The travel industry took a major hit during the pandemic. Many countries and vendors generate huge revenues through tourism. This industry supports other industries such as hotels and aviation. Traveling helps in the exchange and exploration of ideas and knowledge through interactions with people from different countries which have diverse cultures. The following stats cover areas such as the future of the travel industry, popular destinations, spending by tourists, etc.
Travel Industry Second-Fastest Growing Sector in the World
1. GDP growth of 3.2 percent and contributing a record $8.8 trillion and 319 million jobs to the world economy
2. Travel and tourism industry is forecast to contribute more than 100 million new jobs globally over the next 10 years, accounting for 421 million jobs by 2029.
3. Travel is one of the most dynamic industries.
4. According to IBISWorld experts’ analysis, the global tourism industry is ranked 10th on the list of the 10 global biggest industries by revenue in 2020.
5. We rank the industry’s size by employment, thus the travel industry comes in as the first one.
6. Global hotels & resorts and international tourism are among the first five biggest industries by employment in 2020.
7. The projections tell us the coronavirus has cost the global tourism industry at least $1.2 trillion in 2020.
8. The sector’s revenue for the years 2017, 2018, and 2019 was 688,559m, 713,070m, and 738,879, respectively.
9. In 2020 the market plummeted by more than 50% because of the COVID-19 pandemic and leisure travel ban.
10. Factors such as supply and demand, availability of transportation, economy, and travel tech, are responsible for bringing changes in the travel industry.
11. Global revenue for travel and tourism is estimated to decrease by 34.7% to an estimated $447.4 billion. The original 2020 forecast was $712 billion in revenue.
12. European tourism is expected to take the biggest hit from COVID-19: revenue for the travel and tourism industry in Europe decreased from $211.97 billion in 2019 to roughly $124 billion in 2020.
13. The tourism industry lost 1.5% of the global gross domestic product after four months of being shut down, reported the UN Conference on Trade and Development.
14. If international tourism remains shut down over 12 months, the UN predicts a loss of 4.2% global GDP ($3.3 trillion).
15. The World Travel and Tourism Council predicts that 121 million of the 330 million jobs tied to tourism around the world lost in 2020.
16. Tourism is going to take a while to recover, says McKinsey. The consulting firm predicts that international tourist arrivals decreased 60 – 80% in 2020, and tourism spending is not likely to return to pre-crisis levels until 2024.
17. Not only are consumers traveling less, but they’re also dining out less. Statista reports that the “year-over-year decline of seated diners in restaurants worldwide was a staggering 41.36% on August 23, 2020.
18. The travel industry says it accounts for 15.8 million American jobs—that’s employment for one in every 10 Americans. That means the economic impact of coronavirus could have a major impact on the US unemployment rate.
19. Some reports predicted that the loss in travel-related jobs caused the U.S. unemployment rate to double from 3.5% in February to 7.1% in March/April.
20. Based on current trends, experts predict that the United States will lose far more than any other country in dollar terms and nearly double that of China.
21. In April, when many states encouraged or mandated that residents stay home, tourist arrivals in Hawaii fell 99.5%. Tourism accounts for 21% of Hawaii’s economy.
22. Florida also faced a drop in tourism, with their tourism sector declining 10.7% in the first quarter of 2020. The state reports that tourism has an economic impact of $67 billion on Florida’s economy.
23. On April 11, 2020, only 3% of hotels in Austin, Texas were occupied: 342 rooms were booked, compared to 10,777 in 2019.
24. Statista predicts a drop in spending of $355 billion in 2020 in the US, a decrease of 31%.
25. The number of international companies, businesses, meetings, and conferences is increasing
26. European business travel accounts for quite a substantial sum.
27. Medical tourism also became a thing, with many people traveling to get access to affordable medical services.
Why do we need traveling to be prevalent?
