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Phocuswright Research Roundup 2Q25
Q2 saw the release of refreshed and revamped Phocuswright's flagship reports on U.S. and European consumer behavior and major travel markets. This collection of focused analyses offers a smarter and more streamlined approach to our vast data and essential insights. Discover some of the high-impact findings in our 2Q25 Research Roundup.
From scroll to suitcase: What inspires Europe’s new travelers
Search engines and OTA sites maintain their lead positions as main research resources for trip planning. The reviews found on general search engines are leveraged the most. Interestingly, AI results in search are at parity with paid search results, likely due to their placement at the top of the page. Phocuswright’s latest research compares European consumers' trip-planning and purchasing behavior, including the impact of emerging technologies on the travel planning process, as well as their...
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Cross-border payments in travel: Risks, rewards and the road ahead
Cross-border payments are having a proverbial moment. An exclusive report, produced by PhocusWire in association with Worldline, details the potential, costs, benefits and solutions available to travel retailers.
U.S. car rental: Cooling off or resetting the ride?
After peaking in 2023, the U.S. car rental market faced a mild correction in 2024 as fleet availability normalized and consumer price sensitivity increased. Rental companies responded by prioritizing margin over volume, adjusting fleet strategies, and pulling back from aggressive electric vehicle investments. Looking ahead, policy shifts, international sentiment and economic uncertainty are likely to weigh on demand, though direct digital bookings and operational recalibration offer some near-term...
European traveler mindset in 2025: Simplicity, search and social influence
Travel in the U.K., France and Germany continues to rise. Booking decisions are often influenced by factors revolving around value and price. Social media use has increased when planning and searching for trip ideas. Looking forward, most Europeans have a positive outlook for future travel plans, though these may be hindered by prolonged rising costs and some sustainability concerns. Here are 8 key takeaways from our newest consumer research.
Generational spending patterns reveal strategic insights for travel brands
In-destination travel spending is far from uniform—and the latest findings from Phocuswright research reveal clear generational distinctions that matter for marketers and strategists alike.
U.K. travel market sees mobile acceleration and a shifting infrastructure landscape
The U.K. travel market advanced 7% in 2024 to reach £53.5 billion. With online penetration climbing to 88%—the highest in Europe—and mobile booking poised to overtake desktop, the market is rapidly transitioning to a digital-first landscape. Several segments saw notable double-digit growth, supported by public investment and evolving traveler behavior. While growth is expected to moderate, the outlook remains strong through 2028, underpinned by robust outbound demand and a national focus on...
What’s driving Canadian travel agency growth in 2025?
Most advisors in Canada remain optimistic about the future. Key challenges include increasing travel expenses and high airfares, which are prompting agencies to explore new revenue strategies, adjust their business models and expand their teams.
Travel startup funding falters in Q1 2025
Travel startup funding slowed to its lowest Q1 in recent years, with a 40% drop from last year. Which verticals still got funded? What types of deals were made?
Phocuswright's Travel Innovation and Technology Trends 2025
The most significant innovation trends in travel technology and distribution for 2025 and beyond.
Fragmentation, regulation, acceleration: The new STR playbook
The global short-term rental (STR) market reached $201.6 billion in gross bookings in 2024, following a period of extraordinary pandemic-era expansion according to Phocuswright’s latest research report Global Short-Term Rentals 2025. While growth is expected to moderate to single digits in 2025, the sector remains a structurally significant force in global lodging—particularly in digitally connected and leisure-driven segments.
Short-term rentals 2025: Navigating the next phase of growth
In this free webinar Madeline List, Phocuswright’s manager of research and special projects, shares highlights from our recent report U.S. Short-Term Rentals 2025—a three-part series combining insights from hosts, property managers and travelers. We’ll explore how the STR market is responding to post-pandemic saturation, where opportunities lie in technology and service innovation and how guest preferences are shaping the path forward.
Spain 2025: Where record-breaking demand meets new competition
Once again, all records have been broken in the Spanish tourism sector in 2024, making it the second-most-visited country in the world, behind France and ahead of the U.S., China and Italy. The number of international travelers grew by 10.1% in 2024, reaching 93.8 million. And even more notably, spending increased by 16%, totaling €126 billion (13% of GDP).
Experts debate GenAI’s impact on the in-destination experience
Recent capabilities of generative AI models have significant implications for the in-destination experience, and specifically advanced computer vision capabilities that allow travelers to understand surroundings and context, along with advanced real-time voice capabilities that enable very natural conversations. Together these stand to revolutionize how travelers, tour neighborhoods, and sites of interest, get recommendations and interact with locals. For the many travelers embracing AI tools, how...
