North America Online Travel Market Overview
Market Size in 2024: USD 151.26 Billion
Market Size in 2033: USD 351.17 Billion
Market Growth Rate 2025-2033: 9.80%
According to IMARC Group's latest research publication, "North America Online Travel Market Size, Share, Trends and Forecast by Service Type, Mode of Booking, Booking Platform, and Country, 2025-2033", The North America online travel market size reached USD 151.26 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 351.17 Billion by 2033, exhibiting a growth rate (CAGR) of 9.80% during 2025-2033.
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Growth Factors in the North America Online Travel Market
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Widespread Smartphone and Internet Access
The increasing demand on smartphones usage and high-speed connectivity of internet is one of the greatest factors boosting online travel in North America. More than 86 percent of U.S. people are the owners of smartphones and there is an availed 5G coverage, which enables passengers to make flight, hotel, and activity booking on the fly. Phones were critical to the industry considering that 56 percent of all travel reservations are done using mobile. Users are fond of having an app that allows to make a payment just with a single click and offers the opportunity to monitor current changes. This is made so convenient that instant reservations and last-minute offers are made, especially to younger travellers. Other companies such as Expedia and Booking. com have made their apps mobile-friendly, raising their potential user interaction. Such government efforts as the improvement of broadband services in Canada, to which the government invests in broadband expansion, continue to drive this trend, as travel online becomes more accessible.
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Rising Demand for Personalized Travel Experiences
In North America, the demand of the travelers is personalized experience, and this makes companies adopt artificial intelligence and data analytics to personalize services. In the United States, around 72 percent of their travelers choose to do their bookings with websites and services that can provide them with suggestions tailored to them such as tailor-made packages or secret offers. As an example, an OpenAI-powered itinerary generation was launched on TripAdvisor, raising users satisfaction levels. This personalization standard boosts the number of bookings, because travellers feel that their requirements, such as eco-friendly accommodation to adventure tour are taken into account. Firms use machine learning data to interpret the user preference, which reduces the search time and increases satisfaction ratings. The campaign run by the U.S. Department of Commerce to popularize international tourism, offering customized deals through online channels, increased the number of bookings by a quarter illustrating the power of personalization in the competitive world.
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Growing Consumer Spending Power
The online travel market is being powered by higher disposable incomes across the US and Canada especially in the 32-43 age category. This interested group posing a high buying power makes up 35 percent of the market share. They are connected and enjoy using digital platforms and are willing to spend on traveling, whether it is a luxury vacation or a brief escape at the weekend. There were 66.5 million international travelers, representing a significant travel spending and a 31 percent growth year on year in the U.S. Comparing deals is easy on online platforms, which stimulates increased rates of spending on vacation packages and high-quality services. Governmental initiatives such as the desire of Canada to receive international settlers have contributed to the demand in travels and online bookings have sky-rocketed. This is what companies such as Airbnb and Expedia are taking advantage of by providing luxury experiences that also prompt users to spend on rare and high value excursions.
Key Trends in the North America Online Travel Market
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Surge in Sustainable and Eco-Friendly Travel
People are switching to sustainability in travels too, as 64 percent of the American travelers want to find eco-friendly lodgings. Social sites and networks such as Airbnb have added eco-tourism experiences to their program, which offers wildlife safaris and cultural tours, which saw a 40 percent increase in the number of bookings made using the programs. Customers are ready to pay an additional 10 percent to engage in sustainable travel, in which low-carbon-print and local experiences are paramount. The response of online travel agencies is through the highlighting of green certification and also the contracts of eco-friendly suppliers. To give an example, Booking.com currently includes filters called sustainable properties, which will help the user make a conscious choice. The trend can be seen as part of the more general trend involving environmental awareness, as commuters seek out platforms that match their beliefs, creating an impetus in the sustainable travel services industry in North America.
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Rise of Mobile-First Booking Platforms
Travel reservations made over phones are completely dominated by mobile devices as 57 percent of all reservations are done using smartphones. Such a tendency is supported by the popularity of apps that are more user-friendly and offer benefits, such as login via biometrics and instant updates about the deals. Ancillary services such as travel insurance are selling at 20 percent higher than usual as a result of in-app upsays by a company like Expedia. Gen Z travelers trust social media- fueled discovery, spending and making bookings inside apps. Real time upsells are also achievable through QR code integration into destinations and attractions in airports. Such strong emphasis on the mobile-first design maintains the bounce rates at the lowest level and enhances efficiency in making the bookings. With smartphones as the preferred platform, companies are pouring a lot on app optimization; so much so that there is hardly any stuttering around. This is to accommodate the high-speed accelerating modern world where travelers are always on the move.
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Growth of Experiential and Adventure Travel
North American travelers are finding newer, exciting experiences and resorting to venture in travels as opposed to regular touring packages. The bookings of activities such as national park trips and road trips are also up by 28 percent using online platforms. This is where Airbnb is capitalizing on that with its so-called Icons offering, where the company offers unique one-time experiences with people like comedian Kevin Hart. Approximately two-thirds of the travelers will make a solo trip, and approximately three-quarters of Gen Z and Millennial travelers are not averse to venturing, and most of them are likely to do so with a social media hashtag such as #solotravel (topped with 9 million Instagram posts). To satisfy this need, platforms are mediating local, authentic experiences, like, cooking classes or guided hikes. The market is being reconfigured as companies are focusing on niche products in order to capture the attention of those travelers who want memorable experiences that are custom tailored to their liking.
The north america online travel market report provides a comprehensive overview of the industry. This analysis is essential for stakeholders aiming to navigate the complexities of the market and capitalize on emerging opportunities.
North America Online Travel Market Industry Segmentation:
The report has segmented the market into the following categories:
Service Type Insights:
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Accommodation Booking
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Travel Tickets Booking
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Holiday Package Booking
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Others
Mode of Booking Insights:
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Direct Booking
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Travel Agent
Booking Platform Insights:
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Desktop
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Mobile/ Tablet
Country Insights:
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United States
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Canada
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Research Methodology:
The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.
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