Global Net-Zero Travel Market Size Likely to Grow at a CAGR of 12.1% By 2033

As per the current market research conducted by the CMI Team, the global Net-Zero Travel Market size is expected to record a CAGR of 12.1% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 71,884.2 Million. By 2033, the valuation is anticipated to reach USD 200,948.2 Million.

Net-Zero Travel Market: Growth Factors and Dynamics

• Environmental Awareness and Concerns: Increasing awareness of environmental issues such as climate change is driving the demand for net-zero travel options. Consumers are increasingly seeking travel experiences that minimize their carbon footprint and contribute to environmental sustainability.

• Government Policies and Regulations: Stringent regulations and government policies aimed at reducing greenhouse gas emissions are pushing the travel industry towards adopting net-zero practices. Governments are implementing incentives and regulations to encourage sustainable travel, such as carbon taxes and subsidies for eco-friendly transportation options.

• Technological Advancements: Technological innovations in transportation, accommodation, and energy management are enabling the development of net-zero travel solutions. Advancements in electric vehicles, renewable energy, and green building technologies are facilitating the transition towards sustainable travel practices.

• Consumer Preferences and Market Trends: Changing consumer preferences towards sustainable and experiential travel are driving the growth of the net-zero travel market. Travelers are increasingly seeking authentic and immersive experiences that align with their values, including eco-friendly accommodations and responsible tourism practices.

• Industry Collaboration and Partnerships: Collaboration among stakeholders in the travel industry, including airlines, hotels, tour operators, and destination management organizations, is accelerating the adoption of net-zero practices. Partnerships between governments, businesses, and non-profit organizations are driving innovation and investment in sustainable travel infrastructure and services.

• Corporate Sustainability Initiatives: Businesses across the travel sector are integrating sustainability into their operations and business models to meet consumer demand and enhance their brand reputation. Corporate sustainability initiatives, such as carbon-neutral commitments and eco-certifications, are driving industry-wide efforts to reduce emissions and promote sustainable travel practices.

• Emerging Market Opportunities: Emerging markets present significant opportunities for the growth of the net-zero travel market as they undergo rapid urbanization and economic development. Investments in sustainable infrastructure, eco-tourism initiatives, and renewable energy projects are unlocking new market potential and attracting environmentally conscious travelers to these regions.

Net-Zero Travel Market: Partnership and Acquisitions

• In 2024, Janu, Aman Resorts’ sister brand, debuted its first hotel in Tokyo, signaling the beginning of a series of planned expansions with 12 properties in the pipeline. Located in Azabudai Hills, Janu Tokyo boasts 122 guestrooms, eight dining venues, and a sprawling spa and wellness center.

• In 2023, Flight Centre Travel Group, based in Australia, acquired Scott Dunn Ltd. for around USD 149 million, marking its strategic entry into the luxury travel market in the UK and the U.S. This move accelerates the company’s efforts to build a portfolio of luxury travel brands.

Report Scope

Net-Zero Travel Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Net-Zero Travel Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Reduced Travel Demand: COVID-19 led to widespread travel restrictions, lockdowns, and border closures, resulting in a significant decline in travel demand globally. The decrease in travel activity resulted in reduced emissions from transportation but also disrupted the momentum of net-zero travel initiatives.

• Financial Strain on Sustainability Initiatives: The economic impact of the pandemic strained the resources of businesses and governments, diverting funding away from sustainability initiatives in the travel industry. Many organizations faced financial challenges, leading to cutbacks in sustainability programs and investments in net-zero travel solutions.

• Government Support and Stimulus Packages: Governments can provide financial support and stimulus packages specifically targeted at promoting sustainable travel and infrastructure development. Investments in renewable energy projects, green transportation, and eco-tourism initiatives can stimulate recovery and drive the transition towards net-zero travel.

• Renewed Focus on Sustainability: The pandemic highlighted the importance of resilience and sustainability in the travel industry, leading to a renewed focus on net-zero practices. Businesses are integrating sustainability into their recovery strategies, adopting eco-friendly measures, and prioritizing responsible tourism to attract conscientious travelers.

• Innovation in Technology and Operations: Advancements in technology, such as digitalization, contactless services, and remote working solutions, are reshaping travel experiences and reducing environmental impact. Businesses are innovating in operations and logistics to optimize resource use, minimize waste, and enhance energy efficiency in their operations.

• Promotion of Domestic and Sustainable Tourism: With international travel restrictions in place, there’s a growing emphasis on promoting domestic and sustainable tourism. Governments and tourism boards are encouraging travelers to explore local destinations, support small businesses, and engage in eco-friendly activities that contribute to community development and environmental conservation.

• Collaboration and Partnerships: Collaboration among stakeholders in the travel industry is essential for driving recovery and accelerating the transition to net-zero travel. Public-private partnerships, industry collaborations, and cross-sector alliances can foster innovation, knowledge sharing, and collective action towards achieving sustainability goals in the travel sector.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Net-Zero Travel Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Net-Zero Travel Market:

• Expedia Group
• Airbnb Inc.
• Booking Holdings Inc.
• Delta Air Lines Inc.
• United Airlines Holdings Inc.
• Hilton Worldwide Holdings Inc.
• Marriott International Inc.
• American Airlines Group Inc.
• Hertz Global Holdings Inc.
• InterContinental Hotels Group PLC
• Southwest Airlines Co.
• Lufthansa Group
• Emirates Group
• Carnival Corporation & plc
• Norwegian Cruise Line Holdings Ltd.
• Others

The Net-Zero Travel Market is segmented as follows:

By Mode of Transportation

• Air Travel
• Rail Travel
• Road Travel
• Water Travel

By Destination Type

• Urban Destinations
• Nature-Based Destinations
• Adventure Destinations
• Cultural Destinations

By Traveler Demographics

• Leisure Travelers
• Business Travelers
• Family Travelers
• Solo Travelers

By Sustainability Initiatives

• Carbon Offsetting Programs
• Sustainable Accommodations
• Responsible Tourism Practices
• Eco-Friendly Transportation

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America