Research Research Insights Articles

Research Insights

Get the latest in travel industry highlights with our free weekly research articles. Sign up to get the latest delivered directly to your inbox.

polaroids of destiantions

Destination and vacation decision making, planning and timing

January 2020

The majority of travelers in seven markets explored by Phocuswright analysts actively research destinations and possible vacations at least several times a year. In markets outside of China, one in five travelers research at least monthly.

European OTAs invest heavily in mobile sites and apps

European OTAs invest heavily in mobile sites and apps

January 2020

In 2019, OTA mobile bookings for the European market climbed 11%, while OTA desktop bookings actually fell 1%, following a flat year in 2018.

A milestone for online bookings in Europe

A milestone for online bookings in Europe

January 2020

By 2021, Europe will surpass the U.S. to have the highest online penetration of any other region.

Will biometric adoption surpass voice?

Will biometric adoption surpass voice?

January 2020

Biometrics is actually more of a reality for travelers than many people may realize. As biometric technology rolls out, businesses must proceed with caution and be mindful of both legal constraints and consumer sentiment and concerns.

people walking on street

A tourism model under siege in Spain

December 2019

The Spanish travel industry has celebrated several years of strong inbound visitation and a healthy domestic market. However, while tourism forecasts for 2019 remained positive in the first half of the year, second-half performance is projected to decline due to the Thomas Cook collapse, the Brexit delay and violent protests in Catalonia.

Travel industry not there yet when it comes to gender equity

Travel industry not there yet when it comes to gender equity

December 2019

488 men and women in travel technology participated in this essential survey, Phocuswright's second detailed look at gender equity. The results uncover how companies within the travel technology ecosystem stack up when it comes to promoting women's leadership.

4 key developments shaping the German online travel market

4 key developments shaping the German online travel market

December 2019

Germany is well positioned to remain Europe's largest travel market. Although revenue dipped slightly in 2018, travel gross bookings are expected to rebound this year.

Recovery continues in French travel market

Recovery continues in French travel market

December 2019

Following several challenging years, recovery continues in the French travel market. The French travel market is projected to grow modestly in the medium term, climbing from €47.0 billion in 2019 to €49.9 billion by 2023.

aerial view of city

Mega investments in travel

November 2019

Funding to travel startups increased 55% year-over-year to $5.7 billion in 2018 . The investors participating in the biggest funding rounds often overlap, as potentially highly lucrative deals are coveted and exclusive to a select few.

chart and numbers

Public OTA gross bookings growth rates slowed in 1H19

November 2019

Across all regions, public online travel agency (OTA) gross bookings growth rates slowed in the first half of 2019 (1H19). Collective gross bookings of publicly reported online companies rose just 11% year over year (YoY) in 1H19, compared to 21% in 1H18.

Adoption and developments in voice use in travel

Adoption and developments in voice use in travel

October 2019

As voice-enabled features become more pervasive, consumers continue to be more comfortable using voice to book travel, with 37% of U.S. consumers saying they would be comfortable doing so.

Total uk travel market projected to grow 1.7% by end of 2019

Total U.K. travel market projected to grow 1.7% by end of 2019

October 2019

The total U.K. travel market is projected to grow 1.7% in 2019, bringing travel gross bookings to £50.8 billion. Bookings are expected to grow at a similar rate annually through 2023. However, given the U.K.'s significant reliance on global travel suppliers and intermediaries, negotiations with the EU represent a wild card that could further impact travel market performance.

The race for platform dominance

The race for platform dominance

October 2019

In 2011, Marc Andreessen, co-author of the first widely used web browser (since turned venture capitalist) famously proclaimed that "software is eating the world," observing that global economies were shifting from being hardware-based to software-based. Fast forward just a few years, and this saying already requires an update: Platforms are eating the world. Platform companies have come to command,...

total immersion in travel planning

Total immersion in travel planning

October 2019

The transition to an immersive web will not happen overnight, but the progress so far makes it clear that it is coming. A clear roadmap exists, and the changes that need to take place are already underway. As supporting technologies continue to evolve, travel companies should continue experimenting with XR functionality and begin to devise a long-term strategy for incorporating immersive...

Hand holding sparks

The definitive report on the state of travel startups

October 2019

Phocuswright has tracked the digital travel startup landscape for over a decade. During this time, the digital travel ecosystem has undergone tremendous transformation. Travel startups continue to raise funding, challenge the status quo and lead the wave of disruption globally. This article previews the key findings from our latest travel research report, The State of Travel Startups 2019.

The evolution of air distribution

The evolution of air distribution

September 2019

Phocuswright's latest travel research, Evolution of Air Distribution, is a comprehensive four-part series analyzing the complex dynamics of the air distribution sector. This includes History and Background, Industry Segment Perspectives, New Distribution and Retailing Models and Challenges and Future Insights.

