Phocuswright and Arival have released The Outlook for Travel Experiences 2019-2029, a comprehensive global market-sizing report on tours, activities, events and attractions.
The report, drawing on operator data, global traveler research and third-party economic indicators, shows the experience sector is now growing faster than any other major segment of travel, with $271 billion reached in 2025 and projected to climb to $342 billion by 2029.
According to the research, travelers are prioritizing “experiences over things,” with younger travelers putting experiences first in their travel planning process. In fact, the travel experiences category is now the third-largest travel market segment, after flights and accommodations.
Higher spending travelers, defined as those spending $1,500 or more per person per day, are leaning into exclusive experiences at nearly double the rate of other travelers, signaling a shift toward access-driven differentiated offerings.
The sector has not only recovered, it is now the fastest-growing segment of travel.
"For years, experiences were called travel's 'last untapped opportunity,’ but this report marks a turning point," said Douglas Quinby, CEO and co-founder of Arival, a travel and tourism research platform that focuses on experiences. "The sector has not only recovered, it is now the fastest-growing segment of travel, reshaping how people choose where to go and what to do. Travelers are prioritizing experiences like never before, and that shift is powering a global market that's expanding at remarkable speed."
Online channels are expanding quickly within the experiences sector, growing from 17% of bookings in 2019 to a projected 42% by 2029. OTAs are leading that growth, with gross bookings surpassing $20 billion in 2025 and expected to exceed $40 billion by 2029.
The research also reflects a surge of investor activity. Airbnb, Booking.com and Expedia are expanding their experiences divisions and acquiring specialist OTAs. Klook and MyRealTrip are preparing for public offerings, while GetYourGuide has plans for a share sale.
