This chapter explains the benefits of domestic tourism. It discusses the size and importance of domestic tourism in selected countries and analyses the domestic and international tourism contributions. The chapter outlines the trends and prospects for domestic tourism. It reviews the major challenges in the marketing and development of domestic tourism. The chapter describes some major segments of domestic tourism including the family, multi-generational and luxury travel markets. It provides an overview selected special-interest markets, including agritourism, golf, museum and theme park travel. The chapter explores a systematic, step-by-step approach to the marketing of domestic tourism. Identify and describe a select number of domestic tourism marketing and promotion campaigns. It examines the visiting friends and relatives (VFR) market, and explain its importance for domestic tourism. The chapter presents the reasons the positive impacts of the VFR market are sometimes underestimated. VFR travel is closely linked with pleasure and leisure travel, and it is significant in both domestic and international tourism.