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LCCs gain an edge in APAC air market
March 2023Though all airlines in the APAC market suffered greatly due to the pandemic, LCCs' low-cost base and quicker turnaround times will provide an edge in recovery. In the recovery since 2022, short-haul international travel has been the first to return, benefiting LCCs. As a result, their share of the air market rose to 19% in 2022.
Influencers and Social Commerce in Travel
March 8, 2023A preview of one of Phocuswright's Travel Innovation and Technology Trends 2023: The Future of Social Media, Influencers and Social Commerce in Travel
What will the future of business travel look like?
February 2023What will the future of business travel look like? 5575 Considering all the inhibitors at play, what will the future of business travel look like? Experts are optimistic that it will be much more efficient, personalized and sustainable. As business travel recovers from the turbulence of COVID-19, the n
Optimism abounds for the female-led travel agent channel
February 2023The female-led, leisure-dominant travel agent segment reports an overall increase of 108% in gross bookings over the past 12 months. As online travel penetration in the U.S. has plateaued, travel advisors have carved out their niche in the industry. Personalization - long sought by suppliers - is a keystone of travel advisors due to their understanding of clients' travel needs. Suppliers can benefit...
APAC expected to regain top spot as the world's largest regional travel market by 2025
February 2023The Asia Pacific travel market, the world’s largest regional market pre-pandemic, continues to face significant pandemic-related challenges, though pent-up demand is driving a significant rebound in most countries. Market recovery and developments vary, due to differing government restrictions, traveler sentiment and public health policies.The Asia Pacific travel industry is preparing for a rebound...
Preview: Travel Innovation and Technology Trends 2023
February 8, 2023A preview of the most significant innovation trends in travel technology and distribution for 2023
The tech, companies and manufacturers leading autonomous driving
February 1, 2023Much has been written about the travel industry's concern that large tech companies are becoming gatekeepers to traveler access, and their push toward robotaxi services could be viewed as an effort to expand their digital influence into the mobility sector. Of course, truly autonomous vehicles may have a broader impact on everything from airport transfers to intercity journeys, and even as a...
$11.2B mobile gross bookings projected in NE Asia by 2025
January 2023In Northeast Asia, the mobile share of online gross bookings peaked in 2021 and although this may moderate slightly, an upswing in travel activity will see mobile booking volumes take off. Mobile gross bookings in 2023 will comfortably surpass 2019 levels and a projected $11.2 billion in 2025 would be more than double the 2019 record. The mobile travel realm is especially competitive in South Korea....
5 things to expect in the Southeast Asia travel market by 2025
January 2023After plummeting by nearly 72% in 2020 and another 42% in 2021, 2022 is anticipated to boast a 207% recovery. While strict lockdowns curtailed leisure travel throughout the pandemic, the reopening has proved promising for the region. With promotion of domestic travel and digitization trends, the future of Southeast Asian travel appears to offer many new opportunities. Nevertheless, further recovery...
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The short-, mid- and long-term future of tokenization in travel
January 2023The tokenized future will enable a consumer to put forth their travel requirements and have suppliers bid on the customer's needs in a transparent and immutable record, where hidden costs and compensation is reduced and the true value of the asset can be sold in a seamless digital fashion. This should not only lower costs for suppliers and consumers, but present new business opportunities not yet...
Travel experiences: operator performance, sentiment and challenges
January 2023Despite the challenges of the past few years, operators are largely optimistic about the future. But operators are experiencing an uneven recovery: Many are still working toward recovery, while a lucky few thrived throughout the pandemic and some ceased operations altogether. Here’s a look at operator performance, sentiment and the challenges they face in 2023 and beyond.
The most popular research topics of 2022
December 22, 2022Here are the research topics, studies and themes that were most popular among readers, subscribers and Phocuswright analysts.
5 things that U.S. travelers plan to do
December 2022Looking forward, U.S. travelers anticipate that their travel behavior will remain stable, or even increase over the coming 12 months. Here are 5 things that travel companies can expect next year.
5 things to know about tours, activities and attractions
December 2022Certain regions, channels and sectors recovering faster than others. Here are 5 things to know about the tours, activities and attractions sector moving forward.
