US Travel Market to Return to Record Levels

As a Canadian, I still find the US the most compelling place to visit. Even up against the splendor of the Alps, Spanish Beaches, France architecture and history, the azure Mediterranean Sea, and mysterious Asia, the US is comfortable, fun and accessible.

Now in the midst of a political and cultural renaissance, the malaise of the last 5 years is being erased through a marauding group of American explorers and global travelers who want to reexperience the fascination of the United States of America. They’ll be exploring 9 key growth segments you’ll want to explore if you’re managing a travel agency.

And its compelling mix of natural beauty, cultural diversity, historical significance, and modern attractions draw 80 million eager foreign tourists every year. From the Rocky Mountains to California beaches to Manhattan down to the Miami paradise, the US is most tourists’ favorite country to visit, and they spend much more here. Travel stats show us a steady regrowth to pre-pandemic levels, all pointing to record numbers in the next 5 years — supported by the incoming Trump 2.0 economy.

US Travel Revenue is Multiples of Other Countries

As the numbers in the chart above reflect, only France receives more inbound tourists while the US derives 4 times the inbound tourism revenue ($233 Billion vs $63 Billion in France). The total value of the US travel and tourism industry is $1 Trillion. It’s dynamic business makeup involving people, places, food, accommodation, technology, and experiences makes it ripe for travel service innovation and business opportunities for travel entrepreneurs. The next 5 years are a special time for the travel business sector and smart travel agency owners are preparing now.

With the incoming Trump 2.0 economy and Pro-US political agenda, the mood of the US is shifting upward. Americans will begin to feel good again, and being well employed they’ll want to expand and experience more of life — and even celebrate their country once again.

According to TravelPerk, US domestic tourism is expected to grow by 3% annually and represent 70% of tourism spending by 2030.

5 Year Outlook for US Travel and Tourism Market

• The U.S. tourism market is expected to grow steadily, reaching 92 million visitors by 2028, up from 80 million in 2024. Growth will be driven by:
  • Increased connectivity and direct flight routes.
  • Renewed interest in leisure and cultural tourism, particularly from Asia and Europe.
  • improved booking and travel management software platforms
  • AI and digital tools for personalized travel experiences.

Growth will slow to about 5% each year, however tourism revenue is projected to rise from $240 billion in 2024 to $292 billion by 2028.

A Special Country to Visit

There has always been something special about a trip to the United States. Ask any Canadian, because Canadians make up one-quarter of all visitors to the US year (20 million in 2023).

For travel agencies, tour companies, and destination businesses, a revival/improvement of US tourism is a welcome business booster. With Americans planning more domestic travel in 2025, tourism marketing will shift slightly to attracting Americans and Canadian visitors. Rising wages, and lower taxes and gasoline prices will only increase that trend should they happen.

Infrastructure in the United States is expected to improve dramatically too with deregulation and a pro-private business sector policy. With the world’s most developed tourism infrastructure and excellent trip management systems, tourists find it easy to move and experience more of its wealth of adventure and entertainment.

No other country offers the diversity of venues, landmarks, accommodations, cuisine, and culture and tourists are aware of it. And with the expulsion of illegal migrants, safety and cost will likely recede and thus increase available hotel and Airbnb/VRBO accommodations. Expected lower inflation and hotel room rates would have a definite impact on tourism growth.

PwC reported in November in its US Hospitality Directions Report forecasts 2025 U.S. hotel occupancy will hold steady at 62.9% and daily hotel room rates will increase only 1.3% to $160.49. As this chart from Statista reveals, over half the revenue generated in travel and tourism, is in accommodations.  This underscores the importance of Hotel SEO and why independent hotels need to maximize their visibility online.

You will find more infographics at Statista

US Tourism Sectors that Will Fare Well in the Next 5 Years

Here are the 9 top Growth Segments of the US travel and tourism sector:

1. Outdoor and Adventure Tourism

• Growth Drivers:
  • A growing interest in nature-focused travel, especially post-pandemic.
  • National Parks, such as Yellowstone, Grand Canyon, and Great Smoky Mountains, continue to see record-breaking visitation.
  • Activities like hiking, camping, skiing, and water sports are booming.
• Key Trends:
  • Glamping (luxury camping) and eco-tourism are attracting a broader demographic.
  • State and local parks are also seeing increased visitation as families opt for closer, budget-friendly trips.

