The U.S. and Canada travel market size was valued at USD 951.8 million in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 10.3% from 2022 to 2030. Increasing government steps to resuscitate the economy by funneling funds into the system is assisting various businesses in launching new ventures, which will have a beneficial impact on the expansion of the travel market in the U.S. and Canada. Furthermore, throughout the projection period, the evolving trend of transformational travel centered on wellness journeys to restore, balance, and transform the mind, spirit, and body is predicted to drive the market. The COVID-19 pandemic has resulted in accelerated socio-economic changes that would continue to affect businesses and communities.

In addition, the effects of long-term issues, such as climate change and economic instability, are becoming more apparent. COVID-19 has resulted in uncertainty-ranging from differing entry rules at global borders, such as the number of nationals that can be admitted, under what circumstances, and with what quarantine or related requirements, to refund policies (airfares, hotels, and for business event planners. Expedia Group conducted a study of 2,200 Americans in the U.S. in March 2021 to understand the evolution of the travel industry since the onset of the COVID-19 pandemic.

The study concluded that 67% of families in the U.S. took a flexi-cation trip (working and schooling remotely) in 2021 and 13% of people in the U.S. booked an international trip that year. There has been an increasing popularity of value-driven trips that offer money's worth and brands that are based on price and convenience, especially among millennial and younger travelers. However, travel has been one of the first and hardest-hit industries since the coronavirus outbreak. Strict lockdowns and shelter-at-home orders in most parts of the world have adversely impacted the travel industry and the assorted ecosystems that rely on it.

Personalized services, reliable transport, exclusivity, and positive & professional interaction with staff are what set the benchmark for travel. Traveling around the world is being greatly influenced by favorable factors, such as growing political stability, improving attitudes toward gender, ethnicity, sexual orientation, and race, and more accommodating visa regulations. Travelers are looking to create their own unique experiences through flexible itineraries that combine entertainment as well as relaxation.

On the basis of types, the luxury travel segment accounted for the largest share of more than 32.00% in 2021. An increase in disposable spending by consumers in the U.S. and Canada is the key factor driving the segment growth. According to a report published by TripAdvisor in May 2021, high-income millennials in the U.S. were the key spenders on luxury trips and a majority of them took purpose-driven travels mainly for self-care and relaxation. Such trends are likely to bode well for the segment growth. The budget travel segment is likely to register the fastest CAGR over the forecast period.

The penetration of budget-friendly travel trends among consumers across the U.S. and Canada is likely to complement the segment growth. For instance, In August 2021, a new travel discovery and booking service, Elude, launched its mobile app. The company aims to match open-minded travelers who have a budget in mind with trips that fit both budget and interests. The iOS version of the Elude app can be downloaded at the Apple App Store, and web booking at Elude.co, as well as an Android app will be available soon, according to a company spokesperson. Meanwhile, the new Una Travel app from startup firm XOKind curated collaborative itineraries for individual travelers and groups primarily based on interests.

On the basis of age group, the market for travel in Canada and U.S. has been further categorized into millennial, baby boomers, and generation-X. The millennial age group segment dominated the overall market in 2021 and accounted for the largest share of more than 51.00% of the total revenue. Value-driven trips and brands that are built on affordability and convenience are becoming increasingly popular, especially among millennial and younger travelers. In 2018, millennials in the U.S. spent USD 200 billion on travel, and it is expected to increase over the forecast period.

According to Winspire, 33% of millennials in the U.S. plan to spend USD 5,000 or more on vacation. When it comes to millennial families in the U.S., the average is USD 6,282. The millennial segment is expected to grow further at a steady CAGR maintaining its dominance over the forecast years. Millennials are not only prioritizing these trips over other money-oriented assets but are also saving up for them. According to Project Time Off insights, in 2020, 20% of all travelers were millennials, who took an average of 7.4 trips every year.

U.S. emerged as the largest market in 2021 and accounted for the maximum share of more than 95.00% of the overall revenue. This trend is expected to continue over the forecast period. Americans are gradually resuming international travel. Though international travel restrictions remain in place in certain countries. In March 2021, around 3 million American citizens traveled outside of the country. This is close to the 4 million U.S. citizens who traveled abroad in March 2020 at the onset of the pandemic and far below the roughly 8 million who traveled internationally in March 2019, according to the U.S. Department of Commerce data.

However, as compared to the late spring of 2020, when only around 1 million Americans or fewer left the U.S., the number of people traveling outside the U.S. in March 2021 shows a considerable difference. Still, international travel by Americans remains far below pre-pandemic levels. According to Statista, the number of international tourist trips to Canada significantly declined in 2021. In the same year, international tourists made approximately 4.28 million trips to Canada, which was down 15.5% over the previous year. According to Statistics Canada, 2019 was regarded as the best year for Canadian tourism, with 22.1 million arrivals, crossing the 22 million benchmark for the first time. Overnight arrivals to Canada from countries other than the U.S. reached an all-time high of 7.15 million as compared to 6.7 million in 2019.

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. For instance:

Some of the key players operating in the U.S. and Canada travel market include: Expedia, Inc.; Booking Holdings Inc.; American Express Global Business Travel (GBT); TCS World Travel; Abercrombie & Kent USA, LLC; Exodus Travels Ltd.; BCD Travel; Intrepid Travel; Topdeck Travel Ltd.; Trafalgar.

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