Table of Contents
Introduction
The Global Staycation Market is projected to reach approximately USD 837.3 million by 2033, rising from a valuation of USD 380.7 million in 2023. This growth reflects a compound annual growth rate (CAGR) of 8.2% over the forecast period from 2024 to 2033.
A staycation refers to a leisure vacation spent at home or nearby rather than traveling to distant destinations. It typically involves engaging in local tourism, home-based recreational activities, or exploring nearby attractions while avoiding the costs and logistics of long-distance travel. The staycation market encompasses products, services, and experiences tailored to consumers who choose to spend their vacation time locally. This includes hospitality services such as hotels and resorts offering local packages, home entertainment systems, wellness products, food delivery services, travel gear, and local tourism experiences.
The growth of the staycation market can be attributed to several key factors, including shifting consumer preferences toward convenience, rising travel costs, and increasing awareness about sustainability. In recent years, external factors such as global travel restrictions, geopolitical uncertainties, and economic instability have further accelerated the demand for staycation solutions. As consumers become more budget-conscious and environmentally aware, there has been a marked increase in demand for localized, short-distance travel experiences that offer relaxation without the need for extensive planning or high expenditure.
Moreover, the rise in remote working culture and flexible work schedules has further fueled the demand for quick, local getaways. This evolving travel behavior is prompting businesses in the hospitality, leisure, and retail sectors to innovate and curate attractive staycation offerings. From a market opportunity perspective, there is significant untapped potential for service providers to bundle local experiences, wellness retreats, and home-based luxury services aimed at enhancing the quality of local leisure time. As such, the staycation market is expected to see steady growth, driven by evolving consumer lifestyles and changing perceptions of what constitutes a fulfilling vacation.
Key Takeaways
- The Staycation Market was valued at USD 380.7 million in 2023 and is projected to reach USD 837.3 million by 2033, expanding at a compound annual growth rate (CAGR) of 8.2%. This reflects sustained consumer interest in domestic travel experiences over the forecast period.
- In 2023, the 26 to 35 years age demographic emerged as the leading participant segment, indicating a strong inclination among younger adults toward local leisure and travel alternatives.
- Independent Travelers accounted for the largest share of the tour type segment in 2023, underscoring a growing preference for self-guided, customizable travel plans that allow for greater flexibility and autonomy.
- Online Booking Channels dominated the booking segment in 2023, driven by enhanced accessibility, convenience, and the widespread adoption of digital platforms for travel planning and reservations.
- North America held a significant share of the global staycation market in 2023, highlighting the region’s strong trend toward domestic tourism and localized leisure experiences.
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Impact of Tariffs on the Staycation Market
The U.S. staycation market is experiencing notable shifts in 2025, influenced by the recent imposition of tariffs and evolving economic conditions.
The U.S. has implemented a 10% tariff on most imports, escalating the average effective tariff rate to 18.5%, the highest since 1933 . This increase has led to higher costs for goods and services, including travel-related expenses such as fuel and transportation .
Consequently, consumer confidence has declined to its lowest level since May 2020, with the Conference Board’s index dropping to 86 . This downturn in sentiment has resulted in reduced discretionary spending, including travel, both domestic and international.
Staycation Market Trends
Despite these challenges, the staycation market is projected to grow at a compound annual growth rate (CAGR) of 8.2% in the first half of 2025 . This growth is driven by factors such as increased interest in local travel, wellness-focused trips, and budget-conscious vacations.
However, the broader travel industry is experiencing a downturn. Major companies like Hilton have revised their revenue forecasts downward, citing economic uncertainty and reduced consumer spending . Additionally, international tourism has declined, particularly from Canada and Europe, due to the new trade policies .
Implications for the Hospitality Sector
The hospitality industry is facing increased operational costs due to tariffs on imported goods and construction materials. This has led to delayed renovations and higher prices for services . Moreover, the uncertainty surrounding the duration and scope of these tariffs complicates long-term planning for hotel operators.
