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The state of startup funding
August 2022After crashing by 45% to just $4.5 billion in 2020, annual funding to travel startups recovered impressively in 2021, clocking in at $12.5 billion, far exceeding the previous high of $8.3 billion in 2019, according to Phocuswright’s latest travel research report The State of Travel Startups 2022. Sustaining a trend Phocuswright has highlighted for years, funding continues to move later stage with...
Optimism in Chinese hotel gross bookings forecast
August 2022Hotel groups are accelerating an already in-motion shift into emerging regions. Chinese and international hotel chains are signing more hotels, and investing in marketing for existing properties, in lower-tier cities to tap burgeoning affluence and travel confidence. With gross bookings to reach $47.6 billion by 2025, there’s optimism from the hotel and lodging sector in China.
Help Wanted: How travel survives the people shortage
August 2022The employment problem must be solved soon. No one likes the alternatives - a smaller industry, higher prices and less service. Ultimately, suppliers need to discern when the human touch can be replaced with technological alternatives, and how to better anticipate surges in demand. Simultaneously, it is imperative that they maintain a flexible workforce (with both staff and contractors). With talent...
With incredible variability, the LATAM travel market continues recovery
July 27, 2022The region has been on the upswing and the future appears promising.
4 questions around the fintech and payment revolution in travel
July 2022Renewed drive for increased efficiency and a simplified, secure user experience as demands for the travel industry warrants a focus on fintech. Broadly defined as software applications that involve financial services such as payments, loans, settlement and insurance, employment of big data fintech solutions can solve problems in ways previously impossible. The potential for growth within the...
Key developments in China’s online travel market
July 2022Travel distribution will mirror the high-octane digital transition of China's consumer economy. By 2025, online penetration is forecast to reach 73%. Once a travel recovery gathers momentum, suppliers and OTAs will generate the majority of their revenue from online channels, primarily from mobile customers. Travel agencies and group tour operators were the bastions of offline transactions, but the...
Phocuswright Europe Post-Show Report
July 12, 2022Travel companies brave staffing shortages amid burning demand.
Road to 2030
July 6, 2022A case study for the future of travel: How the future of network and computing platforms will integrate into every step of the travel ecosystem.
5 things to know about the European short-term rental traveler in 1 minute
June 2022Here's where European STR travelers are staying, what preferences they have, who they are and more.
5 key developments in the U.S. hotel market
June 2022U.S hotel gross bookings gained 65% year over year in 2021, as the segment mounted a recovery while still contending with a persistent virus and related challenges. Room occupancy vacillated between 60% and 80%, corresponding with seasonal travel peaks and virus-induced troughs. By 2023, hotel revenue is expected to recover to pre-pandemic levels, being one of the first travel segments in the U.S....
Time for a rethink in digital advertising
June 2022In 2019, the travel industry spent $6 billion on digital advertising. Though the last two years saw the pandemic reduce this spend nearly in half, digital travel advertising is projected to reach $4.54 billion in 2022, still a sizeable expenditure. The digital advertising space is amid a radical restructuring, with some changes happening now, significant disruption coming soon, and the promise of a...
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Research Round-Up
May 25, 2022A highlight of research insights from the first half of 2022.
3 key challenges for airlines
May 2022Amidst the uncertainties of the past two years, some airlines have taken the opportunity to rethink their strategies. The pandemic has not only posed severe revenue challenges for airlines, but also thrown many of their former predictive models out the window. Innovation is the name of the game. A new system, leveraging greater reliance on NDC, allows for more personalized sales.This adjoins with...
Hotels: on the path to attribute-based prosperity or calamity?
May 2022Hotels have long struggled to capitalize on room rates. The old selling model, which relies on simplistic sorting factors, leaves lots of potential revenue on the table by not customizing options for each unique guest. Enter: the attribute-based selling model (ABS). A new take on inventory and product bundling, ABS has the potential to improve search and data organization and optimize premium...
