The global market for travel experiences is expected to reach $342 billion annually by 2029, surpassing every other segment of the travel industry in growth, according to new research from Arival and Phocuswright. The report, which analyzes trends from 2019 through 2029, highlights a fundamental shift in how consumers plan trips and where they allocate their travel budgets.
Rather than treating tours and attractions as secondary add-ons, travelers are increasingly making experiences the centerpiece of their itineraries. The data suggests the sector has moved beyond recovery and into a phase of structural transformation.
“This year’s data tells a maturity story, one defined by change, digital saturation and entirely new demand patterns,” said Pete Comeau, the managing director of Phocuswright.
Participation rates reflect the scale of that change. The report finds that 90% of travelers engage in activities during their vacations, with Gen Z participation reaching 96%. More notably, booking behavior has evolved. Two-thirds of travelers now say they choose destinations based on the types of experiences available there, signaling that tours and attractions are influencing travel decisions earlier in the planning process.
Digital Channels Still Underpenetrated
Despite strong demand, the experiences segment still lags other travel categories in digital adoption. Only 33% of bookings are currently made online, leaving the majority of transactions occurring offline. However, this imbalance represents significant upside potential.
Researchers project that online sales will account for 43% of the market by 2029. Online travel agencies are expected to expand aggressively, with bookings forecast to grow more than fivefold, from under $8 billion in 2019 to over $40 billion by 2029. Marketplaces such as Airbnb, Viator and Get Your Guide are helping accelerate that transition by making tours and activities more discoverable and easier to compare.
Experiences Redefining Travel Priorities
The report defines travel “experiences” broadly, encompassing day tours, local activities and attraction tickets. Growth is being fueled by a broader consumer trend that favors spending on experiences over material goods, combined with improved digital booking tools.
“For years, experiences were called travel’s last untapped opportunity, but this report marks a turning point,” Arival CEO and cofounder Douglas Quinby said. “The sector has not only recovered; it is now the fastest-growing segment of travel, reshaping how people choose where to go and why.”
As travelers increasingly build itineraries around curated activities rather than simply flights and hotels, the competitive landscape is shifting. Companies that invest in digital distribution, seamless booking technology and targeted content are likely to capture an outsized share of future growth.
With demand broadening across demographics and digital platforms expanding their reach, the experiences sector is positioned not merely as a complementary revenue stream, but as a central driver of global travel in the decade ahead.
