The new Arival and Phocuswright research “The Outlook for Travel Experiences 2019-2029- The Global Travel Market 2026”, presented exclusively by www.money-tourism.gr, records one of the largest changes ever seen in the global tourism ecosystem. For the first time, the Tours, Activities & Attractions sector, now known as the Experiences Sector, not only recovers after the pandemic, but is evolving into the fastest-growing segment of the global travel economy, surpassing for the first time in growth rate every other travel segment: air transportation, hotels, short-term rentals, and car rentals.
This is the most comprehensive global market mapping study for tours, activities, and attractions from the pre-pandemic period to the present, and according to the leading research firm Phocuswright, with a market size of $271 billion in 2025, and a projected increase to $342 billion by 2029, the industry is growing at a compound annual growth rate (CAGR) of 8%, one of the highest in the travel economy. This increase is not only due to demand, but also a profound change in travelers’ habits: experiences are now the main reason for choosing a destination, surpassing traditional criteria such as hotels, beaches, or airfare prices.
Meanwhile, the Arival-Phocuswright report reveals that online booking of experiences is growing faster than any other tourism product: from 17% in 2019, it will reach 33% in 2025 and is expected to reach 42% in 2029. OTA (Booking, Expedia, GetYourGuide, Klook) show the strongest growth, with a forecast of a fivefold increase in gross bookings within a decade.
Europe maintains 34% of the global market — with the Mediterranean, and particularly Greece, at the center of this transition. In a world where experiences now drive travel demand, Greece has the characteristics to take center stage: culture, nature, gastronomy, and modern lifestyle content.
The report
The report, which is based on extensive business data, global traveler research, third-party economic indicators, and a detailed supply-side model, provides the first authentic picture of the industry’s true scale since 2019. It is published during a period of renewed investment interest, as multiple large OTAs are preparing for IPOs, significant new capital is entering the ecosystem, and global platforms are aggressively expanding their experiences.
A transformed industry: Experiences now drive travel demand
The new research confirms a structural change in the way people plan and book travel. Experiences, once considered secondary, are now a primary factor in destination selection, driven by the global preference for “experiences over things” and the rapid rise of online bookings.
The main findings are as follows:
- Experiences will reach $271 billion in 2025, surpassing pre-pandemic levels and growing faster than the overall travel industry
- The industry is expected to exceed $340 billion by 2029, with a compound annual growth rate (CAGR) of 8% from 2023 to 2029 – compared to 5% for overall tourism.
- Online channels are growing rapidly, from 17% of bookings in 2019 to 42% in 2029.
- OTA is the fastest growing channel, with gross bookings expected to increase more than five times from 2019 to 2029.
- The industry remains significantly under-digitized, with only 33% of gross bookings being made online in 2025, compared to 64% of the global travel industry.
“For years, experiences were called the ‘last untapped opportunity’ in tourism, but this report marks a turning point,” said Douglas Quinby, CEO and co-founder of Arival. “The industry has not only recovered—it is now the fastest-growing segment of tourism, transforming the way people choose where to go and what to do. Travelers are prioritizing experiences like never before, and this shift is fueling a global market that is expanding at a remarkable rate.”
Pete Comeau, Managing Director of Phocuswright, emphasized the broader implications for the tourism ecosystem:
“Experiences have moved to the center of the travel decision-making process, and travelers are increasingly booking them online and in advance,” he said. “This is a profound behavioral change. The rapid digital acceleration of the industry, combined with emerging AI-based discovery and booking tools, signals a great opportunity for platforms, providers, and investors. The data show a category that is maturing quickly – and still has a huge room for growth.”
Investment momentum is strengthening as the wave of IPOs approaches
The report’s release coincides with a wave of investment activity. Klook and MyRealTrip are preparing for an initial public offering, while GetYourGuide has announced plans to go public. Meanwhile, major travel brands – including Airbnb, Booking.com, and Expedia – are expanding their experiences activities or acquiring specialized OTAs.
The report highlights both the dynamics and the challenges that lie ahead. The industry remains highly fragmented, with over 70% of providers being classified as small or very small businesses. The adoption of technology is uneven, and offline direct sales continue to dominate many local markets. However, as more providers adopt modern reservation systems and as Artificial Intelligence reshapes discovery and commerce, the potential market for online experiences is expected to expand dramatically.
The tables
The full Arival–Phocuswright Media Briefing presentation is analyzed below, table by table.
1.The total global impact of tourism
The first sections of the presentation record the macroeconomic environment in which travel experiences unfold. The global GDP related to tourism reaches $11.7 trillion, while the industry employs 371 million workers worldwide. Meanwhile, international travel spending amounts to $2.1 trillion, confirming that tourism remains one of the most dynamic economic pillars.
One of the most important paintings in the first section is “Global Snapshot”. By 2025, the global travel market will reach $1.93 trillion, a 6% increase from the previous year. It approaches $2.14 trillion in 2027, with a growth rate of 5%.
Internet penetration continues to expand: by 2027, it is expected to increase from 63% to 67%, showing that the digital transformation is steadily affecting the entire travel ecosystem.
2.Regional Gross Travel Bookings
The most important numerical table in the presentation records the gross travel bookings per region in 2025.
The data presents unique accuracy regarding the balance between online and offline bookings.
