Arival and Phocuswright Release Groundbreaking Report on Global Market Size | News
Arival and Phocuswright today released The Outlook for Travel Experiences 2019–2029, the most comprehensive report on the global market size for tours, activities and attractions since before the pandemic. The new research shows that not only has the experiences sector fully recovered, but its growth rate now exceeds every other major segment of the travel industry, reaching $271 billion by 2025 and expected to rise 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 industry’s true size since 2019. It comes at a time of renewed investor interest, with several major OTAs preparing for IPOs, significant new funding entering the ecosystem and global platforms aggressively expanding into experiences.
An industry that has been transformed: experiences now drive demand for travel
The research confirms a structural shift in the way people plan and book travel. Experiences – once an afterthought – are now one of the most important factors in choosing a destination, fueled by the global preference for ‘experiences over things’ and the rapid rise of online booking.
Key findings include:
Experiences will reach $271 billion by 2025, surpassing pre-pandemic levels and growing faster than the broader travel industry
The industry is expected to exceed $340 billion by 2029, with a nominal CAGR of 8% between 2023 and 2029 – compared to 5% for the travel sector overall
Online channels are growing rapidly, rising from 17% of bookings in 2019 to an expected 42% in 2029
OTAs are the fastest growing channel, with gross bookings expected to increase more than fivefold between 2019 and 2029
The sector is still significantly under-digitalized with only 33% of gross bookings made via online channels in 2025, compared to 64% for the global travel industry
“For years, experiences have been called travel’s ‘last untapped opportunity’, 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 travel segment and is changing the way people choose where they go and what they do. Travelers are prioritizing experiences like never before, and that shift is powering a global market that is expanding at remarkable speed.”
Pete Comeau, managing director of Phocuswright, highlighted the wider implications for the travel ecosystem: “Experiences have become central to the travel decision-making process, and travelers are increasingly booking them online and in advance,” he said. “This is a profound behavioral shift. The industry’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 rapidly maturing – and still has enormous room to grow.”
Investor momentum is increasing as the IPO wave approaches
The release of the report coincides with a flurry of investor activity. Klook and MyRealTrip are preparing for a public offering, and GetYourGuide has announced plans for a stock sale. Meanwhile, major travel brands – including Airbnb, Booking.com and Expedia – are expanding their experience 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 entrepreneurs classified as small or micro businesses. Technology adoption is uneven and offline direct selling still dominates many local markets. But as more operators adopt modern booking systems and AI reshapes discovery and commerce, the addressable market for online experiences is poised to expand dramatically.
