The experiential travel segment, which includes everything from tours to museum visits, is expected to outpace every other major travel segment through 2029, according to data from Arival and Phocuswright.
The two travel data experts joined forces to release the comprehensive “Outlook for Travel Experiences 2019-2029” report, which analyses the segment from pre-pandemic onward to future expectations.
According to the report, the experiences sector generated US$271bil (RM1.06 trillion) in 2025, and is expected to grow at a compound annual growth rate of 8% from 2023 through 2029, to generate US$342bil (RM1.34 trillion).
The research shows that two in three travellers say experiences – ranging from visiting museums or cultural sites to engaging in wellness activities – play a major role in choosing which destination to visit. In fact, it’s the third-largest segment of travel, behind flights and accommodations.
The report, which analysed over one million online experience listings, surveyed over 5,000 operators, issued a survey of 2,000 travellers from the United States and Europe, and included secondary research, found that while the majority of travel – including flights and accommodations – is booked online, the experiences segment is uniquely less online.
“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. “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.
“Travellers are prioritising experiences like never before, and that shift is powering a global market that’s expanding at remarkable speed.”
Just 33% of gross bookings for experiences took place online last year. Compared to the broader travel industry bookings at 64%, that’s a markedly lower number.
While digitisation is happening, and fast, especially among growing OTAs (online is expected to grow to 42% by 2029), the difference is due to the size of these experience businesses – and likely, their uniquely in-person nature.
Three in four of these businesses are small or micro businesses, locals who capitalise on showing tourists their favourite parts of a destination. These could be local tour operators, hiking guide companies or other small businesses. One in three of these operators are also not using an online booking system.
Yet as this segment grows financially, investors will want in. Klook and MyRealTrip are preparing for public offerings, GetYourGuide is planning for a share sale and major travel brands like Airbnb and Expedia are adding new experiences offerings or acquiring OTAs for experiences. – TravelPulse/Tribune News Service
