According to research released by Phocuswright, the global travel market is forecasted to grow between 6-10% per year through 2026.  

The industry has now exceeded pre-pandemic levels, recording a 24% jump in gross bookings in 2023, and a total spend of $1.5 trillion.

Phocuswright’s Global Travel Market Report 2024 highlights the growing dominance of online travel, projected to expand at almost 10% between 2023 and 2026.  

This digital shift is driven by evolving consumer behavior, improved 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 solidified its position as the world’s largest regional travel market, but Europe and APAC are leading the way in online penetration, surpassing North America in 2023 and with APAC expected to reach this mark in 2024.

While suppliers maintain a slight edge in overall online bookings, OTAs dominate the hotel segment.  The top five travel markets – the U.S., China, Japan, Germany, and France – are poised for a shake-up, with the U.K. projected to enter the top five by 2025.

The key findings revealed that the global travel market jumps 24%. The industry has not only recovered but exceeded 2019’s gross bookings of $1.5 trillion.

Online travel is leading the charge, with a projected compound annual growth rate (CAGR) of 9.8% from 2023-2026.

North America is on the rise, as the region has emerged as the world’s largest travel market.

APAC and Europe lead in online penetration as Europe has surpassed North America in 2023, with APAC expected to follow suit in 2024.

It also found that suppliers dominate online bookings overall, but OTAs lead in the hotel segment.

Finally, the US, China, Japan, Germany, and France currently hold the top spots, but the UK is poised to enter the top five by 2025.

These findings and more will be explored in-depth at The Phocuswright Conference, taking place November 19-21 in Phoenix, Arizona.  

“Our latest research reveals a travel industry not just rebounding, but evolving,” said Eugene Ko, director of marketing and communications at Phocuswright. 

“The accelerated shift to online bookings 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 rapidly changing landscape.”