Niche tourism is a term that is used a lot in the tourism industry. But what is niche tourism? It isn’t any one type of tourism- rather, it is a collective term used to group a number of types of tourism. It is an umbrella term.
This article explains what niche tourism is, how it is defined, why it has become so popular and its advantages and disadvantages, with plenty of examples.
What does the term ‘niche’ mean?
Before we can understand what niche tourism is, we first need to understand what is meant by the word ‘niche’.
Niche (pronounced NEE-SH in the UK and NITCH in the US), refers to an area or position that is suitable for a small group of people.
As an adjective, niche can refer to a number of things, including:
- products
- services
- interests
What is niche tourism?
In the context of tourism, niche is referring to products, services or interests that are shared by a small group of people.
Niche tourism is the umbrella term covering a range of types of tourism. Niche tourism products and services serve a specialised segment of the tourism industry.
Niche tourism is the antithesis of mass tourism. It is the opposite of large group tours, all-inclusive holiday resorts and overtourism.
Other terms that identify similar, small market segments include alternative tourism and special interest tourism.
Video: Niche tourism: the future of travel
Macro and micro niche tourism
Essentially, niche tourism identifies forms of micro (small) tourism.
As demonstrated in the diagram below, niche tourism itself can be categorised as a macro (i.e. big) type of tourism. Within this, a number of smaller tourism types can be identified. These are micro forms of tourism.
The list of micro tourism forms listed here is not exhaustive. For a more comprehensive list, see this article on the different types of tourism.
Niche tourism definitions
The term niche tourism hasn’t been around that long. In fact, before the 1990s niche was most commonly used to describe marketing (Robinson & Novelli, 2005).
Definitions have evolved from the concept of niche marketing, so it is useful to look first at how the term niche marketing is defined.
According to Toften and Hammervoll (2009), niche marketing can be understood as a focus on a limited market, which is generally considered to be appropriate for small or specialised businesses.
Stanton, Etzel, and Walker (1991) define niche marketing as ‘a method that meets customer needs by developing products and services especially suited to small markets’.
And Kotler (2003) describes niche marketing as a focus on clients who demonstrate a specific set of needs, who are willing to pay a higher price to companies best suited to supply their demand for goods and services.
One of the most influential texts on niche tourism is Niche Tourism: Contemporary Issues, Trends and Cases, edited by Marina Novelli and published in 2005. In it, Robinson and Novelli introduced the ideas of macro and micro niche tourism outlined above, along with a wide range of examples. Although more than twenty years have passed since its publication, it remains largely valid, although there are now many more forms of niche tourism than there were at the time.
In the same book, Novelli (2005) described niche tourists as independent travellers who choose specialised activities to engage with social life and to become cosmopolitans.
Taking all of this into consideration, niche tourism can be defined as ‘an umbrella tourism form, which identifies macro and micro tourism segments appealing to a specific group of travellers’.
Why has niche tourism become popular?
Niche tourism has grown in popularity a lot in recent years.
This growth is owed to the way that we have changed as consumers. People have become more sophisticated in their wants and needs. Many travellers know exactly what they want from a holiday. The ‘one size fits all’ traditional package tourism model no longer suits.
Around the globe people have become more globalised and more educated. Many want more from their holidays than a nice pool and some evening cocktails.
People want education, culture and adventure, and niche tourism provides these experiences. Social media and online booking have also made it much easier for small, specialist businesses to reach the travellers who are interested in them.
Because niche tourism covers so many different forms of tourism, it is difficult to measure as a whole. However, many individual niches have grown rapidly. The Global Wellness Institute, for example, valued wellness tourism at around US$830 billion in 2023, and adventure, culinary and wine tourism have all seen strong growth.
Advantages of niche tourism
Niche tourism is often viewed as being a more positive form of tourism than mass tourism. This is because it generally involves smaller numbers of tourists who (usually) leave less of a footprint. In fact, it is often associated with sustainable tourism and responsible tourism (rightly or wrongly).
