The research, based on operator data, global traveller
surveys, economic indicators and supply-side modelling, provides an updated
assessment of the sector’s scale since 2019. According to the report,
experiences have not only recovered from the pandemic but are now growing
faster than other major travel segments.
Key findings show that the sector is expected to exceed $340 billion by 2029, representing an 8% nominal compound annual growth rate (CAGR) from 2023 to 2029, compared with 5% growth for the overall travel industry. Online distribution channels are expanding, with bookings through digital channels projected to rise from 17% in 2019 to 42% by 2029. In 2025, 33% of gross bookings occur online, compared with 64% across the wider travel industry.
Online travel agencies (OTAs) are identified as the
fastest-growing channel, with gross bookings forecast to increase more than
fivefold between 2019 and 2029.
Douglas Quinby, CEO and co-founder of Arival, stated: “For
years, experiences were called travel’s ‘last untapped opportunity’, but this
report marks a turning point. The sector has not only recovered – it is now the
fastest-growing segment of travel, reshaping how people choose where to go and
what to do. Travelers are prioritizing experiences like never before, and that
shift is powering a global market that’s expanding at remarkable speed.”
Pete Comeau, Managing Director of Phocuswright, added: “Experiences
have moved to the center of the travel decision-making process, and travelers
are increasingly booking them online and in advance. This is a profound
behavioral shift. The sector’s rapid digital acceleration, combined with
emerging AI-driven discovery and booking tools, signals a major opportunity for
platforms, operators and investors. The data shows a category that is maturing
quickly – and still has enormous room to grow.”
The report’s release coincides with increased investor activity in the sector.
Companies including Klook and MyRealTrip are preparing
for public offerings, while GetYourGuide has
indicated plans for a share sale. Major travel brands such as Airbnb,
Booking.com and Expedia are expanding
their experiences divisions or acquiring specialist online travel agencies.
The study also highlights structural characteristics
of the sector. More than 70% of operators are classified as small or micro
businesses, and adoption of digital systems remains uneven across markets.
Offline direct sales continue to account for a significant share of bookings in
many destinations. However, the report indicates that further technology
adoption and AI-driven discovery tools are expected to expand the addressable
online market in the coming years.
Tags: Douglas Quinby, Arival, Pete Comeau, Phocuswright