Published: Apr-2021 | Format: PDF | Market Research Store | Number of pages: 177 | Code: MRS - 828565
According to the report published by Market Research Store, global demand for the adventure travel market was estimated at approximately USD 670 Billion in 2019 and is anticipated to generate revenue of around USD 1,600 Billion by end of 2026, growing at a CAGR of around 13.3% between 2020 and 2026.
Adventure travel entails physically engaging in events in order to get a better understanding of your destination. Hiking, sky diving, and a host of other activities are examples of this. As a result, adventure travel refers to those wanting thrills and adrenaline. It entails taking a break from one's normal life and immersing oneself in something new. Whether it's exposure to a foreign culture and its customs, or exposure to the destination's popular leisure. Bucket list destinations are also used to describe adventure travel destinations. Adventure tourism, according to the Adventure Tourism Trade Association, includes at least two of the following three characteristics: a bond to nature, cultural contact, and/or physical exercise. An adventure means escapism and a challenge, often challenging comfort zones, as well as a reward—often intangible in nature—for successfully achieving the challenge. Despite these qualities, what makes an adventure is arbitrary in nature, resulting in a wide range of 'adventurous' events.
Over the projected era, an increasing number of travelers eager to reach new destinations around the world is expected to fuel global demand growth. Furthermore, the target market's growth is projected to be aided by the growing tourism industry, rising disposable income of individuals, and an increase in adventure trips with a party, solo, or couple around the world. Government-led tourism marketing efforts, increased government spending in the tourism industry, and a growing shift toward adventure activities during vacations are all projected to drive global market growth during the forecast period. Furthermore, easing of travel restrictions and vigorous tourism marketing policies implemented by different countries around the world are some of the factors predicted to drive global demand development over the next ten years. Furthermore, the social media advertising for better travel offers across numerous social media channels such as Facebook, YouTube, Instagram, and others is another big factor projected to contribute significantly to the target market's expansion. Unpredictable weather patterns, on the other hand, are a significant factor that is likely to stifle global demand development to some degree. Furthermore, the high cost of adventure activities is another consideration that may limit the target market's growth to some degree. To attract consumers, key operators are constantly implementing novel technology such as augmented reality, artificial intelligence, IoT, and other technologies. Such programs are expected to provide a lot of opportunities for the adventure tourism industry to expand in the coming years. Adventure travel companies, for example, are relying on augmented reality to provide a more immersive sensory view of adventure adventures and natural settings.
The adventure travel market is segmented in terms of type, activities, type of traveler, and sales channel. Based on type, the market is divided into soft, hard, and others. The soft type is anticipated to hold the maximum share as they are considered to have low-risk rates with a minimial requirement of experience. Based on activities, the market is bifurcated into water-based activities, land-based activities, and air-based activities. The segment of land-based activities holds maximum share as land-based events such as bicycle trips, trekking, and wildlife safaris are in high demand among all age groups. Furthermore, people's growing interest in archeological expeditions, visiting local fairs, and bird watching is expected to fuel demand for land-based activities. On the basis of type of traveler, the market is divided into solo, couple, friends/group, and family. The segment of the family holds the maximum share as adventure trips inspire children and family members to journey together and learn new experiences and strengthen their bonds. Furthermore, adventure trips provide chances to spend meaningful time with loved ones and build memories. On the basis of sales channels, the market is split into direct and travel agents. The segment of travel agents holds the maximum share as these agents have good knowledge about the popular tourist destinations and are also aware of alternate plans in case of any emergency such as a change in the climate. They also have an access to several vacation deals and offers provided by the hotels with good discount rates.
The global adventure travel industry was led by Europe in 2019, followed by North America and Asia Pacific. Due to an increasing travel and tourism industry and a high number of visitor arrivals, Europe had a market sales share of more than 30% in 2019. Europe records about 100 million trips a year on average. Europeans are considered to value the experience of traveling to new countries, which is why adventure travel is in high demand. This aspect is anticipated to augment business expansion in the European region. Furthermore, an increase in the number of online travel agencies is estimated to accelerate business growth over the forecast period, owing to an increase in the number of independent/solo travelers. Another important element in regional domination is government efforts to promote natural capital. The European adventure tourism industry is dominated by Germany, Switzerland, Spain, and Iceland, among others.
The major players dominating the global adventure travel market in terms of revenue and development are Abercrombie & Kent USA, LLC, Tauck, Urban Adventures, Butterfield & Robinson Inc., TCS World Travel, Cox & Kings Ltd., Thomas Cook Group, Jet2holidays.com, G Adventures, Lindblad Expeditions, Audley Travel, Oku Japan, Exodus Travel, Scott Dunn Ltd., Intrepid Group, and Others. To gain a credible foothold in the global economy, these multinational corporations have used a variety of strategies, including acquiring alliances, stakes, contracts, partnerships, joint ventures, new product releases, deals, and mergers and acquisitions. Abercrombie & Kent significantly improved their Alaska and American West offerings in May 2020, launched six additional tailor-made adventure trips and two new great American road trips. New tailor-made trips across the United States were also launched by the firm. National parks in California, Arizona, and Utah were included in the itinerary, along with nature encounters in Wyoming and Alaska, as well as food tours and exciting wine tours in the Sonoma and Napa valleys.