Travel industry bookings have officially recovered from the COVID-19 pandemic.
The industry surpassed pre-pandemic levels in 2023 with a 24% increase in gross bookings and total spending of $1.5 trillion, according to data recently released by Phocuswright.
The news is part of Phocuswright's 2024 Global Travel Market Report. The report also reveals that “the growing dominance of online travel” is driving the recovery of the travel industry.
Online reservations are expected to increase by almost 10% between 2023 and 2026.
“This digital shift is driven by changing consumer behavior, improving digital infrastructure and technological advancements,” the report said.
In fact, by 2026, online bookings are expected to account for 65% of all travel bookings worldwide. This is up from 61% in 2023.
“Our latest research reveals a travel industry not only rebounding, but evolving,” Eugene Ko, Phocuswright’s director of marketing and communications, said in a statement. “The accelerated shift to online bookings and the varying pace of digital adoption across regions highlight both the opportunities and challenges ahead. »
Ko added that it will be crucial for industry players to understand the nuanced changes currently occurring in order to remain competitive in a rapidly evolving landscape.
Here are some of the key additional findings from the report:
- North America, meanwhile, has officially become the world's largest regional travel market, according to new data.
- Europe and APAC, however, are leading the way in online penetration. It appears that Europe will overtake North America in 2023 and the APAC region is expected to follow suit in 2024.
- Suppliers vs. OTAs: Suppliers dominate online bookings overall, but OTAs lead in the hotel segment
- Shift in top markets: The US, China, Japan, Germany and France currently hold the top spots, but the UK is poised to enter the top five by 2025.
Phocuswright news follows equally positive projections from the World Travel and Tourism Council (WTTC). In April, WTTC released data predicting that 2024 will be a record year for the global travel industry, with a record level of economic contribution and employment globally.
The industry is expected to generate one in ten dollars globally, contributing $11.1 trillion to the global economy, according to WTTC's 2024 Economic Impact Study. This is $770 billion more than its previous record.
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