The Global Alternative Tourism Market size is estimated at US$ 98 billion in 2022 and is projected to reach a valuation of US$ 108 billion by 2028, and is predicted to register with a CAGR of 2.4% over the foreseen period 2023-2028.
Market Overview:
It is a type of tourism operational with a harmony of nature, society, and community that allows hosts and guests to interact and share their experiences. It differs from mass tourism regarding supply, society, and human resources. Alternative Tourism is synonymous with the commercial form of tourism, which is generally small-scale and focuses on the minimal negative impact on social, cultural, and environmental aspects.
It goes along with the values of the local population and experiences. It has acquired extensive adoption across regional hubs to improve economic development as it is concentrated in sparsely populated areas. The main focus of Alternate tourism is to make visitors experience the local way of life, people, and nature.
Market Drivers:
Tourism packages are one of the key driving factors for the market as they offer a convenient and cost-effective way for travelers to plan their trips. Tourism Packages are a combination of transportation, accommodation, activities, and other services provided for different prices based on customization. As a result, travel packages persuade nontravelers to travel and explore the world.
With the increase in concern for sustainability, Eco-friendly packages underneath are acting as a driving force for the market's growth. It includes accommodations that are designed specially to minimize the environmental impact. They include activities like walking in nature with wildlife viewing, these differentiate it from a crowded market, and travelers are willing to pay premium prices for the unique experience that ultimately boosts the Alternative Tourism Market.
Offering a wide range of packages can attract more different types of travelers with its unique, sustainable, and responsible tourism practices that drive the exponential growth of the Alternative Tourism Market.
Market New Trends (Dark Tourism):
It is defined as tourism involving travel to places that are historically associated with death and tragedy. Dark tourism is gradually becoming a new trend as people are attracted to focus on it because of curiosity about death. Many destinations can be promoted as dark tourist spots that are affecting the country's economic growth by creating mobility for travelers across the world. These new trends in the market are promoting the diversification of the Alternative Tourism Market into various segments that eventually drive the expansion of the market size.
Market Restraints:
Societal constraints are impacting the market's growth and development, including limited awareness, low participation by locals, and balancing Tourism and accessibility.
Limited awareness among travelers acts as a primary restraint for the market. Furthermore, awareness about the availability of various tour packages that provide different options/ customization and benefits of sustainable practices limits the tourism operators in attracting and restraining customers.
Some segments of alternative tourism work in close association with the local communities. They require the locals to guide and provide a unique emotion by exchanging the experience, providing an opportunity to stay with them, and involving them in their daily activities. This feature is one of the most important for the Alternative Tourism Market to sustain its market share. So, less participation by the local communities will be a back draw for the market's growth.
Market Opportunities
Some key opportunities for meeting the needs of today’s travelers market include adventure tourism, cultural tourism, eco-tourism, agro-tourism, and rural tourism.
The increasing popularity of adventure sports among people can target both domestic and international markets by offering attractive features, offers, and exhilarating experiences with huge potential for the Alternative Tourism market.
Cultural tourism has a growing demand with its everlasting experience with local culture and traditions by staying close to the local way of living.
The never-ending demand for traveling near natural scenery and growing concern for conserving the environment with sustainable tourism has a huge potential for the Alternative Tourism Market. Eco-tourism can target environment-conscious travelers to accelerate the growth rate of the Alternative Tourism Market.
The growing trend for Agro- and rural tourism will drive the market towards an extensive growth rate in the coming years.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022 – 2028 |
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Base Year |
2022 |
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Forecast Period |
2023 - 2028 |
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CAGR |
2.4% |
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Segments Covered |
By Type, Distribution, Application, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Eurostar, SNCF, Deutsch Bahn, FlixTrain, Renfe, Bouteco, Kind Traveler, Wilderness Holding Limited, Beyonder Experiences, Government Tourism, and Others. |
Market Segmentation
Adventure tourism is expected to have notable growth for the projected period. The capitating nature and availability of various activities in the visiting places help to extend adventure tourism. In addition, the extensive marketing with government programs to encourage tourism, the increased reach of social media networking, and the increasing reach for travel videos are propelling the growth of the Alternative Tourism Market across the world.
The online segment is leading with the dominant shares of the market owing to its user-friendly character. In today's over-stretched and tiresome life, people look over the convenient process. Therefore, the surge in internet users and access to the web is contributing to the expansion of the Alternative Tourism market.
In 2020, the 31-40 years segment was the most outstanding. Financial security, health and energy, enthusiasm, and active involvement in adventures are the attributes of this age group, making it to outstand in the segment.
Market Regional Analysis:
Before the pandemic, Europe had the largest revenue in Alternative Tourism Market, but it is expected that the Asia-Pacific region will surpass Europe with a notable growth rate in Alternative Tourism Market during the forecast period due to the improved region’s business climate. This region has rich cultural diversity, with diverse ethnic groups, religions, and traditions, along with various natural attractions that caused a significant change in the market shares.
The COVID-19 pandemic has affected the tourism business worldwide, losing billions of dollars in revenue. In 2020, the sector reduced sales by 28% compared to 2019. The tourism business expansion is impacted due to a rapid drop in visitors number, travel constraints, increased health and safety concerns, and border closing caused a decline in demand. In addition, the hospitality business also saw a reduction in revenue due to the pandemic.
Market Key Players:
Market Key Developments:
Frequently Asked Questions
The market size will be US$ 108 Billion by the end of the year 2028.
Asia-Pacific region has good market potential.
Eurostar, SNCF, Deutsch Bahn, FlixTrain, and Renfe are a few key players in the market.
Societal constraints are one of the major factors in the market.
A CAGR of 2.4% is expected during 2022-2028.
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