Tour Buses Market - By Vehicle (Motor coaches, Minibuses, Double-decker Buses), By Propulsion (ICE, Electric, Hybrid), By Seating Capacity (Up to 30 Seats, 31-50 Seats, Above 50 Seats), By Tour Type & Forecast, 2024 – 2032

Tour Buses Market Size

Tour Buses Market was valued at USD 30.6 billion in 2023 and is estimated to register a CAGR of over 7.5% between 2024 and 2032 due to increasing launches of new tour bus services by leading organizations. This surge is fueled by the growing popularity of travel and tourism, leading to an increased demand for convenient and comfortable transportation options. Leading organizations in the travel industry are continuously innovating their services to attract more customers.
 

For instance, in February 2024, in a move to boost tourism in Varanasi, the Varanasi City Transport Service Limited (VCTSL) inaugurated the "Kashi Darshan" bus service. These air-conditioned electric buses will be taking tourists to major temples like Kashi Vishwanath, Sankat Mochan, Kalbhairav, Tulsi Manas, and Durgakund.
 

These buses offer features such as luxury interiors, Wi-Fi connectivity, and guided tours, making the experience more appealing to travelers. Additionally, the expansion of tourism infrastructure in various regions has created new opportunities for tour bus operators. Consequently, the market for tour buses is witnessing steady growth, with more people opting for these services for their travel needs.
 

The market demand for tour buses is experiencing a notable increase due to rising government support, including tax relief and other forms of assistance aimed at bolstering tour bus operators. This surge is attributable to several factors. Firstly, governments worldwide are recognizing the importance of tourism as a driver of economic growth and are thus incentivizing industry through various means.
 

These incentives often include tax breaks, subsidies, or grants specifically tailored for tour bus companies. Additionally, by reducing taxes and offering financial support, governments aim to encourage more people to travel domestically or internationally, leading to increased demand for tour bus services. Consequently, the tour bus market is witnessing a positive trend, with operators benefiting from government initiatives designed to promote tourism and ease operational costs. For instance, in February 2024, a budget released by the government proposed a significant relief for interstate tourist-bus operators in Tamil Nadu by reducing taxes on buses with all-India tourist permits (AITPs).
 

The tour buses market faces several restraints that affect its growth and operation. One significant restraint is the high operational costs associated with maintaining and running tour buses. These costs include fuel, maintenance, insurance, and labor expenses, which can be substantial for tour bus companies. Moreover, fluctuations in fuel prices can further strain operating budgets. Another restraint is regulatory hurdles and compliance requirements imposed by governments, which vary from region to region and can add complexity and costs to the operation. Additionally, competition from other modes of transportation, such as trains and private vehicles, poses a challenge for tour buses, especially in regions with well-developed transportation infrastructure. Finally, external factors like economic downturns or natural disasters can negatively impact tourism and reduce demand for tour bus services.
 

Tour Buses Market Trends

The tour buses industry is witnessing notable trends driven by the rising special offers and services provided by leading organizations. As competition intensifies, companies are differentiating themselves by offering unique experiences and services to attract customers. Leading organizations are increasingly focusing on providing value-added services such as guided tours, onboard entertainment, and exclusive access to attractions.
 

Moreover, they are offering special discounts, package deals, and loyalty programs to incentivize repeat business. Additionally, many tour bus operators are investing in luxury amenities such as comfortable seating, Wi-Fi connectivity, and gourmet dining options to enhance the overall travel experience. These trends indicate a shift towards personalized and high-quality services, catering to the evolving preferences of travelers and driving the growth of the tour buses market.
 

To cite an instance, in July 2023, the Telangana State Road Transport Corporation (TSRTC) introduced a special super luxury bus tour package for the convenience of devotees visiting Shri Kshetra Ganagapur Dattatreya temple, a prominent shrine in Gulbarga, Karnataka, and other renowned shrines in Maharashtra.
 

Tour Buses Market Analysis

Based on propulsion, the market is divided into ICE, electric, and hybrid. In 2023, the internal combustion engine (ICE) segment accounted for a market share of around 80% and is expected to exceed USD 41 billion by 2032. ICE propulsion remains a dominant force in the tour bus industry, offering reliability, range, and affordability. Despite the emergence of alternative fuel technologies, such as electric and hybrid propulsion, ICE-powered buses continue to meet the demands of long-distance travel and rugged terrains. Moreover, advancements in ICE technology have led to improved fuel efficiency and reduced emissions, making them a preferred choice for many tour bus operators, thus sustaining the demand in the market.
 

