While in-destination experiences keep growing at rates faster than the overall travel industry, there are still many issues to solve before becoming fully digitized, organized and profitable. But one look at the addressable market indicates huge potential for the next decade and beyond, according to Phocuswright and Arival’s latest research report, The Outlook for Travel Experiences 2019-2029.
How the sector embraces these opportunities to build rich, sustainable businesses will define its future.
- Experiences reached $271 billion in 2025, surpassing pre-pandemic levels and growing faster than the broader travel industry.
- The sector is projected to exceed $340 billion by 2029, with an 8% nominal compound annual growth rate from 2023-2029—compared with 5% for travel overall.
- Online channels are scaling rapidly, rising from 17% of bookings in 2019 to a projected 42% by 2029.
- Online travel agencies are the fastest-growing channel, with gross bookings expected to increase more than fivefold from 2019 to 2029.
- The sector is still significantly under-digitized, with just 33% of gross bookings taking place through online channels in 2025, compared to 64% for the global travel industry.
The Outlook for Travel Experiences 2019-2029
Phocuswright and Arival's joint research project is sponsored by Civitatis.