Short-term rentals: the difference between U.S. and Europe
May 2022Travelers in the U.S. and Europe have embraced rentals as a lodging option that affords safety as well as privacy, with many opting for smaller cities and non-urban destinations. Demand is through the roof and a niche no more. But what are the distinguishing features between these sets of consumers? Here’s what travel companies need to know about U.S. and European consumers when it comes to the...
Lodging Tax Compliance: Reducing Risk and Streamlining Efficiency
May 2022Every room rental, meal or ancillary retail transaction will typically involve some formof tax, or at least, an accounting of the exemption from such tax. For something soperpetual and pervasive, it is surprising that hotel operators across the spectrum –from the quaintest inns to the most opulent ultra-luxury properties – continually findthe processes associated with managing sales and use taxes...
Quiz: How well do you know the European short-term renter?
May 2022Short-term rentals have carved out their position as a mainstream option for travelers booking accommodation during their trips. How well do you think you know the European short-term renter? Take this quiz to find out, plus learn some new insights about consumer booking behavior and preferences.
Target beware: Not all SPACs are created equal
April 2022While SPACs with deep travel market expertise and a commitment to long-term growth offer a compelling value proposition, there are wide variations in SPAC quality, and overall, the category has underperformed. In some cases, sponsors and hedge funds, sometimes called the SPAC mafia (you can't make this stuff up), have reaped big rewards while leaving retail investors holding the bag. As the risks of...
Looking ahead to a sustainable, peer-to-peer car rental segment
April 2022There has been increased conversation on the future of sustainable tourism across the travel industry, and within car rental, the future of sustainable fleets. Some key steps have been taken toward incorporating greener options. Avis and Enterprise have both expressed intention to grow within their EV strategies, though they remain in more preliminary phases of their plans. Enterprise has rolled out...
1 thing to know about each major European market in 1 minute
April 2022Slowly but surely, the European travel market began to mount its recovery in 2021. After dipping to just 64% of its 2019 size in 2020, gross bookings climbed a projected 31% in 2021. Each major European market is undergoing developments that point to a cautious but optimistic recovery in 2022, with projected double-digit gains for the next several years. Here’s one thing to know about each major...
The difference between touchless and frictionless travel
April 2022While touchless interactions have eliminated the need for travelers to physically put their hands on a publicly used surface, touchless solutions still often require the traveler to drive the process through their smartphone. Depending on the complexity of that effort, the experience may be touchless but certainly not frictionless. True frictionless travel eliminates the use of all credentials, and...
What’s next for the U.S. airline market?
March 2022Airlines have ambitious goals for 2022 and beyond. They need to invest heavily in technology, reach sustainability goals and invest in partnership to offer more connected routes. Representing 37% of U.S. travel market gross bookings, here’s what’s next for U.S. airlines in the coming years.
Three key developments in the U.S. OTA market
March 2022OTAs delivered $65.2 billion in gross bookings in 2021, reaching 82% of pre-pandemic levels (2019).
Hotel and lodging represents 51% of all U.S. travel gross bookings
March 2022In 2022 and beyond, the industry should benefit from an increase in business and international travel, as well as groups and meetings demand. Phocuswright projects 2022 gross bookings to rise another 18%.
By 2023, hotel supplier-direct will again surpass OTAs
March 2022After experiencing a rebirth in 2021, OTAs gained more than half of hotel online sales in 2021. However, the supplier-direct channel was able to capitalize on certain marketing and loyalty campaigns to gain back share.
The 7 biggest tech trends influencing travel in 2022
March 2022Each year, Phocuswright's expert analysts identify the technology and innovation trends that will influence travel significantly in the years to come. These seven trends reveal a dramatic acceleration in digital change that has taken hold in the travel industry.