1. Tourism is an important driver of economic activity, so tourism statistics provide insight into travel trends and the economic impact
2. Local businesses rely on tourism statistics to forecast demand for their products and services, and hotels use tourism statistics to inform pricing strategies, and staff schedules
3. World economies depend upon the revenue from the travelling industry to run their operations
How many tourists travel each year?
1. In 2018 1.4 billion travelers took international trips, and the number of tourists taking domestic trips is likely higher.
2. Within the US, Americans take over 2 billion trips per year.
3. Americans traveling abroad rack up around 93 million trips per year, and international tourists visiting the US account for about 80 million trips per year.
4. Globally, tourists took around 1 billion international trips in 2020, which was around 30% less than the expected 1.46 billion trips
5. Tourism is not expected to fully recover until 2023
The leading countries
1. The travel industry’s US segment generated the most revenue in 2020 – $65,249m
2. China and Germany are the second and third largest travel & tourism markets with revenues of $53,295m and $29,195m.
The biggest contributors
1. The largest travel industry’s segment is hotels
2. It was projected to contribute $198,643m to overall market volume in 2020.
3. Package Holidays fall in second with $93,501m, followed by Vacation Rentals with revenue of $48,937m and Cruises with revenue of $7,785m in 2020
Looking at the future of the travel industry
1. The projected market volume for 2021 is $539,936 million
2. It is expected to show an annual growth rate of 21.1%.
3. Market is expected to show the same annual growth rate until 2025 when it’s expected to reach the market volume of $909,235 million
4. Tells us that the travel industry continues to be one of the fastest-growing industries in the world
5. Many countries have recognized travel & tourism as profitable industries.
6. Hundred countries are continuously investing in making destinations more attractive and affordable.
1. Travel restrictions at borders impacted air travel and other forms of transportation. There were four categories of restrictions impacting a total of 217 destinations
2. 45% of destinations (97 countries) implemented total or partial border closures;
3. 30% of destinations (65 countries) suspended flights totally or partially;
4. 18% of destinations (39 countries) enforced border closures aimed at a specific group of destinations;
5. 7% of destinations (16 countries) required visitors to quarantine or implement similar measures.
6. The average number of commercial flights per day fell from 100,000+ in January and February 2020 to around 78,500 in March and 29,400 in April.
7. Passenger revenue is estimated to drop by $314 billion in 2020 — a 55% decrease from 2019, according to the International Air Transport Association.
8. As of May 4, 2020, international flights had decreased by 80% as compared to 2019
Traveling business impacts
1. The pandemic has deeply impacted business travel: this sector is predicted to lose $810.7 billion in revenue this year.
2. China is expected to see the biggest loss in business travel from COVID-19, where spending is expected to decrease by a total of $404.1 billion
3. Experts are predicting that 5 – 10% of business travel will be permanently lost, due in part to remote working tools that enable virtual meetings.