Regional shifts in the global short-term rental market
December 2022The U.S. experienced the smallest drop in gross bookings of short-term rentals in 2020 as well as the largest rebound in 2021, as U.S. travelers embraced the social distancing and remote work advantages for STRs over hotels. In contrast, Europe will experience the slowest recovery in gross bookings in 2022 with APAC looking to recover the fastest.
4 clear objectives to assess cybersecurity threats and performance
November 2022The rapid acceleration of technological advancement and the travel industry's growing reliance on technology to lower costs, improve productivity and drive profitability will only broaden the potential scope, frequency and severity of cybersecurity threats. Taking proactive steps to make cybersecurity a foundation of corporate business strategy will help travel-related organizations deploy more...
A win/win/win: the self-sovereign identity opportunity for travel
November 2022For hospitality and travel, self-sovereign identity is a once-in-20-years technology development that has potential to be a win/win/win, where travel providers, travel intermediaries and travelers can all benefit. A tidal wave of new technologies is coming, introducing disruptive core technology capable of changing the status quo - the centralized model - and opening the possibility of peer-to-peer...
The outlook for travel experiences
October 2022The tours, activities and attractions (TAA) sector has remained resilient and has shown strong signs of recovery in 2022. The sector will play a key role in travel's recovery and in creating economic opportunity. The vast majority of those nearly one million operators are small businesses. They are typically led by passionate entrepreneurs who are on the frontlines of tourism, connecting travelers...
5 things to know about shopping and booking behavior
October 2022In Phocuswright’s latest survey of U.S. consumers, travelers revealed how their booking methods and windows have evolved, what new choices they considered while traveling and how their personal networks impacted decision making. Here are 5 research highlights from the report.
Travelers know where they want to go and many have been there before
October 2022In Phocuswright’s latest survey of U.S. consumers, most travelers knew exactly where they wanted to go, and many had been there before. When asked about the circumstances of their last trip, 63% of travelers said they had the specific place in mind and didn’t research other options.
Future travel plans of U.S. consumers
October 2022Looking forward, U.S. travelers anticipate that their travel behavior will remain stable, or even increase over the coming 12 months. Three in 10 travelers expect to take more domestic trips and two in 10 expect more international trips.
The share of B2C versus B2B funding tells an interesting story
September 2022Although B2B company revenue typically never reaches the lofty heights of B2C juggernauts, their relatively predictable, steady revenue became much more attractive to investors during the uncertainty of the pandemic. Additionally, B2B companies may have better captured attention from potential customers and partners, as openness to technology use for increased efficiency and automation increased in...
A growing gap between arrivals and departures
September 2022Although Australia and New Zealand remain highly desirable to foreign visitors, distance from key markets, rising prices and logistical issues such as visa processing times and flight availability/cost will limit the return of inbound travelers. Despite efforts to target higher-spending international clients rather than more traditional budget-oriented visitors, this growing gap between arrivals and...
Why not travel, too?
September 2022Demand for subscription services exists across all age groups and consumer industries. Compared to 2021, the global subscription e-commerce market is forecast by The Business Research Company to increase by over 64% by year-end 2022. In addition to convenience, other benefits cited for online shopping, which buoys subscription services, include reduced reliance on store visits, lowered costs of...
Strong upward trajectory illustrates robust recovery in India
September 2022The Indian economy underwent difficult circumstances due to repeated waves of coronavirus infection, supply-side disruptions, inflation and, more recently, rising fuel prices due to international geopolitical developments. However, the nation's economic fundamentals have remained robust, and data suggests that broader economic activities have returned to pre-pandemic levels. Looking ahead,...
A region poised for a bright future
August 2022performance across segments in 2021, with 34% overall growth in gross bookings compared to 2020. Travel suppliers across segments reported strong pick up in revenue in the first half of 2022. Backed up by strong demand (from international and regional sources) and a number of government initiatives in the form of exhibitions and festivals, some sectors (like lodging and car rental) have shown higher...
Investor analysis
August 2022Investors who have only participated in a single travel startup funding round have been growing steadily since 2012. The number dipped in 2020 but rebounded in 2021 as travel once again started looking enticing.
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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).