Some of the advantages of niche tourism are:
- It is less damaging on the environment
- Tourists come in smaller numbers
- Tourists tend to be more courteous and respectful
- Niche tourists often pay more than mass tourists
- There is a genuine interest in the local area and people
Of course, these advantages are not a given. It is impossible to generalise such a broad group of tourism types!
Disadvantages of niche tourism
There are also disadvantages of niche tourism. The main issue is the small size of businesses and an inherent over reliance on tourism.
Some of the main problems commonly noted are:
- A lack of alternative revenue streams
- Too many visitors are attracted
- Niche businesses take business away from elsewhere
- Some niches are not environmentally friendly, such as golf tourism.
- Small visitor numbers means that the economic benefits are limited
- Niche tourism activities can come in and out of ‘fashion’ and popularity
Ultimately, it is careful tourism planning and sustainable tourism management that will reduce any negative impacts of tourism. Therefore, it is actually a misconception that niche tourism is better than mass tourism. The impacts depend entirely on the type of tourism that is in question.
Examples of niche tourism
There are many examples of niche tourism around the world.
Below are some of the most common types of niche tourism. Follow the links to learn more about each one.
- Adventure tourism
- Agritourism
- Ancestry tourism
- Begpacking
- Couchsurfing
- Cruise tourism
- Cultural tourism
- Dark tourism
- Disaster tourism
- Ecotourism
- Educational tourism
- Enclave tourism
- Food tourism
- Health and medical tourism
- Homestay tourism
- Insta tourism
- Pro-poor tourism
- Rural tourism
- Sex tourism
- Slow tourism
- Smart tourism
- Space tourism
- Sustainable tourism
- Volunteer tourism
- Virtual tourism
- WWOOFING
- Industrial tourism
- Pilgrimage tourism
- Red tourism
- Religious tourism
- Slum tourism
- Wine tourism
- Bike-packing
Niche tourism: FAQs
Below are answers to some of the most common questions about niche tourism.
What is niche tourism?
Niche tourism is an umbrella term for specialised forms of tourism that appeal to a specific group of travellers with particular interests, such as wine tourism, dark tourism, adventure tourism or volunteer tourism. It is generally seen as the opposite of mass tourism.
What are examples of niche tourism?
Examples of niche tourism include adventure tourism, agritourism, culinary tourism, dark tourism, ecotourism, medical tourism, pilgrimage tourism, slow tourism, space tourism, volunteer tourism and wine tourism.
What is the difference between macro and micro niche tourism?
Macro niches are broad categories, such as cultural, rural or sport tourism. Micro niches are more specialised segments within these, such as wine tourism, golf tourism or genealogy (ancestry) tourism.
What is the difference between niche tourism and mass tourism?
Mass tourism involves large numbers of people buying standardised products, such as package holidays to beach resorts. Niche tourism involves smaller numbers of travellers buying specialised products tailored to their particular interests.
Is niche tourism more sustainable than mass tourism?
Not necessarily. Niche tourism often involves fewer visitors and greater respect for local people, but some niches (such as golf or space tourism) have large environmental impacts, and popular niches can attract too many visitors. Careful planning and management matter more than the type of tourism.
Further reading
For anyone interested in learning more about niche tourism, the two texts outlined below are a good starting point.
Niche Tourism: Contemporary Issues, Trends and Cases (Novelli, 2005)- provides an integrated picture of speciality/niche tourism as a whole looking at both the ‘macro’ and ‘micro’ niche area. It combines a theoretical framework with international case studies.
The Long Tail of Tourism: Holiday Niches and their Impact on Mainstream– The ‘long tail’ of holiday offerings implies dramatic shifts in the sector’s concentration levels and its competitive dynamics. In order to examine the applicability and validity of this scenario, a number of key holiday niches are examined in terms of their demand development, supplier landscapes, operational challenges and future potential.
