Rural Tourism Market

Rural Tourism Market Size (2023-2028):

The Rural Tourism Market size is expected to grow with a CAGR of 6.4% during the forecast period. The market was valued at USD 95.7 billion in 2022 and is expected to reach USD 138.4 billion by 2028.

Market Overview:

Rural tourism is when people visit quiet countryside places, farms, and small villages for relaxing holidays. They go there to enjoy nature, like beautiful landscapes and peaceful surroundings. People also want to learn about farming, like planting crops or taking care of animals on working farms. Rural tourism lets visitors meet local folks, taste local food, and join cultural celebrations. You can stay in cosy guesthouses or farmhouses. It's a chance to explore outdoor activities like hiking, riding horses, or camping. Rural tourism helps people escape city life, unwind, and understand how rural communities live. It's also suitable for the countryside by bringing in tourists and respecting nature.

Market Drivers:

Rural tourism is a growing market because it offers travellers a chance to experience real local culture. When people visit countryside areas, they get to meet the locals, take part in their traditions, and see how they live. This makes rural trips special and different from big-city vacations. It's like a window into the true heart of a place, and that is why so many people love it. This genuine cultural experience is a big reason why the rural tourism market is expanding, attracting more travellers and businesses catering to their needs.

The rural tourism market is all about people exploring the countryside for vacations. These places have stunning natural landscapes, like mountains, forests, and rivers, which attract tourists who are looking to escape crowded cities and experience nature's tranquillity. This trend is boosting rural economies and creating opportunities for local communities as more people choose to explore the charms of rural life. As a result, rural destinations are continually evolving to offer unique experiences that cater to the market demands of modern travellers, making rural tourism a dynamic and promising market.

Market Restraints:

The rural tourism market faces challenges due to limited infrastructure because some of these areas don't have enough facilities like good roads, places to stay, or hospitals. This can slow down the market growth of rural tourism. However, many rural places are working on improving these things to attract more tourists. As more people discover the beauty of rural areas, this market is expected to grow, creating opportunities for local communities and businesses while preserving the charm of the countryside.

Market Opportunities:

Rural tourism holds a promising market opportunity. With improved digital connectivity, rural areas can showcase their unique attractions and activities to a global audience online. This opens doors for efficient online booking services and broader marketing reach, which attracts more travellers. As a result, rural communities can tap into a growing tourism market, boosting their local economies and creating new job opportunities. So, investing in rural tourism and improving digital connectivity is a smart move for both travellers and rural communities.

Market Key Developments:

• In 2021, Airbnb adapted its platform to focus on longer-term stays and local getaways, catering to travelers seeking rural and suburban destinations. It introduced enhanced cleaning protocols to reassure guests and hosts about safety.
• In 2022, Booking.com introduced flexible booking options and cancellation policies to accommodate changing travel plans. It also highlighted rural and nature-based accommodations to align with the shift in travel preferences.
• In 2022, Expedia launched a campaign promoting domestic and rural travel, encouraging travelers to explore local destinations. It partnered with rural accommodations and attractions to provide exclusive deals.

RURAL TOURISM MARKET REPORT COVERAGE:

Market Segmentation:

Rural Tourism Market - By Tourism:

• Agro Tourism
• Farm Tourism
• Wilderness and Forest Tourism
• Green Tourism
• Eco-Tourism 

The eco-tourism segment dominates the rural tourism market shares due to growing environmental awareness, demand for authentic experiences, government support, appeal to diverse travellers, a positive brand image, and its focus on long-term sustainability.

Rural Tourism Market - By Traveler:

• Adventure Seekers
• Cultural Enthusiasts
• Eco-Tourists
• Family and Group Travelers
• Solo Travelers 

Adventure seekers dominate rural tourism due to the allure of thrilling activities like hiking, kayaking, and zip-lining, offering excitement and novelty. Social media's impact amplifies their influence, as adventurers share their rural escapades online, inspiring others to seek similar exciting experiences, making it a prominent traveller segment.

Rural Tourism Market - By Accommodation:

• Farm Stays 
• Cottage Rentals
• Eco-Lodges
• Homestays 

Farm stays hold significant rural tourism market shares due to their rural authenticity, offering guests a genuine agricultural experience and a respite from urban life. They provide educational, interactive activities, often set in scenic countryside locations, with farm-to-table dining options that align with sustainability values, making them a favoured choice among nature enthusiasts and eco-conscious travellers.

Rural Tourism Market - By Age Group:

• Below 15 years
• 16 to 25
• 26 to 35 
• 36 to 45 
• 46 to 55 
• above 55 

Family travel is standard in this demographic, drawn to rural areas offering family-friendly activities and accommodations, making them a significant market segment for rural tourism.

Rural Tourism Market - By Region:

• North America
• Europe
• Asia-pacific
• Middle East and Africa
• Latin America

Europe holds a dominant position in the rural tourism market due to its rich cultural heritage, easy accessibility, and diverse landscapes. The continent attracts travellers seeking authentic historical experiences and offers well-preserved traditions and sites. Its robust transportation network facilitates exploration. North America is next in leading the dominant shares of the market with the presence of varied landscapes and strong road trip culture, naturally attracting those keen on rural exploration, outdoor activities, and cultural heritage. Asia Pacific is deemed to reach the highest CAGR in the coming years. The Asia-Pacific region is enticed with stunning natural beauty, cultural diversity, and adventure options, appealing to nature lovers and adventurers, often with budget-friendly options. The Middle East and Africa provide unique desert experiences, history exploration, and ecotourism, catering to adventurers, history buffs, and eco-conscious tourists who are setting up growth opportunities for the market. 

Impact of COVID-19 on the Rural Tourism Market:

The COVID-19 pandemic had a significant impact on rural tourism market growth. Lockdowns and travel restrictions caused a sharp decline in visitors, which hurt small businesses that rely on tourists, and some even closed for good. Rural communities with limited healthcare were worried about the virus. However, as restrictions eased, rural tourism picked up as people sought safe, open spaces. This boosted nature-based and remote getaways. To thrive in the post-pandemic era, rural tourism businesses adapted by implementing safety measures, using digital marketing, and offering diverse experiences. This highlighted the importance of adaptability and resilience in this sector.

Market Key Players:

1. Airbnb
2. Booking.com
3. Expedia Group
4. TripAdvisor
5. Marriott International
6. Hilton
7. Agoda
8. Ctrip (Trip.com Group)
9. AccorHotels
10. Wyndham Hotels & Resorts
11. InterContinental Hotels Group (IHG)
12. Airbnb
13. Priceline Group
14. TUI Group
15. Expedia Group
16. Thomas Cook Group
17. Hertz Global Holdings
18. American Express Global Business Travel