By 2026, Online Reservations Will Account for 65% of Travel Bookings
According to new research from Phocuswright, the global travel market has rebounded significantly, surpassing pre-pandemic levels with a 24% increase in gross bookings in 2023, reaching a total spend of $1.5 trillion. The industry is projected to grow between 6-10% annually through 2026. (Note: Phocuswright and TravelAge West are both owned by Northstar Travel Group.)
The Phocuswright Global Travel Market Report 2024 highlights the increasing dominance of online travel, which is expected to grow at a compound annual growth rate (CAGR) of 9.8% between 2023 and 2026.
By 2026, online bookings are forecasted to account for 65% of all travel bookings globally, up from 61% in 2023.
North America has emerged as the world's largest regional travel market. However, Europe and the Asia-Pacific region (APAC) are leading in online penetration, with Europe surpassing North America in 2023, and APAC expected to do the same in 2024.
While suppliers maintain a slight overall lead in online bookings, Online Travel Agencies (OTAs) dominate the hotel segment. The current top five travel markets — the United States, China, Japan, Germany, and France — may see a change, with the United Kingdom projected to enter the top five by 2025.
