Phocuswright, a leading travel research firm, has projected that the global travel market will grow between 6% and 10% annually through 2026, surpassing pre-pandemic levels with a total spending of $1.5 trillion in 2023.
A key trend highlighted in Phocuswright’s Global Travel Market Report 2024 is the rise of “online travel,” which is anticipated to grow at a rate of 10% from 2023 to 2026. By 2026, online bookings are expected to account for 65% of all travel bookings, up from 61% in 2023.
Key insights from the report include:
Market Surge: The global travel market has seen a 24% increase, exceeding the gross bookings of $1.5 trillion recorded in 2019.
Online Bookings Leading Growth: The online travel sector is poised for significant growth, with a projected compound annual growth rate (CAGR) of 9.8% from 2023 to 2026.
North America Dominates: North America has solidified its status as the largest travel market worldwide.
Regional Online Penetration: Europe surpassed North America in online booking penetration in 2023, with the Asia-Pacific region expected to follow in 2024.
Market Dynamics: While suppliers dominate overall online bookings, online travel agencies (OTAs) are leading in the hotel segment.
Shifts in Leading Markets: Currently, the top markets are the U.S., China, Japan, Germany, and France, with the U.K. likely to enter the top five by 2025.
These findings will be explored in greater detail at The Phocuswright Conference, scheduled for November 19-21 in Phoenix, Arizona, under the theme “The New Age(nts),” focusing on the future of travel distribution and technology.
Eugene Ko, Director of Marketing and Communications at Phocuswright, noted, “The accelerated shift to online bookings and the varying pace of digital adoption across regions highlight both opportunities and challenges ahead. Understanding these nuances will be crucial for industry players to remain competitive in this rapidly changing landscape.”
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