Personalization: work of genius or an unwanted affront to personal privacy

Personalization: work of genius or an unwanted affront to personal privacy

September 2019

For laser-targeted, highly personalized marketing campaigns, a fine line of demarcation exists between being considered a work of genius or an unwanted affront to personal privacy. That line is independently drawn by each individual, and not controlled by the marketer.

Segments benefit from shift in travel trends

Segments benefit from shift in travel trends

September 2019

Although a smaller share of Americans traveled for leisure in 2018 compared to the previous year, some travel segments clearly benefited from a shift in travel trends.

How China became the world’s 2nd largest OTA market

How China became the world’s 2nd-largest OTA market

September 2019

At $44.7 billion, China had the world's second-biggest OTA market in 2018, compared to the U.S. at $77.1 billion, and its 27% growth over 2017 was more than four times that of the U.S. Overall gains in travel spend are a major driver of this impressive expansion, but OTAs are also aggressively and successfully pursuing both new travelers and a greater wallet share among more experienced travelers.

Winning combo contributes to growth in Middle East travel market

Winning combo contributes to growth in Middle East travel market

August 2019

According to Phocuswright’s latest travel research report, Middle East Online Travel Overview 2019, a winning combination of government investment, positive economic change and consumer affluence is leading the Middle East travel market into a period of strong growth. 

Global online bookings growing 2x as fast as overall market

Global online bookings growing 2x as fast as overall market

August 2019

The global travel industry performed better than most other economic sectors in 2018, beating GDP gains in most markets. According to Phocuswright’s latest travel research report, Global Online Travel Overview 2019, total travel bookings increased a projected 7.3% to US$1.4 trillion. Critical to global travel companies, online travel bookings are growing twice as fast as the overall market.

Travel remains an important spending priority for Americans

Travel remains an important spending priority for Americans

August 2019

Each year, the U.S. leisure travel population fluctuates due to economic conditions as well as personal factors. A strong economy usually correlates with growth, while a weak economy can spur a decline, as some Americans opt to forego leisure travel altogether. 2018 bucked the trends. According to Phocuswright’s recent travel research report series, U.S. Consumer Travel 2019, not as many Americans...

Amazon’s flight launch in India

Why Amazon's Flight Launch in India Doesn't Mean That Amazon Is the Next Big Global OTA

August 2019

Amazon launched flights in India in May 2019. Big news? Definitely. Amazon's reentry into travel was much anticipated after its ill-fated effort to build a hotel business in 2014. According to Phocuswright’s latest report Why Amazon’s Flight Launch in India Doesn’t Mean That Amazon Is the Next Big Global OTA, the mere size of the global travel market, $1.5 trillion in 2019, is too big to ignore....

How travelers choose a new vs. repeat destination

Destination decision: new vs. repeat destination

July 2019

Increasingly, travelers operate in an ongoing travel inspiration stage. For travel companies and destinations, more opportunities than ever before are available to engage customers with content. More opportunities are accessible to discover new destinations for consideration. Travelers who seek to visit a new destination will prioritize the places that they have always dreamt of seeing, ticking...

ONE Order: changes we can expect

ONE Order: changes we can expect

July 2019

ONE Order is likely to revolutionize airlines' commercial operations and the broader supporting industry - but slowly. It will allow the industry to move away from a proprietary, technology-dependent model that still uses digitized paper-based processes, to one where airlines and their partners interact in real-time to deliver a customer-centric experience.

Brexit, dead ahead?

Brexit, dead ahead?

July 2019

One of Europe's most influential online travel markets is set to leave the European Union. How will the U.K. go it alone, and which markets and major players will feel the brunt of Brexit? A group of experts came together at Phocuswright Europe 2019 to discuss new borders and old partnerships, fresh challenges and smart solutions, as well as practical ways to maneuver around the...

Research highlights: mid-year wrap up

Research highlights: mid-year wrap up

July 2019

We're halfway through 2019 and the global Phocuswright analyst team continues to produce reports at an unprecedented rate. It's a perfect time to highlight the trends and data that shape our research and reflect the ever-evolving dynamics of online travel. This is what's defining the global travel market in 2019.

Destination selection trends in 5 major travel markets

Destination selection trends in 7 major travel markets

July 2019

Travelers from these markets only take a few leisure trips a year, but travel is rarely far from their minds. Mobile devices mean that information is always at their fingertips, and travelers are eating it up. Destinations and travel marketers need to consistently entice travelers to remain top of mind. 