Short-Term Rentals: A category at a crossroads
Once the rising star of post-pandemic travel, short-term rentals now face a new challenge: perception. As guest expectations shift and younger travelers grow wary, STRs must confront a reputation problem that could stall future growth. Our latest preview unpacks what today’s travelers really think—and why the next wave of bookings may depend more on trust than tech.
5 key takeaways on how GenAI is impacting company operations
Valuable perspective as to why GenAI and autonomous agents are poised this year to begin revolutionizing how travel companies operate.
The path to growing alternative revenue for STRs
Needs for additional tools and money-making opportunities notwithstanding, operators are working to overcome their challenges one hurdle at a time. More time and money may be required to build out operational best practices. In the meantime, market forces may weed out the operators who fail to establish the right mix of insourcing and outsourcing services in a way that maximizes earnings and provides guests and homeowner clients with the best experience.
OTAs take the lead in superapp innovation as India’s travel market reaches new heights
To maintain their competitive edge against supplier-led direct distribution and rivals, Indian OTAs are diligently implementing strategic initiatives. These include offering personalized travel experiences; integrating AI-driven technologies; launching loyalty programs; expanding partnerships with local and international service providers; and targeting customers in tier-2 and tier-3 cities to broaden their reach. Furthermore, an intriguing trend is unfolding in the market: Many OTAs are striving...
Short-term rentals segment: Living on an arc of its own
The U.S. short-term rental market has undergone a dramatic transformation, shifting from a pandemic-driven boom to an increasingly competitive and complex landscape. With supply growth outpacing demand and consumer preferences evolving, hosts and property managers must navigate rising costs, regulatory uncertainty, and heightened competition from hotels and international rentals. Profit-oriented hosts are proving more resilient, while those with passive management styles face mounting challenges....
Travel Again Podcast - Spotlight Edition with Phocuswright's Mike Coletta
Phocuswright and Travel Again Advisory are partners in delivering strategic insights and expert consulting to travel’s smartest executives. In this episode, the two feature a dive deep into the latest impacts of GenAI on the travel industry, including how it will converge with digital identity.
U.S. travel agency market: A resilient and thriving segment
While the pace of growth is expected to moderate, U.S. travel agency sales are projected to rise another 9% in both 2024 and 2025, with leisure agencies leading the way and corporate travel agencies regaining ground. And despite concerns over rising travel costs and airfares, 72% of travel advisors have a positive outlook on the future. With a growing market share, a resurgence in corporate travel, and a strong foothold in high-value segments, the U.S. travel agency market is well-positioned for...
5 key projections of APAC travel’s future
Here are 5 critical APAC travel market projections you need to know.
Northeast Asia will smash through another barrier by 2026
Northeast Asia's booking pathway is online. New demand, demographic and strategic dynamics will further reshape travel across the decade as the slump-to-recovery period will transform into stepped growth of overall gross bookings through 2027. The mindset shift towards e-commerce and app-enabled travel and lifestyle services is irreversible and is being reinforced by new smart-tech and AI travel booking tools, leading to projections of $30 billion in online gross bookings by 2026.
70% of U.S. travelers stayed in hotel, 24% in STR
When it comes to lodging trends in the U.S., there’s a clear winner: hotels. Travelers stay at hotels more than any other lodging type while on vacation. They're most popular among 35 years old or older, with Mid- and upscale being preferred by most. However, short-term rentals (STRs) are particularly popular among younger travelers, with many seeing the benefits of space, privacy and flexibility that STRs have to offer.
5 ways autonomous AI agents will redefine travel
Many people will continue booking travel in the ways they’re used to – on websites and apps or calling – for a long time. But especially for simpler trips, if they’re using GenAI to plan their trip and can get live prices and booking capabilities right inside that environment, a significant number of people will be interested in doing so. This is why our main trend for 2025 is the significant shift of travel intent into generative chat and search environments, with the anticipation that a...
30 data-driven insights to make your organization smarter
Is your team searching for data-driven insights to identify emerging trends and seize new opportunities faster? Get straight to the data projections, consumer profiles and reporting of GenAI that are filling reports and analyses.
The future of the TMC
In today’s competitive market for business travel services, the traditional travel management company (TMC) model (referring to travel agencies that focus on the managed corporate travel segment) is being challenged.