Based on the tour type, the market is categorized into sightseeing tours, day tours, multi-day tours, adventure tours, cultural tours, and educational tours. The sightseeing tours segment accounted for around 37% of the market share in 2023. These tours offer travelers an immersive experience, allowing them to explore popular attractions and landmarks comfortably. Tour buses provide an ideal platform for sightseeing, offering panoramic views and insightful commentary from knowledgeable guides. As travelers seek convenient and informative ways to explore new destinations, the demand for sightseeing tours continues to grow. Tour bus operators are capitalizing on this trend by offering a variety of sightseeing tour packages, catering to different interests and preferences, thereby sustaining the demand for tour buses in the market.
 

Asia Pacific holds a market share of around 43% in the global tour bus market in 2023. With its diverse landscapes, rich cultural heritage, and booming adventure tourism industry, countries in Asia Pacific attract millions of travelers each year. Tour buses play a crucial role in accommodating the needs of these tourists, offering convenient transportation for sightseeing and exploration. As the region continues to experience rapid urbanization and economic growth, the demand for tour buses could rise further. To meet this growing demand, tour bus operators are expanding their fleets and enhancing their services, ensuring a comfortable and memorable travel experience for visitors to Asia Pacific.
 

The U.S. is a significant demand driver in the tour buses market. With its vast territory, diverse landscapes, and countless attractions, tour buses provide an essential means for travelers to explore the country comfortably. From bustling cities to scenic national parks, tour buses offer convenient transportation and guided tours, catering to a wide range of interests and preferences. As domestic and international tourism continues to thrive, the demand for tour buses in the U.S. remains strong, making it a vital segment of the transportation industry.
 

Cities like London, Edinburgh, and Manchester are popular urban tourist destinations in the UK, offering a wealth of attractions, shopping districts, and entertainment venues. Tour buses provide guided city tours, hop-on-hop-off services, and themed excursions, catering to the needs of urban tourists seeking immersive experiences and local insights.
 

The UAE is known for its luxury and premium travel experiences, catering to high-net-worth individuals and affluent tourists. Tour operators in the UAE offer luxury coach tours, private charters, and VIP experiences aboard deluxe tour buses equipped with amenities such as leather seats, onboard entertainment systems, and personalized services.
 

Tour Buses Market Share

Daimler AG and Volvo Group hold a significant market share in the tour buses industry.  Daimler AG embraces digitalization and connectivity solutions to enhance the functionality and value proposition of its tour buses. The company integrates advanced onboard technologies, such as digital displays, multimedia entertainment systems, and telematics platforms (e.g., Mercedes PRO Connect), to provide passengers with a seamless and immersive travel experience while enabling operators to optimize fleet management and performance monitoring.
 

Volvo Buses focuses on innovation and technological advancement to differentiate its products and stay competitive in the market. The company invests in research and development to introduce new features, such as advanced safety systems, eco-friendly drivetrains (e.g., electric and hybrid propulsion), and connectivity solutions enhancing the value proposition for customers.
 

Tour Buses Market Companies

Major players operating in the market are:

• Alexander Dennis Limited (ADL)
• BYD Company Limited
• Daimler AG (Mercedes-Benz)
• Gillig Corporation
• MAN Truck & Bus
• Marcopolo S.A.
• VDL Groep
• Volvo Group
• Yutong Group
• Zhongtong Bus Holding Co., Ltd.
   

Tour Buses Industry News

• In March 2024, Volvo Buses expanded its European electromobility range to encompass operations beyond city limits by introducing the new Volvo 8900 Electric, designed for city, intercity, and commuter operations.
   
• In November 2023, two electric double-decker buses were poised to reach Thiruvananthapuram for KSRTC's budget tours. These buses, acquired from Ashok Leyland for 4 crores under the Central Government's Smart City scheme, were constructed in Mumbai.
   

The tour buses market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and shipment (Units) from 2021 to 2032, for the following segments:

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Market, By Vehicle

• Motor coaches
• Minibuses
• Double-decker buses

Market, By Propulsion

• ICE
  • Diesel
  • CNG
• Electric
• Hybrid

Market, By Seating Capacity

• Up to 30 seats
• 31-50 seats
• Above 50 seats

Market, By Tour Type

• Sightseeing tours
• Day tours
• Multi-Day tours
• Adventure tours
• Cultural tours
• Educational tours

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of MEA