Australia Travel and Tourism Market Size, Share, and COVID-19 Impact Analysis, By Type (Domestic, Inbound, and Outbound), By Service Offering (Ticket Reservation, Hotel Booking, Holiday/Tour Packages, Others), and Australia Travel & Tourism Market Insights, Industry Trend, Forecasts to 2035

Australia Travel & Tourism Market Insights Forecasts to 2035

• The Australia Travel & Tourism Market Size Was Estimated at USD 14.6 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 2.95% from 2025 to 2035
• The Australia Travel & Tourism Market Size is Expected to Reach USD 20.1 Billion by 2035

The Australia Travel & Tourism Market Size is anticipated to reach USD 20.1 Billion by 2035, Growing at a CAGR of 2.95% from 2025 to 2035.  Several factors such as rising incomes, new digital travel platforms, and an increasing interest in unique and sustainable travel experiences, are propelling the Australian travel and tourism industry forward. The market will also be positively supported over the forecasting period by the diverse attractions in Australia, in terms of natural beauty, heritage attractions, and agreeable climate.

Market Overview

The Travel & Tourism Industry consists of all elements of the business catering to the preferences and requirements of tourists, including planning tour operations and accommodation, and transport provision to attract tourists and travel agencies. Package and tour holidays, hotel stays, independent rentals, camps, and cruises constitute this pulsating industry. The travel and tourism industry in Australia is a prospering and vibrant trade that plays the main economic role in the country.  Featuring breathtaking natural scenery, unique fauna, and lively cities, Australia attracts domestic and foreign tourists.  Growing regional interconnectedness facilitated by the industry. People now find it easier to cross borders because of improving transport infrastructure and an abundance of cheap airfares; hence, tourism is on the rise in Australia. Foreign travellers are drawn here by the country's unique wildlife, diversified cultural experiences, and picturesque beauty. Besides that, Australians do enjoy travelling and exploring the various parts of their own country. Travel by residents to other states and territories comprises a big chunk of the domestic tourism industry. Moreover, digitalisation has transformed how the world plans and enjoys travel. Booking, sharing reviews, and exploring destinations through digital platforms make the traveling process far easier and more convenient. With the increasing prominence given to health and wellness and the corresponding rise in awareness, a particular diverse niche within the travel and tourism spectrum has also come into existence. As future opportunities, top players in the market are mainly focusing on key areas such as sustainable and experiential tourism, technology and digital marketing, domestic tourism, and strategic partnerships, which foster the market growth in the forecasted period.

The Australian government supports the country's travel and tourism industry through several programs such as By 2030, the THRIVE 2030 policy aims to grow sustainability in Australia's tourism industry to $230 billion yearly tourist spending. It focuses on collaboration, modernity, and tourism industry diversification. Government funds for tourism are provided for particular programs that assist tourism companies with activities promoting tourists from vital overseas markets under the Tourism Firms Funding Scheme. An Indigenous tourism business may receive personal mentoring through the National Indigenous Tourism Mentorship Program, which also gives beneficial advice and some hands-on assistance in transforming plans and strategies into action.

Report Coverage

This research report categorizes the market for the Australia travel & tourism market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Australia travel & tourism market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Australia travel & tourism market.

Driving Factors

The Australia travel & tourism market is primarily driven by natural beauty and diverse landscapes. Australia's natural beauty attracts worldwide tourists who come to explore its unmatched beauty. The diverse landscapes of Australia provide numerous outdoor activities that appeal to adventurous visitors who enjoy mountain climbing in the Blue Mountains and surfing at the Gold Coast. Australia holds a strong attraction for tourists because of its historical and cultural legacy and unwavering support for indigenous traditions. Additionally, the cultural life in Sydney and Melbourne maintains a dynamic and active presence. When people visit cities, they encounter many high-quality museums and theaters along with galleries and dining establishments, which serve as cultural exploration hubs. The rise of sustainable tourism practices and eco-friendly travel has led to a growing demand for ecotourism and responsible travel choices among tourists. People increasingly shift to technology to obtain personalized services for booking and navigation purposes. Travelers benefit from mobile applications and augmented reality and virtual reality technologies, which enhance their experiences. Travelers now rely heavily on technology for making reservations and obtaining customized experiences and navigation assistance. People have more money to spend on leisure activities and travel because their disposable income has increased while inflation growth slows down.  The growth of business and leisure tourism in foreign countries stands as a key factor driving this development.  The Australian government established initiatives to develop its tourism industry, which led to its successful establishment and continuation.   The government allocated substantial funds to develop different infrastructure elements, which included road improvements and airport upgrades, along with visitor facility enhancements.  The spending on infrastructure projects increases the ease with which visitors can access facilities while simultaneously enhancing their overall experience.

