Arival and Phocuswright Release Landmark Global Market-Sizing Report Showing Travel Experiences Surging Toward $342B by 2029

New data reveals experiences are outpacing the rest of travel, reshaping traveler behavior and attracting heightened investor interest

 

NEW YORK, NY, Feb. 25, 2026 – Arival and Phocuswright today released The Outlook for Travel Experiences 2019–2029, the most comprehensive global market-sizing report for tours, activities and attractions since before the pandemic.  The new research shows the experiences sector has not only fully rebounded but its growth rate is now outpacing every other major segment of travel, reaching $271 billion in 2025 and projected to climb to $342 billion by 2029.

 

The report – built from extensive operator data, global traveler research, third‑party economic indicators and a detailed supply‑side model – provides the first authoritative view of the sector’s true scale since 2019.  It arrives at a moment of renewed investor interest, with multiple major OTAs preparing for IPOs, significant new funding entering the ecosystem, and global platforms expanding aggressively into experiences.

 

A sector transformed: experiences now drive travel demand

 

The research confirms a structural shift in how people plan and book travel. Experiences – once an afterthought – are now a primary driver of destination choice, fueled by the global preference for “experiences over things” and the rapid rise of online booking.

 

Key findings include:

• Experiences reached $271bn in 2025, surpassing pre-pandemic levels and growing faster than the broader travel industry
• The sector is projected to exceed $340bn by 2029, with an 8% nominal CAGR 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
• OTAs 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

 

“For years, experiences were called travel’s ‘last untapped opportunity’, but this report marks a turning point,” said Douglas Quinby, CEO and co-founder of Arival.  “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, emphasized the broader implications for the travel 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 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.”

 

Investor momentum builds as IPO wave approaches

 

The release of the report coincides with a surge of investor activity.  Klook and MyRealTrip are preparing for public offerings, and GetYourGuide has signaled plans for a share sale.  Meanwhile, major travel brands – including Airbnb, Booking.com and Expedia – are expanding their experiences divisions or acquiring specialist OTAs.

 

The report highlights both the momentum and the challenges ahead.  The sector remains highly fragmented, with more than 70% of operators classified as small or micro businesses.  Tech adoption is uneven, and offline direct sales still dominate many local markets.  Yet as more operators adopt modern booking systems and as AI reshapes discovery and commerce, the addressable market for online experiences is poised to expand dramatically.

  

About the report

The Outlook for Travel Experiences 2019–2029 is a joint research initiative from Arival and Phocuswright.  It provides global market sizing, regional forecasts, channel analysis and category trends across tours, activities and attractions. The report draws on Arival’s Global Operator Landscape (5,664 qualified operator responses), proprietary traveler research, third‑party economic and travel data and a detailed supply‑side model across 22 experience categories.  The full report is available from Arival and Phocuswright from Feb. 18, 2026.

 

About Arival

Arival produces conferences, insights and community for tours, activities and attractions and is the global research authority for in-destination experiences. Arival research offers exclusive, primary quantitative and qualitative research to help tour, activity, and attraction industry professionals understand key market trends, identify new opportunities, set their strategies, track their competitors and understand their customers. Learn more at Arival.Travel.

 

About Phocuswright

Phocuswright is the travel industry’s definitive authority on research, events, and media, powering smart decisions with unmatched insights. Phocuswright decodes market trends, tracks consumer behavior, and spotlights industry innovation, giving travel leaders the data and intelligence they need to stay ahead. From cutting-edge research to high-impact events and strategic partnerships, Phocuswright is where the industry connects, learns, and leads.