Emerging Trends
- Rise of Wellness-Focused Staycations: Travelers are increasingly seeking rest-centric experiences. A notable 61% of young travelers plan vacations centered around rest, leading to the popularity of “sleepcations,” where the primary goal is relaxation and sleep.
- Surge in Road Trip Popularity: Economic considerations have led to a resurgence in road trips, especially in regions like Australia. Destinations such as the Gold and Sunshine Coasts have seen increased demand, with families opting for affordable, self-catering accommodations.
- Emphasis on Sustainability: Environmental concerns are influencing travel choices. Approximately 87% of travelers prefer accommodations that implement sustainable practices, prompting hotels to adopt eco-friendly initiatives.
- Integration of Technology: The adoption of mobile applications and digital platforms has streamlined the booking and planning processes for staycations, offering users real-time information and personalized recommendations.
- Preference for Shorter, Frequent Breaks: There is a growing trend towards taking multiple short breaks instead of extended vacations. In the UK, short break bookings increased by 44%, indicating a shift in travel behavior.
Top Use Cases
- Budget-Friendly Travel: Staycations offer a cost-effective alternative to international travel, allowing individuals to enjoy leisure time without incurring significant expenses.
- Wellness and Mental Health Retreats: With rising awareness of mental health, travelers are opting for staycations that focus on relaxation and well-being, including spa treatments and meditation sessions.
- Family-Friendly Holidays: Families are choosing local destinations that offer amenities suitable for children, such as pools and recreational activities, ensuring convenience and safety.
- Cultural and Culinary Exploration: Travelers are using staycations to explore local heritage and cuisine, with 78% showing interest in understanding the history behind regional delicacies.
- Flexible Work and Leisure Integration: The rise of remote work has enabled individuals to combine work and leisure, leading to the popularity of “bleisure” staycations that cater to both professional and personal needs.
Major Challenges
- Rising Domestic Accommodation Costs : In regions like Scotland, domestic accommodation prices have risen significantly in recent years, making local holidays less affordable for residents. This increase is limiting travel options for many households and impacting local tourism activity
- Taxation Impact on Holiday Homes: Increased taxes on second homes in the UK, including a rise in stamp duty and council tax, may deter investments in holiday properties, reducing availability for staycationers.
- Weather-Dependent Demand: Unpredictable weather conditions can negatively impact the appeal of staycations, particularly in regions where outdoor activities are a primary attraction.
- Limited High-Quality Infrastructure: Some local destinations may lack the infrastructure or amenities expected by travelers, affecting overall satisfaction and repeat visitation rates.
- Competition from International Travel: As international travel becomes more accessible, staycations face competition from overseas destinations offering competitive pricing and diverse experiences.
Top Opportunities
- Development of Wellness Packages: There is potential to create curated wellness packages that combine accommodation with health-focused activities, catering to the growing demand for wellness tourism.
- Promotion of Eco-Friendly Accommodations: Investing in sustainable practices and obtaining green certifications can attract environmentally conscious travelers seeking eco-friendly staycation options.
- Leveraging Technology for Personalized Experiences: Utilizing mobile applications and digital platforms to offer personalized recommendations and seamless booking processes can enhance the staycation experience.
- Targeting the Millennial Demographic: Millennials, averaging 3.1 staycations per year, represent a significant market segment. Tailoring offerings to their preferences can drive growth in this demographic.
- Expansion into Underserved Local Destinations: Exploring and promoting lesser-known local destinations can distribute tourist traffic more evenly and provide unique experiences for staycationers.
Key Player Analysis
In 2024, major players in the global Staycation Market, such as Marriott International, Airbnb, Inc., and Hyatt Hotels Corporation, continue to leverage their vast brand presence and diverse service offerings to meet the evolving demand for domestic travel experiences. Marriott and Hilton, with their extensive global footprint, remain key providers in premium staycations, offering exclusive packages and enhanced experiences tailored to local travelers.
