Growth in the main tourist markets is expected to be between 6 and 10% annually until 2026
The sector has already surpassed pre-pandemic levels, recording a 24% increase in gross bookings in 2023, and total spending of $1.5 trillion
Phocuswright’s Global Travel Market Report 2024 highlights the increasing dominance of online travel, which is projected to grow by nearly 10% between 2023 and 2026. This digital shift is driven by evolving consumer behavior, improving digital infrastructure, and technological advancements. By 2026, online bookings are expected to account for 65% of all travel bookings globally, up from 61% in 2023.
North America has consolidated its position as the world’s largest regional travel market, but Europe and APAC are leading the way in online penetration, overtaking North America in 2023 and APAC expected to reach this mark in 2024.
Although suppliers retain a slight advantage in online bookings overall, OTAs dominate the hotel segment. The top five travel markets – the US, China, Japan, Germany and France – are set to change, with the UK expected to be in the top five by 2025.
Key findings:
Global travel market soars 24%: The sector has not only recovered, but has surpassed gross bookings of 1.5 trillion dollars in 2019
Online bookings are on the rise: Online travel is leading the trend, with a projected compound annual growth rate (CAGR) of 9.8% between 2023 and 2026.
North America on the rise: The region has become the largest travel market in the world.
APAC/Europe leads online penetration: Europe overtook North America in 2023, and APAC is expected to follow suit in 2024.
Suppliers vs. OTAs: Suppliers dominate online bookings overall, but OTAs lead in the hotel segment
Shift in top markets: The US, China, Japan, Germany and France currently occupy the top spots, but the UK is on track to enter the top five by 2025.
These and other findings will be discussed in depth at the Phocuswright Conference, taking place November 19-21 in Phoenix, Arizona. Under the theme “The New Era(s),” the conference will feature top industry speakers discussing the future of travel distribution and technology.
According to Eugene Ko, Marketing and Communications Director at Phocuswright, “Our latest research reveals that the travel industry is not just recovering, it is evolving. The accelerated shift to online booking and the varying pace of digital adoption across regions highlight both the opportunities and challenges ahead. It will be crucial for industry players to understand these nuances to remain competitive in this ever-changing, fast-paced environment.”
Phocuswright’s Global Travel Market 2024 report provides comprehensive market sizing and projections from 2019 to 2026, leveraging a combination of primary and secondary research, including surveys, interviews, and industry data analysis, to deliver insights into key segments, trends, and distribution dynamics across six regions. This study answers crucial questions about the industry’s post-pandemic recovery, online booking growth, regional variations, and emerging trends in distribution channels.
Fuente: Phocuswright.