A look at how U.S. travelers plan and book lodging
Travelers booking lodging reached a new high in the 12 months ending July 2024, up slightly from the previous year. Direct and indirect methods are at parity with each other when booking, but OTAs are leveraged by more travelers (39%), particularly those under 55. Travelers over 55 still have a strong preference for booking on supplier sites.
Southeast Asia prides itself on quick adoption of nascent technologies
In Southeast Asia, widespread use of mobile apps and, increasingly Generative AI tools, influences the ways young people access and consume travel content, and the speed with which they make booking decisions. Travel suppliers and intermediaries know on-demand bookers expect high-quality service, including fast, touchless transactions using the same e-payment formats they use daily online and offline. The steep upward trajectory of online penetration, which is set to rise from 62% in 2023 to 74%...
5 key findings on how American travelers shop and book air
Nearly two thirds (65%) of travelers took a flight in the past 12 months, down only slightly from the prior year (68%). Phocuswright’s recently published report U.S Consumer Travel 2024: Air provides a range of data and analysis on the American consumer’s air travel behaviors and preferences, and what these trends look like over time.
$1.2T in online bookings by end of 2026
It’s gearing up to be a slow climb to new heights in 2025.
4 ways GenAI will impact travel startups
Because GenAI has the potential to be so disruptive in the coming years, planning is becoming increasingly difficult. This creates an abundance of both uncertainty and, in tandem, opportunity.
10 insights that should be on your radar in 2025
Phocuswright just published Travel Forward: Data, Insights and Trends for 2025, a resource (available to everyone) which provides broadscale insights into the $1.61 trillion global travel market, offering essential data for understanding industry trends and growth. Featuring highlights by segment, channel, consumer behavior metrics and more, this report equips industry stakeholders with the key data and trends needed to navigate the evolving travel landscape. Looking ahead, here are 10 key...
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Travel Forward: Data, Insights and Trends for 2025
Phocuswright's Travel Forward: Data, Insights and Trends for 2025 provides broadscale insights into the $1.61 trillion global travel market, offering essential data for understanding industry trends and growth.
A new era for travel startup investing
Travel startups have weathered a drastic funding downturn over the past 2+ years, but recovery is on the horizon. All signs point to a rebooting of the venture capital cycle. Yet the future may look nothing like the past.
5 ways travelers are using GenAI
With rapid advances in generative AI, virtual reality and a range of other high-tech tools, travelers can increasingly leverage these technologies in their trip planning and incorporate them into their actual travel experiences. As these tools move into the mainstream, it is critical to understand which travelers are embracing these technologies, and how consumers’ attitudes and behavior regarding technology continue to evolve.
Use of tech in trip-planning is not one-size-fits-all
Travelers’ embrace of technology continues to evolve. Digital interactions, preferences for apps and what consumers are looking for differ for each part of the travel journey. And most travelers vary their approach to planning each trip online. But as technologies develop, are you understanding your customers’’ attitudes and perceptions about the tools they are using?
Is the future of travel regulation digital and green?
Navigating a patchwork of regulations across borders is a major challenge for travel businesses. Balancing economic growth with environmental and social responsibility further complicates the picture. However, growing awareness of the importance of sustainability and consumer protections is driving a shift toward more robust and level regulation.
When travelers want digital vs. human interaction
While digital interactions are preferred by more for directions, checking in, and making changes to bookings/reservations, travelers prefer their fellow humans for tours, customer support and ordering in restaurants. Travel companies should note the strong continued interest in human customer service, despite the rise in use of artificial intelligence chatbots.
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Are travelers early adopters?
The use of technology in the trip-planning path is notone-size-fits-all; for most, there is variation with each trip.
Phocuswright Research Roundup 3Q24
It was another packed quarter for Phocuswright analysts, with 20+ publications spanning technology trends, global travel market sizing, social creator and influencer analysis and more.
Creators and conversion
The rate of influencer collaborations affecting converters is a prime indicator that creator partnerships can be extremely effective, but brands must still walk a fine line with their choices of when to partner and with whom. Among followers of creators, almost half (49%) say they'll trust an account less if they have a lot of brand collaborations or ads. Even the most successful influencers can harm their personal brand if they overload their content with partnerships and ads. Brands must...
The cost of payments in the travel industry
Forty percent of North American respondents and 32% of European respondents pay between 3-3.9% in credit card fees per transaction. Globally, 4-5 in 10 respondents strongly agreed that card processing fees are too high.