Meanwhile, Airbnb has capitalized on its home-sharing model, catering to those seeking more personalized, unique stays close to home, while Hyatt and Accor Hotels focus on upscale accommodations and luxury retreats. Emerging players like Sonder and Vacasa are disrupting the market with innovative vacation rentals and flexible lodging options. Moreover, platforms such as Booking Holdings and OYO Rooms offer comprehensive booking solutions, broadening access to staycation opportunities. These companies are expected to further shape the market, focusing on competitive pricing, convenience, and enhancing consumer experiences.
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Top Key Players in the Market
- Marriott International
- Airbnb, Inc.
- Hyatt Hotels Corporation
- Hilton Worldwide Holdings
- Accor Hotels
- Wyndham Hotels & Resorts
- InterContinental Hotels Group
- Four Seasons Hotels
- Choice Hotels International
- Booking Holdings Inc.
- OYO Rooms
- Sonder
- Vacasa
- Radisson Hotel Group
- Extended Stay America
Recent Developments
- In 2024, PM Hotel Group and Sightline Hospitality announced a merger aimed at enhancing the growth of PM Hotel Group’s lifestyle division, Modus by PM Hotel Group. By combining Sightline’s innovative property management with their shared experience in experiential travel, the two companies aim to expand their market presence. The merger is expected to strengthen PM Hotel Group’s operations, continuing under its established brand with insights from both organizations’ deep-rooted history and cultural synergy.
- In 2025, the UK hotel investment market saw a remarkable rise, reaching £1.8 billion in the last quarter of 2024, marking a 176% increase compared to the same period in 2023. The surge was driven by significant transactions such as the £900 million sale of ADIA’s Marriott hotel portfolio to KKR’s Amante Capital and Baupost, alongside various sales across major cities like London and Edinburgh. With a total of £6.6 billion in transactions throughout 2024, the market experienced a significant recovery, with the final quarter accounting for 87 properties and over 12,800 rooms.
- In 2024, Haven, the popular UK holiday park operator, experienced a 14% increase in bookings during the half-term period compared to the previous year. Parks in areas like Lincolnshire and Norfolk saw notable growth, with bookings rising by 22% and 15%, respectively. This surge in staycation interest highlights the ongoing appeal of UK-based family holidays, as travelers continue to seek affordable getaway options in popular regions such as Scotland, Wales, and Devon.
- In 2024, a new attraction, the Coco Club, launched in Liverpool’s Concert Square, bringing a beach-inspired experience to the city. In collaboration with Southern Comfort, Modo introduced the Coco Club with a unique design, influenced by vibrant party destinations like Ibiza and Tulum. The space features beach huts, bamboo, and palm leaf arches, offering guests a relaxed atmosphere with table service for up to six people per hut, set to be a summer hotspot in the city.
- In 2023, NH Collection Dubai The Palm launched an exclusive family staycation package, offering a luxurious and memorable experience for families. Situated on Palm Jumeirah, the package includes a stay in a spacious suite with panoramic views, a hearty breakfast each morning, complimentary Wi-Fi, and a 20% discount on dining. Children under twelve enjoy free meals, making it an ideal choice for families seeking relaxation and adventure in one of Dubai’s most iconic destinations.
Conclusion
The staycation market is experiencing a significant transformation, driven by evolving consumer preferences and broader societal shifts. Factors such as the rise of remote work, increased focus on sustainability, and a desire for cost-effective leisure options have contributed to the growing popularity of local vacations. Consumers are increasingly seeking personalized, wellness-oriented experiences that allow them to relax and rejuvenate without the complexities of international travel. This trend has prompted businesses in the hospitality and tourism sectors to innovate, offering tailored packages and services that cater to these new demands. As a result, the staycation market is poised for continued growth, presenting opportunities for stakeholders to capitalize on this emerging segment by aligning their offerings with the changing expectations of modern travelers.
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