In customised holidays the entire itinerary is set by the travel agent, says Future Market Insights Inc.

The customised holidays market had a market value worth US$ 105 billion in 2022, and it is estimated to reach a market value of US$ 406.7 billion by 2033, growing at a steady CAGR of 13.1% from 2023 to 2033.

The rapid evolution of the travel industry, along with increased disposable income and many other factors are expected to drive the sales of the customised holidays market. Customized holidays are prepared solely on the basis of the preferences given by a person or by a group of travelers. This is different from package tours, where the entire itinerary is set by the travel agent, and based on that the customers have to choose their preferences.

Customised Holidays Market Historical Analysis (2018 to 2022) Vs. Forecast Outlook (2023 to 2033)

The global demand for customised holidays market was estimated to reach a global market valuation of US$ 64.17 billion in 2018, according to a report from Future Market Insights (FMI). From 2018 to 2022, sales witnessed significant growth in the customised holidays market, registering a CAGR of 4.2%.

Even travel agents are wooing prospects for customized packages to ensure that the customers have a memorable experience visiting places and have quality time, either alone or with their family and friends. With so much to offer, the customized holiday market is certainly expected to grow and offer the customers the experience they are looking forward to. Technological advancements have made the task easier for both the customers and the travel agents.

The growing elderly population is another factor fueling the market’s expansion. Older generations continue to be interested in package holidays since they are convenient, hassle-free, as well as insured, in contrast to younger generations who tend to choose distinctive and autonomous travel. The increased popularity of FIT tourism, or free independent traveler tourism, is limiting industry development. Customers go alone or in small groups in search of uncommon experiences. Compared to other regions, Europe is becoming a more popular destination for this kind of customised tourism.

Surge in the FIT segment is expected to increase the demand for customised holidays in the coming times

There is a segment of travelers, who are called the ‘Free Independent Traveller’ (FIT). As the name suggests, they want to enjoy their holidays by either spending time alone or by visiting places which may not be part of the itinerary of the travel agent. There has been a surge in the FIT segment, over the past few years.

There has been an increase in urbanization, as a result of which people spend a lot of time in their offices. They look for ways to destress themselves, and there are no better ways to visit their favorite hill station or any other part. This is anticipated to increase the sales of the customised holiday market.

There has also been an increase in the disposable income of the people. They, thus, do not mind spending the extra money to visit certain places where they wish to travel, even if that means an extra expenditure, which may not be a small amount in certain cases. All they desire is to have a seamless experience in their favorite destination. This is anticipated to increase the adoption of customised holidays.

The rapid increase in social media and internet penetration is expected to increase the customised holiday market size

The customised holiday market share is expected to rise because of rapid internet penetration as well. Internet and smartphones have literally made customers the king. They can simply decide for themselves where to go and can create a customised itinerary.

The rapid internet penetration has resulted in the rapid spread of social media as well. Social media is an effective tool to share experiences, write reviews, and spread the word of mouth. These reviews have a tendency to attract lots of tourists to a given place.

The willingness to explore new places and rising younger generations to boost sales

There is huge chunk of people who are willing to explore new places. The point to be noted over here is that they want to create their own schedule, and are wishing to visit places, which may not be part of any itinerary. They want to enjoy the time alone or with their family. This willingness to explore new places is expected to increase the adoption of customised holidays.

If we talk about the age group, it is the younger generation which is willing to invest in customised packages. These younger generations form a considerable market share in the tourism industry. They are the ones who are ready to visit places independently, using a customised itinerary. The increased involvement of the younger generation is expected to increase the market for customised holidays.

One of the biggest advantages of customised packages is that nothing is forced upon us, unlike packaged group travel, wherein we need to follow what the agent says. Travelers get to decide what to do and where to go if they select customised packages. This is expected to increase the demand for customised holidays.

It is important to note that customised packages are for those who have adequate knowledge about a place, as they will be in a better position to handle almost anything. For a person who has no idea about the place where he is visiting, and has booked a customised package, might be unaware of many things, which may be important to know. It is advisable to have better knowledge about a place if we go in for customised packages.

Europe is likely to capture the Lion’s Share Owing to its Scenic Bounty of Nature

Europe is the leading market for customized holidays, with a market share of 33.3% in 2022. The reason being it is one of the hottest destinations for people who love traveling solo. It is a collection of many countries, and Europe has everything to offer right from monuments, and sites of ancient civilizations to the picturesque landscape.

The variables ascribed to the increasing revenue share include rising consumer expenditure on travel and tourism as well as higher disposable income. The World Tourism Organization of the United Nations estimates that in 2021, visitors from Europe will make up the majority of all foreign tourists arriving globally. FIT (free independent traveler) tourism is becoming more and more popular as a substitute for pre-packaged vacation, nonetheless. FIT travelers enjoy making their own travel arrangements and favor going in pairs or small groups.

Customisation in Various Phases of the Tour is Likely to Spur Growth

In 2022, the North American market for customized holidays was estimated to have attained a market share of 24.5%. North America is also meant for places like British Columbia, Oregon, etc. which are meant for sightseeing.

Customisation of hotel services is becoming a prominent issue. Service providers have been coming up with creative ways to tailor hotel services and make their clients feel unique, which improves the quality of hotel stays. For example, most hotels provide champagne to guests for special occasions like weddings, engagements, and birthdays. Services may be tailored to guests’ preferences, such as their preferred colors, meals, and medical problems, to further enhance the guest experience.

The need for in-hotel customisation services is anticipated to increase as a result of an increase in spending on luxurious lodging stays and desire for exotic and premium services, which together will help the market for customized holidays develop in the region.

In June 2022, MakeMyTrip has decided to increase the all-women team of holiday experts.

TCS World Travel was in the news for offering a 10-day ‘city to the shrine’ expedition featuring stops in Tokyo, Mount Owakudani’s hot springs, charming countryside villages, and much more starting from $25,450, providing an option for private jet charter as well.

Rainbow Trade Fair Tours organizes both group and lone travel to foreign trade shows for many years. In 2023, the company celebrated its 17th year in operation and was honored with the prestigious Gold Trade Fair Tour Operator Award from Travel Buzz News (TBN). This award is a tribute to the organization’s persistent commitment to providing top-notch services. The entire crew is thrilled with this accomplishment and is continuing the ongoing festivities.

In 2022, TCS World Travel, a top luxury tour operator as well as private jet adventure provider, has unveiled its eagerly awaited 2023 global travels itinerary, which offers a wide range of top-notch experiences across six continents. The all-inclusive itineraries offered by the company include its signature Around the World expedition by private jet in addition to a recently launched trip to explore the undiscovered wonders of Asia and an extraordinary exploration of lesser-known World Heritage listed sites in Africa, South America, and the Arabian Peninsula.

These insights are based on a report on customised holidays market by Future Market Insights.

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.