canada's tourism appeal is rooted in its combination of dynamic urban experiences, breathtaking natural landscapes, and a rich blend of cultures and heritage, all of which attract a growing number of domestic and international travelers each year.

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Market Size & Forecast

• 2024 Market Size: USD 1,537.7 billion
• 2030 Projected Market Size: USD 2,452.6 billion
• CAGR (2025 - 2030): 7.8%

Key Companies & Market Share Insights

The market is highly competitive due to the presence of several companies. Market players are undertaking various strategic initiatives, such as agreements, partnerships, mergers, acquisitions, and the launch of new services to gain higher market share and strengthen their industry position.As traveler preferences evolve, companies explore sustainable travel solutions and niche markets like eco-tourism. This allows them to cater to environmentally-conscious consumers and differentiate their offerings in the highly competitive landscape.

Key Players

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

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Conclusion

In conclusion, the U.S. and Canada travel market is poised for strong growth, supported by rising incomes, digital transformation, and shifting travel preferences toward unique and meaningful experiences. The post-pandemic recovery has reinvigorated both domestic and international travel, while the demand from key age demographics continues to rise. Sustainable tourism and purpose-driven travel are reshaping the market landscape, especially among millennials and middle-aged travelers. With the U.S. leading in market share and Canada steadily expanding, both countries are well-positioned to cater to evolving consumer expectations, ensuring long-term growth and resilience within the North American travel industry.