The most used booking platforms for short-term rentals and what makes them attractive
February 2022Travelers associate more familiar short-term rental (STR) brands with a better product offering and performance - either due to inherent strengths or due to the brand halo. However, streamlined search capabilities and a good user interface are still very important to accommodation shoppers. Nearly two thirds of STR users give priority to instantly bookable properties when searching. Here are the...
Myth-busting the new digital nomad
February 2022The demographics of the New Nomad population illustrate that many of the previously held assumptions about digital nomads are outdated. The population's age distribution, education level, employment status and income paint a very different picture of the nomadic travel trend.
10 things you might not know about the travel startup landscape in 1 minute
February 2022Recently, investors have backed more transactional startups than other business models. Funding to payments, SaaS/PaaS and fintech horizontals is on the rise. Here's 10 things you might not know.
Top drivers of conversion for short-term renters
February 2022When travelers decide to book a short-term rental (STR), they are often choosing among multiple properties. What makes a property stand out? The character of STRs is a key draw, and many STR users actively seek out properties with an interesting look and feel. Here are the top considerations and drivers of conversion for short-term renters.
These regions lead in innovation and startups
February 2022Here’s where travel startups are being founded and a breakdown of where innovation is thriving by region - in less than 3 minutes.
5 things to know about European attitudes on sustainability
February 2022Many Europeans have strong opinions on which travel behaviors they are willing to adapt or reduce. If sustainable options are well priced, Europeans would consider implementing those alternatives. Here are 5 things to know about their attitudes toward sustainability.
Business travel decimated, yet funding to startups explodes
January 2022Covid-19 decimated business travel, but the longer-term impact of the pandemic on the future of work has the potential to permanently rewrite the rules for corporate travel – and for the way startups in this space raise capital and operate. A vertical that has raised over $2.6B in funding since 2010, corporate travel startups are poised to see growth in 2022 and beyond.
1 in 3 travel startups are lodging-centric
January 2022Led by an acceleration of short-term rental startups, highlighting the consumer opportunities and related B2B technology and distribution needs of the segment, Lodging startups have collectively raised $12.4B since 2010.
The Critical Role of Independent Distribution in the U.S. Travel Industry
January 2022The U.S. travel sector has been badly affected by the COVID-19 crisis, although there are encouraging signs of a rapid recovery. Gross revenue is rallying and full recovery to 2019 levels is expected within the next several years.
Latin America travel market poised to hit $62.1B revenue by 2024
January 2022In the LatAm travel market, uncertainty is still present and travel companies must keep an observant position to see what happens in the coming months. However, with the new year upon us, the worst is behind the Latin America travel market. Here’s a complete overview of the LatAm market, with projections for 2022 in gross bookings, booking and channel data, a breakdown of country-specific data,...
Travel Tech: Creating Value and Driving Recovery
January 2022Return to 2019 revenue levels and growth is expected by 2025, as the recovery of the sector will be steady but slow. Given their key role in connecting buyers with sellers, travel intermediaries will play a significant role in this process.
7 gaps between AI proof vs. promise
January 2022The vision of completely automated, personalized processes using AI remains perfectly valid, but the reality of today's AI technology reflects a field that is still very much in the emerging stage. All AI initiatives should focus on enhancing human services, not just replacing them, and account for current limitations while planning for the future capabilities of AI technology.
10 things you might not know about the New Nomad in 1 minute
February 2022The demographics and behaviors of the New Nomad population illustrate that many of the previously held assumptions about digital nomads are outdated.
Phocuswright Europe Post-Show Report
August 19, 2021Travel companies brave staffing shortages amid burning demand.
Research round-up: A highlight of research insights from 1Q22
April 2022Here's a look at the most important research and data Phocuswright has published so far in 2022.
The Professionalization of U.S. Short-Term Rentals
May 2022Short-term rentals (STRs) were already on the path to becoming an integral part of the lodging landscape over the last decade. But pandemic-induced demand thrust them into the limelight and accelerated their growth. STRs are projected to account for 27% of the U.S. lodging market in 2021, a 10-point increase in just two years.
