Industry Insights
The global wellness tourism market revenue was valued at USD 639.65 billion in 2017 and is expected to reach USD 1,062.83 billion by 2025. Increasing willingness to adopt wellness lifestyles coupled with rising affordability of flights and travel options and growing interest in empirical travels will augment the market growth. Also, consumers desire to enhance their mental, as well as physical wellbeing, has favored the demand for these services worldwide. Furthermore, increasing hectic lifestyles characterized by work-related stress will augment the market growth across the globe.
Also, increasing spending on the tourism sector will pose a positive impact on market growth. The wellness service providers are focusing more on offering various wellness services including the aroma and spa therapies to ensure customer satisfaction. Unlike medical tourism, these services focus majorly on the prevention of diseases by emphasizing on a healthy lifestyle and ensuring improved quality of life while the former involves traveling to avail the treatment for a diagnosed medical condition. Wellness tourism an umbrella term encompasses several industries that drive their customers to lead a healthy lifestyle.
The increasing presence of sedentary workstyles coupled with lack of exercise and physical activity has led to the occurrence of several lifestyle disorders such as diabetes, high cholesterol levels, and obesity. Hence, the rising economic burden of these diseases will augment the market growth. According to the data enumerated by the World Health Organization, by the year 2030, the global burden of diseases will rise to 56%, and the number of global deaths due to these diseases will increase to 70%.
The surge in the disposable income has resulted in the rising demand for wellness goods and services as a result of widening health-conscious population worldwide. The service providers, on the other hand, issue some of the services to their customers for the vacations and extra funds for the trips.
These companies release additional benefits to clients for domestic and international services. Such factors drive the number of expenditures for a healthy and luxurious lifestyle in the market. For instance, InterContinental Hotels Group is providing 15-20% discount to its regular customers in a few countries such as the U.S., Canada, Mexico, and Brazil.
Segmentation by Product
• Domestic
• International
The domestic segment acquired the largest market share in the global wellness tourism market and was valued at USD 432.99 billion in 2017. It is projected to reach a market size of USD 656.51 billion by 2025, growing at a CAGR of 5.3% by 2025.
This can be attributed to the rising expenditure recorded by the average tourists than the domestic wellness tourists in the market. As per the research studies in the year 2017, a domestic tourist spent around 150% more than the average tourists on wellness services such as lodging, shopping, and food & beverages.
The international segment is the fastest category in the market growing at a CAGR of around 8.8% over the forecast period. The significant growth in the market is attributed to the high spending per trip from the consumers in the market. However, a substantial rise in the number of tours has been recorded for the international market. In 2017, a growth of around 22% had been observed in the number of tours from the last few years.
Moreover, the expenditures on international services have been at arise due to the growing number of tourist attractions in the developed countries. However, in 2017, more than 125 million trips were recorded from international tourists, a significant rise supporting acceptance of the wellness services across the globe. The spending on social and physical wellbeing especially due to a luxurious and healthy lifestyle has driven the demand for the services in the market.
Segmentation by region
• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East & Africa
North America dominated the global market accounting for 39.79% share in 2017 and is expected to grow at a CAGR of around 5.02% by the end of 2025. The rising number of wellness expenditures coupled with the rigorous efforts of the market players towards offering novel and lucrative packages in well-developed countries such as the U.S. has enhanced the demand for these services in the market.
The consumers are well attracted to different services such as weight loss programs, beauty treatments, spa therapies, anti-aging treatments, and yoga programs to boost their mental and physical wellbeing. However, the rising need for such services due to the rise in stress level and competitive work environment has propelled the market.
Asia Pacific is the fastest growing region in the global market growing at a CAGR of around 10.42% till the end of 2025. The market held a significant share of about 21.37% in 2017. The advancements in technology and the rising disposable income in the developing countries such as India, and China has driven the demand the demand for international services over the forecast period. These countries are actively involved in national interests through their services such as meditation, Ayurveda and yoga health. In 2016, India initiated a National Medical & Wellness Tourism Promotion and its board to provide services among these sectors.
Competitive Landscape
The market service providers such as Intercontinental Hotels Group, Marriott International, Hilton Worldwide, and Accor Hotels are actively promoting and utilizing large sectors of services such as lodging, food and beverage, shopping, activities, and excursions. Moreover, they are providing essential services to promote different industries in the domestic and international markets.
The price of principal services is always fluctuating. However, market players apply hedging techniques to reduce the impact of price fluctuation on principle services in the international market. For instance, in February 2018, Tavistock Development Company partnered with Signet LLC to provide innovative services of medical fitness in Lake Nona, Orlando.
The market players are continuously striving to introduce new improvements to the existing services focused on the anticipated consumer demands and market trends. Presently, market players provide services and promotional strategies through online portals. They promote their services directly via their websites, third-party portals, and promotional organizations.
However, the majority of the consumers avail the services offered by independent sales offices and agents present at international locations. For instance, in November 2017, Rosewood Hotels launched a brand Asaya for spa therapies, nutrition coaching, healing practices educational wellness programming, fitness activities, lifestyle tips in Rosewood Phuket, Thailand. Hence, consistent modifications and personalized package offerings by the service providers ensure the increased acceptance worldwide.