4. Business travel declined 89% as a result of COVID-19, more than the Great Recession and 9/11 losses combined.
5. PwC reports that almost half of all businesses canceled corporate travel during this pandemic.
6. Europe and Asia saw the most significant decreases in international arrivals.
Traveling spendings of people
- In 2020, international travelers spent $83 billion compared to $233 billion in 2019, a loss of 64% (US Travel)
- In 2020, International travelers spent money on US goods and services (US Travel):
- Travel spending – $38.1 billion (compared to $139 billion in 2019)
- Passenger fares – $26.5 billion (compared to $40.1 billion in 2019)
- Education-related – $37.4 billion (compared to $44 billion in 2019)
- Health-related – $0.2 billion (compared to $1.2 billion in 2019)
- Border/seasonal workers – $7.6 billion (compared to $9.1 billion in 2019)
- US travel spending in 2020 totaled $680.3 billion ($642.2 billion domestic travel spending and $38.1 billion international spending) (US Travel)
- US travel spending in 2019 totaled $1,172.6 billion ($993.5 billion domestic travel spending and $179.1 billion international spending) (US Travel)
- In 2019 traveler spending totaled $1.1 trillion: $278.9B for food services, $242.3B for lodging, $210.8B for public transportation, $169.7B for auto transportation, $117.8B for recreation/amusement and $107.3B for retail (US Travel Association)
- Direct spending on leisure travel by domestic and international travelers totaled $792.4 billion in 2019 (US Travel Association)
- Direct spending on business travel by domestic and international travelers totaled $334.2 billion in 2019 (US Travel Association)
- Travel and tourism was the second-most-popular choice for discretionary spending (Phocuswright)
- In 2019, domestic travel spending grew 4.4% (for leisure grew 5.1%, for the business grew 2.8%) (US Travel Association)
- The average booking cart is slightly above US$150 (Tour Scanner)
- Millennials spent $4,400 (avg.) on travel in 2019, (Gen-Xers’ $5,400; Boomers’ $6,600) (CNBC)
- Domestic travel expenditures industry breakdown for 2019 were: food services 25%, public transportation 20%, lodging 20%, auto transportation 17%, recreation/amusement 11%, retail 7% (US Travel Association)
- On average, Americans plan to spend $737 on their upcoming trip. Gen Xers will spend more than other age groups, and parents of kids under 18 plan to shell out more than $1,000 (Value Penguin)
- The average expense for a 4-night domestic vacation is $581 (or $144 per day): $224 for transportation, $150 for lodging, $155 for food/alcohol and $52 for entertainment (Value Penguin)
- The average expense for a 12-night international trip is $3,251 (or $271 per day): $1,755 for transportation, $683 for lodging, $520 for food/alcohol and $293 or entertainment (Value Penguin)
- Americans spend an average of $33 per day on food when on a domestic vacation, about 80% of which is spent in restaurants (Value Penguin)
- Americans spend an average of $35 per day on food when on an international vacation, about 90% of which is spent in restaurants (Value Penguin)
- 36% of travelers rated travel as an important spending priority (Phocuswright)
- $1,036 billion was spent on traveling in 2017 (US Travel Association)
- 2.7% of the nation’s gross domestic product (GDP) attributed to travel and tourism (US Travel Association)
- Business travel accounted for $317.2 billion in spending in 2017 (US Travel Association)
- Leisure travel accounted for $718.4 billion in spending in 2017 (US Travel Association)
- Americans spend $101.1 Billion on summer vacations (Travel Agent Central)
- On average, Americans will spend $1,978 on summer vacations (Allianz Travel Insurance)
- The average international trip for American travelers now costs $6,080 (Squaremouth)
- Vacationing millennials (ages 18-34) spent, on average, $1,373 on summer vacations (Allianz Travel Insurance)
- 56% of travelers aged 25-34, spend $500-$1500 for a one week trip, excluding airfare (Solo Traveler)
- Baby Boomers (ages 55+) spent an average of $1,865 on summer vacations (Allianz Travel Insurance)
- Baby Boomers plan on spending over $6,600 on their 2019 travel (AARP)
- Generation X (ages 35-54) spent an average of $2,628 on summer vacations (Allianz Travel Insurance)
- The typical traveler anticipates spending nearly $3,900 on vacations in 2018 (Destination Analysts)
- On average, Americans in the South spent less on vacationing ($564 on domestic and $3,169 on international) compared to the Northeast, Midwest, and West (Reward Expert)
- Baby Boomers expect to take 4-5 leisure trips next year, spending up to $6,395 on travel expenses – the same or more than they spend in 2017 (AARP)
- Generation X will spend up to $5,434 on travel and millennials up to $6,802 in 2018 (AARP)
