The travel experiences sector – often described as travel’s “last untapped opportunity” – has emerged as the industry’s fastest-growing segment, outpacing travel overall and continuing to expand beyond pre-pandemic levels.
New research from Arival and Phocuswright shows the global tours, activities and attractions sector reached US$271 billion in 2025, and is further projected to climb to US$342 billion by 2029.
This translates to an eight per cent nominal CAGR from 2023–2029, compared with five per cent for travel overall, according to The Outlook for Travel Experiences 2019–2029.
“Travellers are prioritising experiences like never before, and that shift is powering a global market that’s expanding at remarkable speed,” said Douglas Quinby, CEO and co-founder of Arival.
Fast-growing but under-digitised
Despite this growth momentum, only 33% of gross experience bookings were made through online channels in 2025, compared to 64% for the global travel industry.
For travel agents, this gap presents an opportunity. The market is highly fragmented, with more than 70% of operators classified as small or micro businesses. Tech adoption remains uneven, and offline, direct sales continue to dominate in many destinations.
Yet as more operators adopt modern booking systems and as AI reshapes discovery and commerce, the addressable market for online experiences is poised to expand dramatically.
Online channels scale rapidly
“Experiences have moved to the centre of the travel decision-making process, and travellers are increasingly booking them online and in advance,” says Pete Comeau, managing director of Phocuswright.
“The sector’s rapid digital acceleration, combined with emerging AI-driven discovery and booking tools, signals a major opportunity for platforms, operators and investors.”
According to the report, online channels are scaling rapidly, rising from 17% of bookings in 2019 to a projected 42% by 2029.
OTAs are the fastest-growing distribution channel, with gross bookings expected to increase more than fivefold over the same period.
Major global platforms including Airbnb, Booking.com and Expedia are expanding aggressively into experiences divisions, while travel specialist players such as Klook, MyRealTrip and GetYourGuide are preparing or signalling IPO activity.
As more operators adopt modern booking systems and as online penetration rises, Comeau notes that the experiences market is one “that is maturing quickly – and still has enormous room to grow”.
The Outlook for Travel Experiences 2019–2029 drew on 5,664 qualified operator responses, proprietary traveller research, third‑party economic and travel data and a detailed supply‑side model across 22 experience categories.