July 14, 2024
Urban Tourism Market

Urban Tourism Market is Thriving through Sustainable Experience

Urban tourism involves travel to cities, towns and other urban areas for pleasure or business purposes. It provides a unique sustainable experience for travelers to interact with local residents and culture through various activities such as guided walking tours, food tours, heritage walks, cycling tours and local community engagement programs. The growing desire for new experiences and immersive cultural interactions is driving the demand for urban tourism globally.

The urban tourism market is estimated to be valued at US$ 10.56 trillion in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the urban tourism market are URBAN TOUR, Intrepid Urban Adventures, MakeMyTrip, Yatra, ClearTrip, EasemyTrip, Expedia, Thomas Cook, Riya Group, Thrillophilia, Travel Troops Global Private Ltd., Flying Squirrel Holidays, SOTC Travel Limited, G Adventures, Hays Travel, Audley Travel, Go Travel, TransIndus, Travelex and Al Tayer Group. These players offer sustainable tourism experiences through various experiential activities in major cities globally.

The growing demand for unique experiences is driving the Urban Tourism Market Trends. Travelers are looking for immersive ways to interact with local communities and culture beyond the conventional attractions. Urban travel companies are innovating experiences focused on cultural interactions, food trails, heritage walks and volunteer programs to meet this demand.

The market is also expanding globally with travel companies focusing on second and third tier cities globally. Cities in Asia Pacific, Middle East, Latin America and Eastern Europe are witnessing rising interest from global travelers for their cultural heritage, architecture and hidden gems. Travel operators are designing new experiences and routes to promote urban tourism across diverse global destinations.

Market Key Trends

Solo travel is a major trend in the urban tourism market. More travelers, especially millennials, are preferring independent exploration of cities supported by curated custom experiences and guides. Travel companies are launching customized packages and services for solo travelers to experience destinations securely through local interactions. This has been a key driver of the growing independent travel trend in urban centers globally.

Porter’s Analysis

Threat of new entrants: The urban tourism market has moderate threat of new entrants due to high investment cost requirement to setup urban tourism services.

Bargaining power of buyers: Buyers have high bargaining power in the urban tourism market due to availability of various service providers and options.

Bargaining power of suppliers: Tourism operators have low bargaining power against big players due to fragmented supply market.

Threat of new substitutes: Substitutes like rural tourism provide low threat due to unique experience offered by urban destinations.

Competitive rivalry: Intense competition exists among existing players to acquire more market share.

Geographical regions where market is concentrated:

North America accounts for the largest share of the urban tourism market due to major urban destinations like New York, Los Angeles, Chicago attracting large number of domestic and international tourists.

Fastest growing region:

Asia Pacific region is expected to witness the fastest growth in the urban tourism market during the forecast period. Emerging cities in countries like China, India are rapidly evolving with improving infrastructure and connectivity attracting more tourists.

1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it