- 26% of American domestic travel expenses go towards food services, 20% towards public transportation, 20% towards lodging, 17% towards auto transportation, 10% towards recreation/amusement, and 7% towards retail (US Travel Association)
- Travelers who book their activities ahead of their trip spend 47% more on lodging than those who wait to book (Booking.com)
- Lodging costs are about 26% of total travel expenditures for domestic trips, and 21% for international trips (Value Penguin)
- On average, excluding airfare, 30% of travelers aged 55-64 spend $1500-$2500 on a one-week trip (Solo Traveler)
- The average cost for American travelers to visit Norway is $9,754 (Squaremouth)
- The average daily rate for hotels in the United States was $126.72 in 2017 (Statista)
- Activities are the third-largest segment of travel at $129 Billion (Phocuswright)
- $220.4 million was spent on lodging in 2017 (US Travel Association)
- $106.6 million was spent on recreation/amusement in 2017 (US Travel Association)
- Food plus alcohol take up about 16% of the budget for an American’s international trips, and about 27% of their domestic trips (Value Penguin)
- Transportation costs make up 54.3% of international trip expenditures and 39.1% on domestic trips (Reward Expert)
- More than 25% of travel costs go toward food for domestic travel and 16.2% for international travel (Reward Expert)
- 37% of travelers are very likely to splurge on food and drink experiences (WYSE Travel Confederation)
- 4% of travelers are likely to splurge on first or business class airfare (WYSE Travel Confederation)
- 27% of travelers are likely to spend more on events or festivals (WYSE Travel Confederation)
- 12% of travelers are likely to splurge on guided tours (WYSE Travel Confederation)
- The typical vacationing U.S. family spends about 44% of their travel funds getting to, from, and around their destinations (Value Penguin)
- Travelers who book their activities ahead of their trip spend 81% more on transportation than those who wait to book their destination (Booking.com)
- The average traveler spends about 9% of their vacation budget on entertainment (Value Penguin)
- 65.3% of Americans say that leisure travel is somewhat of a budget priority for them (Destination Analysts)
- 47% of millennials say cost is a barrier for why they won’t travel (AARP)
- Millennials are the most likely to go into debt for travel (Travel Pulse)
- 83% of families will splurge on their travel destination when planning a vacation, 68% on paid attractions, 68% on staying close to their destination, 63% on eating out/food, and 63% on the length of their trip (NYU)
- 62% of families will skimp on souvenirs/shopping when planning a vacation (NYU)
- 24% of solo travelers spend more than $1,500 for one week of vacation (excluding airfare) (Solo Traveler World)
- Each overseas traveler spends approximately $4,200 when they visit the U.S. and stays on average 18 nights (US Travel Association)
- Experience beats expense when it comes to family travel (Expedia Group)
- Flying coach instead of business saved business travelers $2,975 on average per round-trip flight (Rocketrip)
- Dropping a hotel star class saved business travelers $54 on average per night (Rocketrip)
- 42% of Americans paid lodging costs for domestic travel vs. 60% for international travel, as domestic travelers often stay with family and friends (Value Penguin)
- Staying with friends or family saved business travelers $234 on average per night (Rocketrip)
- Staying at an Airbnb saved business travelers $110 on average per night (Rocketrip)
- Taking an early-bird flight saved business travelers $66 on average per round-trip flight (Rocketrip)
- Taking a low-cost carrier saved business travelers $281 on average per round-trip flight (Rocketrip)
- Managers saved an average of 15% per trip, $572 per year, and took an average of 5 trips per year (Rocketrip)
- Directors saved an average of 12% per trip, $684 per year, and took an average of 6 trips per year (Rocketrip)
- Vice Presidents saved an average of 11% per trip, $651 per year, and took an average of 6 trips per year (Rocketrip)
- CXOs saved an average of 9% per trip, $1,081 per year, and took an average of 8 trips per year (Rocketrip)
- 26% of Americans will use their rewards points or miles to fund their next vacation (Value Penguin)
- Vacation spending is equal to about 2% of the total budgets of all U.S. households annually (Value Penguin)
Tourism is a factor that significantly drives a country’s economy. As the world is still coping up with the COVID-19 pandemic, travel enthusiasts are continuing to travel within and outside the boundaries of a country. New rules and reforms within the travel industry will help steer the industry back to its positive growth.