Travellers are increasingly building holidays around what they do at a destination rather than simply where they stay, with the global travel experiences market forecast to reach US$342 billion by 2029.
According to Arival and Phocuswright's Travel Experiences 2026: Market Sizing, Operator and Consumer Behavior Highlights report, the sector returned to its pre-pandemic value of US$253 billion in 2024 before growing to a projected US$271 billion in 2025. That represents 17% annual growth, well ahead of the wider travel industry's 6%. The study surveyed 2,550 travellers across the US and Europe to examine how they choose, book and pay for travel experiences.
Experiences are still largely booked offline: Only 33% of experiences were booked online in 2025, compared with 64% of bookings across the wider travel market. More than 70% of experience operators are small or micro businesses, contributing to the sector's slower digital adoption.
Walk-up bookings remain popular: Fewer than half of US and European travellers booked their most recent experience online. Nearly one in five travellers under 55, and almost one in four aged 55 and above, bought tickets by walking up to a provider or ticket office.
Travellers are booking earlier: Between 27% and 34% booked in advance because they were worried experiences would sell out, while many others simply wanted to lock in their itinerary before travelling. Same-day bookings now account for only 12% to 30% of experience purchases.
Holidays are packed with activities: US travellers averaged 4.3 tours, 4.6 activities and 4.1 attractions per trip, while European travellers averaged 3.5 tours, 4.7 activities and 4.0 attractions.
Culture and food top the list: Europeans were most likely to visit cultural sites and landmarks (47%), followed by sightseeing tours (43%) and museums (38%). Americans favoured sightseeing tours (42%) and culinary tours or cooking classes (40%), while Europeans were also more likely to book spa and wellness experiences.
Travellers aren't spending more: Despite taking part in more experiences, spending has remained relatively stable, suggesting many travellers are choosing to squeeze more activities into their holiday budget rather than splurge on fewer premium experiences.