2. Wellness and Health Tourism

• Growth Drivers:
  • Rising demand for self-care experiences, including wellness retreats, yoga vacations, and spa trips.
  • The growth of health-conscious lifestyles is leading travelers to prioritize destinations offering holistic wellness services.
• Key Examples:
  • Destinations like Sedona, Arizona, and California’s wine country offer wellness and relaxation.
  • Resorts with wellness-focused programming, including fitness, meditation, and detox retreats.

3. Road Trips and RV Travel

• Growth Drivers:
  • A desire for flexibility and independence has spurred interest in road trips and RV travel.
  • Increasing accessibility and affordability of RV rentals through platforms like Outdoorsy and RVshare.
• Popular Routes:
  • Coastal routes (e.g., Pacific Coast Highway).
  • Scenic drives like Route 66, Blue Ridge Parkway, and the Great River Road.
• Trend Spotlight:
  • Rise in “digital nomad” lifestyles leading to extended RV travel.

4. City Escapes and Cultural Tourism

• Growth Drivers:
  • Revival of urban tourism as major cities recover from the pandemic.
  • Increasing interest in cultural attractions, including museums, music festivals, and historical landmarks.
• Key Destinations:
  • New York City: Broadway shows, world-class museums, and dining.
  • New Orleans: Music, food, and festivals like Mardi Gras.
  • Chicago, Austin, and Nashville for their mix of culture, music, and food scenes.

5. Regional and Local Tourism

• Growth Drivers:
  • A focus on nearby getaways to minimize travel costs and time.
  • Growing popularity of “microcations” (short trips, 3-4 days).
• Examples:
  • Weekend escapes to wine regions like Napa Valley or Finger Lakes.
  • Historical towns like Charleston, South Carolina, or Santa Fe, New Mexico.

6. Family Travel and Theme Parks

• Growth Drivers:
  • Theme parks and family-friendly attractions are resurging as families prioritize group travel.
• Top Destinations:
  • Orlando, Florida: Disney World, Universal Studios, and other attractions.
  • California: Disneyland and attractions in Los Angeles and San Diego.
• Emerging Trends:
  • “Edutainment” experiences combining education and entertainment (e.g., science museums and aquariums).

7. Sports and Events Tourism

• Growth Drivers:
  • U.S. hosting major global events, including the 2026 FIFA World Cup and regional tournaments.
  • Increased popularity of live sports events like NFL, NBA, and college football.
• Popular Destinations:
  • Cities like Las Vegas, Miami, and Dallas with large sports arenas and event hubs.

8. Sustainable and Eco-Friendly Travel

• Growth Drivers:
  • Growing environmental awareness among travelers.
  • Demand for destinations and accommodations with eco-friendly practices.
• Examples:
  • Solar-powered lodges, electric car charging stations, and low-impact tours.
  • Sustainable travel initiatives in states like Colorado and Vermont.

9. Food and Culinary Tourism

• Growth Drivers:
  • Increased interest in food culture and farm-to-table dining experiences.
  • Popularity of food tours, local wineries, breweries, and artisan markets.
• Top Spots:
  • Food hubs like Portland, Oregon, New Orleans, and Austin, Texas.
  • Agritourism destinations in California and New York.

The 5 Year Outlook for Economy

Currently, the 5 year outlook for the housing market, stock market, and the US economy are of keen interest. Investors want to know how the bull market will play out, and thus fuel both the travel market and housing market.

As economic conditions improve, Americans will travel more, beginning in 2025. The 2025 travel market forecast bears this out, and I believe their statistics don’t reflect the real economic lift the Trump 2.0 economy will generate.

It’s time for you to invest in your travel agency, travel management software firm, or tour company.

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