Restraining Factors

The primary restraining factor for Australia travel & tourism market is that the widespread understanding of climate change, along with environmental sustainability principles, continues to increase. Travel industry members need to develop better, sustainable, and ethical approaches because their activities generate significant carbon emissions and environmental harm. The travel sector is under growing pressure to adopt sustainable practices because modern travelers now understand their impact on the environment.  The travel industry puts forth requests to all hotels, tour companies, and airlines to decrease their emissions and minimize their environmental impact. Modern travelers show increased attention to environmental matters through their selection of travel options based on their personal beliefs. The market growth of environmentally friendly lodging facilities and sustainable tour companies, and conservation-focused destinations is limiting the market growth. Australian tourism industry operations face significant challenges because of their high operational costs. The expenses for operations within the tourism industry will affect travel costs and reduce the nation's attractiveness as a tourist destination.  The COVID-19 pandemic, along with global health crises, resulted in complete international travel suspension, together with severe domestic travel restrictions, which caused extensive damage to the entire tourist system.

Market Segmentation

The Australia travel & tourism market share is classified into type and service offering.

• The domestic segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Australia travel & tourism market is segmented by type into domestic, inbound, and outbound. Among these, the domestic segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. Australia allocated substantial resources to develop facilities essential for tourism, including accommodation facilities, transportation systems, and recreational facilities. The developed infrastructure enables domestic travellers to access their destinations with greater ease. Government organizations and tourism agencies use multiple promotional strategies and rebate programs, and incentive programs to boost domestic travel.  The growth of the domestic tourism sector is mainly driven by Australians who prefer traveling within their country because of language familiarity and healthcare availability, and local traditions.  Domestic travel within Australia makes a significant financial impact on the nation's economy.  It generates economic benefits which reach multiple industry sectors including local businesses and transportation and hospitality services thus creating more job opportunities while expanding the economy.

• The ticket reservation segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Australia travel & tourism market is segmented by service offering into ticket reservation, hotel booking, holiday/tour packages, and others. Among these, the ticket reservation segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The vast Australian territory, together with its famous natural attractions and urban destinations, requires visitors to cover extensive distances, which establishes the need for efficient ticketing services that guarantee convenience.  The Australian ticket reservation industry focuses heavily on the aviation market.  Australia's vast expanse ensures that air travel stands as the quickest way to connect various urban areas and regions. Australian tourism depends heavily on international tourists who use online booking platforms to purchase their flight tickets. Consumers favor online ticketing services because of their easy access and user-friendly interfaces.  The digital transformation of today has led to an expansion in ticket reservation services because this process now provides customers with better transparency and ease of use during bookings.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Australia travel & tourism market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Marriott International, Inc.
• Accor Australia & New Zealand Hospitality Pty Limited
• Qantas Airways Limited
• Hilton International Australia Pty Limited
• Virgin Australia Airlines Pty Ltd
• G Adventures Pty Ltd
• Intrepid Travel Australia Pty Ltd.
• Intro Travel Pty Ltd.
• Bucket List Group Travel
• Intrepid Travel Australia Pty Ltd.
• Others

Recent Developments:

• In May 2024, Qantas has announced its decision to increase the frequency of its Sydney to Bengaluru flights from five weekly to daily operations to address peak travel needs during the holiday rush.  The airline will introduce 12,000 new seats between the two destinations during the four-month period that begins in mid-December and ends in late March 2025.

• In November 2023, Virgin Australia announced its decision to restart services to Uluru by introducing new direct routes which will connect the famous destination to Melbourne and Brisbane. The airline will operate Melbourne-Uluru flights on a four-day weekly schedule including Tuesday, Thursday, Saturday and Sunday while Brisbane-Uluru flights will operate three times every week on Monday, Wednesday and Friday.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Australia Travel & Tourism Market based on the below-mentioned segments:

Australia Travel & Tourism Market, By Type

• Domestic
• Inbound
• Outbound

Australia Travel & Tourism Market, By Service Offering

• Ticket Reservation
• Hotel Booking
• Holiday/Tour Packages
• Others