The actual data:
- U.S. & Canada: $550 billion (198 online / 352 offline)
- APAC: $45.6 billion (159 online / 297 offline)
- Europe: $399 billion (123 online / 276 offline)
- Middle East: $10.9 billion (54 online / 55 offline)
- LATAM: $79 billion (38 online / 41 offline)
- Eastern Europe: $7.5 billion (29 online / 46 offline)
This image shows that offline bookings continue to be a strong channel in all regions. Although online is rapidly increasing in some markets, the presentation confirms that the complete digitalization of travel is still a long way off, as consumers — and mainly industry professionals — adopt technological solutions at different rates.
3.Digital Acceleration — Actual OTA vs direct distribution
On the next slide, the tables show the ratio of OTA to direct bookings in each major geographic market. The picture is clear: OTA is growing, but the traditional direct channel remains dominant in many areas.
Example:
- Globally: 38% OTA / 62% direct
- In Europe: 29% OTA / 71% direct
- In APAC: 49% OTA / 51% direct
- In the US/Canada: 35% OTA / 65% direct
This pattern shows that Europe remains the continent with the strongest local distribution through suppliers, while Asia shows the most advanced online behavior. Meanwhile, emerging markets (LATAM, Eastern Europe) have high OTA penetration relative to their size, indicating that platforms are gaining ground where distribution infrastructure is less mature.
4. Travel behavior — Participation in activities
The next slide contains one of the most interesting charts in the presentation: the percentage of travelers participating in activities. 90% of travelers say they participate in some form of activity, up from 87% last year.
The breakdown by generation is revealing:
- Gen Z: 96%
- Millennials: 97%
- Gen X: 91%
- Boomers+: 75%
This finding confirms not only the importance of experiences in today’s travel, but also the rapid rise in demand from younger generations — which are moving almost to universal participation levels.
5. The importance of exclusivity — A premium behavior indicator
The following table shows the extent to which travelers are interested in exclusive experiences.
80% of “indulgent explorers” consider exclusivity to be important, compared to just 42% of other travelers. The difference is indicative: the premium, curated, and specially designed product creates new demand categories and encourages destinations to invest in diversification.
6. Size of the experience market
The market size for 2019–2029 is as follows:
- 2019: $253 billion
- 2021: 87 billion
- 2023: ~217 billion
- 2025: 271 billion
- 2027: 306 billion
- 2029: 342 billion
At the same time, the graph shows the trend of the online share:
- 2019: 17%
- 2021: 34%
- 2023: 29%
- 2025: 33%
- 2027: 38%
- 2029: 43%
Despite a slight “braking” in 2025, the overall trend remains upward, indicating that the online market is experiencing its strongest decade of expansion.
7. The real numbers of the online market 2019–2029
The following table shows the evolution of OTA + direct online sales.
Prices as shown in the chart:
The difference between OTA and direct is constantly widening, reflecting the shift of travelers to multi-choice platforms.
8. The structure of the industry — Fragmentation & Tech adoption
The presentation records two critical figures related to the structure of businesses:
- 75% of experience providers are small or very small businesses
- 1 in 3 do not have an electronic reservation system
In 2025, the percentage of operators with a reservation system will reach 70%, up from about 30% in 2015 — one of the most interesting figures, as it shows that digitalization is accelerating, but it requires time and investment.
9. Channel Share 2025 — The cleanest chart in the report
The actual channel distribution for 2025 was:
- Offline: 36%
- Operator Websites: 40%
- OTA: 24%
The coexistence of offline and under-digitized shows that the market experiences are far from digital saturation. Even in 2025, the majority of transactions remain outside of a fully online environment — a significant difference compared to hotels and airlines.
10. Travel preferences — Experiences as a destination selection guide
Finally, 2 out of 3 travelers say that experiences are the main reason for choosing a destination.
This shift explains why platforms and destinations are investing so aggressively in the experiential product.
11. Summary highlights of the report
The final section summarizes the most critical data:
- The market will reach $342 billion by 2029
- Growth rate ~6% CAGR
- OTA is the fastest growing channel
- OTA gross bookings will double between 2025–2029 and exceed $40 billion
These data confirm that the market experiences is on a clear, measurable expansion path, both in value and in digital dynamics.
Final conclusion
Based solely on the tables and graphs in the file, the picture is clear:
The travel experience industry is evolving into one of the most dynamic and transformative sectors of the global travel economy.
Development, digitalization, and significant inequalities in technology adoption create an environment full of opportunities and challenges.
The report
The Outlook for Travel Experiences 2019–2029 is a joint research initiative by Arival and Phocuswright. It provides a global market overview, regional forecasts, channel analysis, and category trends in the areas of tours, activities, and attractions. The report is based on Arival’s Global Operator Landscape (5,664 qualified responses), proprietary traveler research, third-party economic and travel data, and a detailed offer model for 22 experience categories.
Arival
Arival organizes conferences and conducts analyses for tours, activities & attractions and is the global research authority for in-destination experiences. Arival’s research offers exclusive, primary quantitative and qualitative analysis, helping industry professionals understand key trends, identify new opportunities, define strategies, monitor competitors, and understand their customers.
Phocuswright
Phocuswright is the leading global authority in the field of tourism research, events, and media, providing accurate insights for strategic decisions. Phocuswright deciphers market trends, monitors consumer behavior, and highlights industry innovation, providing tourism executives with the data they need to stay ahead.Through innovative research, dynamic events, and strategic partnerships, Phocuswright is the meeting point, learning, and leadership of the industry.
