Rapid transition to online bookings in the coming years

The global travel market is forecasted to grow 6-10% annually through 2026, with online bookings expected to reach 65% of all travel by 2026

The Phocuswright's Global Travel Market Report 2024 highlights the increasing importance of online travel, which is expected to grow by nearly 10% annually between 2023 and 2026. This shift to digital channels is being driven by changing consumer preferences, advances in technology, and improved digital infrastructure. By 2026, online bookings are expected to account for 65% of all global travel bookings, up from 61% in 2023.

Key takeaways

• Global travel market up 24%: The industry has not only rebounded, but surpassed 2019's gross bookings of $1.5 trillion;
• Online Bookings on the Rise: Online travel is leading the way, with a projected compound annual growth rate (CAGR) of 9.8% from 2023 to 2026;
• North America Leads the Market: The region has emerged as the world's largest travel market;
• APAC and Europe excel in online penetration: Europe will overtake North America in 2023, and APAC is expected to do the same by 2024;
• Suppliers vs. OTAs: While suppliers dominate overall online bookings, online travel agencies (OTAs) hold a significant lead in the hotel segment;
• Top Market Shifts: The US, China, Japan, Germany and France are currently the leading travel markets. However, the UK is expected to enter the top five by 2025.

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