DMS Market to Reach $6.9B by 2032

Monday, November 27, 2023

According to Allied Market Research, the Destination Management Service (DMS) market will grow significantly, with a projected value of $6.9 billion by 2032. The market, which was worth $3.6 billion in 2022, is expected to grow at a 6.8% CAGR from 2023 to 2032.

Leisure travel emerges as a key player, accounting for nearly one-third of the global market and forecasting the highest CAGR of 7.2% over the forecast period. The increased awareness of environmental and social issues has resulted in an increase in sustainable and responsible tourism trends, which are shaping the DMS market. Travelers are now prioritizing destinations and service providers that are committed to environmentally friendly practices and community support.

Sustainable offerings, such as eco-tours and community-based excursions, are becoming increasingly popular among DMS providers. These providers provide tailored experiences, handle logistics, and promote destinations, ensuring that travelers have a hassle-free and memorable visit. This approach not only improves the tourist experience but also contributes to the DMS market’s positive growth.

The travel industry is being transformed by technology, and DMS providers are adapting to remain competitive. Mobile applications, AI, data analytics, and virtual reality are improving customer experiences, streamlining operations, and providing personalized services. This technological integration enables real-time information, virtual tours, and customized marketing campaigns.

Adventure, wellness, culinary, and cultural tourism are all growing in popularity. DMS companies can capitalize on this trend by developing targeted marketing strategies and creating customized itineraries. Collaborations with local businesses and experts allow for the curation of unique and authentic experiences for niche travelers.

The report examines the DMS market by service type, application, client type, and region. Event management has a sizable market share, while accommodation booking is expected to grow at the fastest rate of 7.3%. Leisure travel dominates in terms of application, with a projected CAGR of 7.2%, and the event planner segment holds the largest market share.

In 2022, North America accounted for nearly two-fifths of the total market share. Meanwhile, Asia-Pacific is expected to grow at the fastest rate during the forecast period, with a rise in middle-class travelers seeking customized and experiential travel experiences driving growth.

Key players in the DMS industry, such as AlliedPRA, Hello! Destination Management, and Global DMC Partners, are enhancing their market positions through strategic approaches such as acquisitions, business expansion, partnerships, and product launches.

« Back to Page