AIRLINES & ALLIANCES

Arival / Phocuswright report: The Outlook for Travel Experiences 2019–2029

GLO

26 February 2026 

A new authoritative industry forecast, The Outlook for Travel Experiences 2019–2029, co-authored by Arival and Phocuswright, lays out a decade-long view of one of travel’s fastest-evolving segments: in-destination experiences. Spanning tours, activities and attractions, this segment has grown steadily for years and is now emerging from the pandemic with a fundamentally transformed market structure and growth trajectory that will shape travel through the rest of this decade.

The report offers the most comprehensive global market sizing and forecast to date, combining proprietary operator and traveler research with regional and channel analysis. It underscores how consumer behaviors, distribution technologies and business models have shifted since 2019—and how those shifts will define the experiences economy through 2029.

A Trillion-Dollar Sector Rediscovered

Before COVID-19 struck, travel experiences accounted for roughly $253 billion in global gross ticket revenue in 2019, ranking this segment as the third-largest sector of the travel industry behind transportation and accommodation.

The pandemic’s impact was dramatic: operators worldwide faced steep declines in demand. But the sector has steadily rebounded. Recovery dynamics vary by region and category, but global bookings are expected not only to return to pre-pandemic levels, but to outpace them in the coming years, reflecting a structural increase in traveler demand for immersive experiences.

Key Historical & Forecast Trends Highlighted:

• The sector grew ~6% in 2019—outpacing overall tourism growth.

• Travel experiences rebounded rapidly after 2020 disruptions and are projected to reach or exceed 2019 gross bookings by 2024 in many markets.

• The 2019–2029 outlook frames experiences as a major growth frontier for the decade ahead.

Digital Distribution Is Reshaping Customer Access

One of the most consequential trends in recent years has been the dramatic rise of digital booking channels. Arival and Phocuswright note that while the experiences segment historically lagged other tourism sectors in online adoption, the pandemic accelerated digital transformation among both operators and travelers.

Online channels now capture a much larger share of bookings, reshaping how suppliers reach customers.

Distribution trends include:

• Online booking share climbing sharply from 17% in 2019 to nearly 30% by 2021.

• OTAs (Online Travel Agencies) emerging as fastest-growing channels, with bookings forecast to grow from under $8 billion in 2019 to nearly $20 billion by 2025.

• Operator websites—especially for attractions—also gaining traction as digital adoption expands.

This shift reflects broader behavior changes: travelers increasingly plan and book experiences online, often via mobile devices, while operators invest heavily in digital marketing, booking technology and distribution integration to stay competitive.

Sector Evolution: Fragmented But Dynamic

The experiences market is uniquely diverse. Arival’s research identifies nearly one million distinct operators worldwide, spanning everything from cultural monuments, food tours and outdoor adventures to amusement parks and boutique niche offerings.

This fragmentation has important strategic implications:

• Small and micro-businesses dominate the supply side, with a high proportion of operators generating modest annual revenues.

• Investment activity—including nearly $900 million raised by travel experience startups since 2017—signals strong interest from capital markets in scaling distribution and technology solutions.

• Consolidation pressures are likely to rise as digital channels and OTAs gain influence, shaping competitive dynamics over the next decade.

Regional And Segment Outlook

While global recovery is well underway, the pace and profile of growth vary significantly by geography and category.

• North America and Europe have led the rebound, driven by strong domestic demand and mature distribution infrastructure.

• As international travel returns, other regions—especially Asia Pacific—are expected to re-emerge and contribute more prominently.

• Segments such as outdoor activities, small-group tours and culturally immersive experiences are growing faster than more traditional mass attractions.

Implications For Operators And Investors

For travel companies, the forecast highlights both opportunities and challenges:

• Digital readiness matters: Operators that optimize online distribution and mobile booking will benefit from accelerating channel shifts.

• Channel strategy must evolve: Balancing direct sales, OTAs and niche platforms will be critical to capturing demand without sacrificing margin.

• Innovation and differentiation are key: As traveler expectations evolve, operators offering personalized, niche and high-value experiences are better positioned for growth.

For investors, the experiences sector’s resilience and long-term growth trajectory make it one of travel’s most promising sub-domains—particularly for technology and platform providers that connect supply with global demand.

Looking Ahead

As the travel industry continues its post-pandemic recovery, The Outlook for Travel Experiences 2019–2029 provides a data-rich roadmap for understanding where the market has been and where it’s headed. Arival and Phocuswright’s forecast underscores that experiences remain central to both traveler preferences and industry growth—cementing their place as a core pillar of the next decade in global tourism.

Source: Arival / Phocuswright.