How Chinese travelers choose where to go

How Chinese travelers choose where to go

June 2019

Though there are several shared themes across markets in the destination-decision process, different travel markets will always have particularities. However, no market stands out as strongly from the herd as Chinese travelers. According to Phocuswright’s latest research on how travelers choose where to go, how Chinese travelers view themselves, how they research destinations, what influences them,...

destination over competitive set resize

Value proposition: Money matters in destination selection

June 2019

Travelers carefully consider many destination attributes during their decision-making process. Whether gathering information about available activities, lodging options, cost, weather, culture, customs and more, travelers contemplate many components when assessing if a place will align with personal desires and requirements.

APAC: Big and getting bigger

APAC: Big and getting bigger

June 2019

Asia Pacific (APAC) is the world's largest regional travel market. With rapid infrastructure development across airports, seaports, railroads, hotels and highways, and disposable incomes on the rise, travel opportunity continues to expand regionwide.

The market for indoor mapping tech

The market for indoor mapping tech

June 2019

Indoor mapping technology has rapidly evolved over the last several years, and airports are some of the prime beneficiaries according to Phocuswright's latest travel research, Consolidation in Indoor Mapping Technology Market. Deployments from FRA to SFO have seen successful results, with impressive revenue, efficiency and customer satisfaction metrics. While GPS will continue to direct travelers to...

Technology

What the world's biggest OTAs have been up to

May 2019

According to Phocuswright's latest Public Online Travel Roundup, Full Year 2018 travel research publication, growth rates in the world of public online travel once again slowed in 2018, but remained in double-digit territory, rising more than twice as fast as the total global travel market. Read the insights into regional focuses for the world's biggest OTAs.

How travelers choose where to go

How travelers choose where to go

May 2019

From perfectly filtered social media posts to heartfelt recollections of friends, visually stunning scenes from movies, and glossy magazine covers, travelers are exposed to an array of inspiration sources that seed ideas of spectacular places they hope to one day see. But with a world of options, travelers must carefully whittle down their options to the one that most speaks to their wishes.

Europe2019WinnerPhoto360

Announcing the 2019 Phocuswright Europe winners

May 2019

Eight innovators presented at the Phocuswright Europe Battleground, the pitch competition for startups, and four innovators presented at Launch, the platform for established companies to introduce new products.

DestinationSelection

Dream, book, travel, repeat.

May 2019

U.S. travelers only take a few leisure trips a year, but travel is rarely far from their minds. Mobile devices mean that information is always at their fingertips, and travelers are eating it up. Learn more about what Phocuswright's new research graphic has to offer ...

Personalization or customization?

Personalization or customization?

May 2019

Personalization continues to increase in importance both to travelers and the companies selling and/or operating travel services. It is now widely recognized that personalized experiences, both online and in real life, yield more satisfied customers as well as profitable brand relationships.

Europe3Largest

By the numbers: Europe's 3 largest markets

April 2019

For many European consumers, leisure travel accounts for a significant share (if not the largest share) of their discretionary spending. Read on to explore the infographic focusing on consumers in France, Germany and the U.K.

AI and the travel life cycle

AI and the travel life cycle

April 2019

Today, AI is touching the traveler directly and powering advanced analytics in back-end travel processes. Take a look at some of the applications and challenges along the traveler life cycle from Phocuswright's latest travel research.

Next wave of travel disruption rooted in AI

Next wave of travel disruption rooted in AI

April 2019

Over the last 20 years, many areas of the travel industry have been transformed by waves of disruption, from technologies like the web and mobile to new product categories like home- and ride-sharing. The next wave is undoubtedly artificial intelligence (AI), a catch-all term encompassing natural language processing (NLP), machine learning, machine vision and robotics. According to Phocuswright's...

2019 travel innovation and technology trends

2019 travel innovation and technology trends

April 2019

Each year, Phocuswright publishes an annual report that discusses the most significant technology-driven issues or developments that will shape travel distribution this year and beyond. This year we again incorporate the views of our extended analyst team, who are industry experts across a range of segments, regions and topics. The report features brief introductions to in-depth discussions on the...

Segment snapshots in the Australia-New Zealand travel market

Segment snapshots in the Australia-New Zealand travel market

March 2019

According to Phocuswright's recent travel research on the Australia-New Zealand (ANZ) travel landscape, improved airline performance propelled the region's travel market to grow a projected 5% in 2018. With online penetration of 44% in 2018, ANZ is one of the most mature online travel markets in Asia Pacific, though offline travel agencies remain a critical channel for complex leisure itineraries...

How U.S. travelers book activities and experiences

How U.S. travelers book activities and experiences

March 2019

A significant share of travel activities historically has been booked offline and in-destination. But advance bookings are increasing as more activities become discoverable and bookable online, making pre-booking easier. In addition, many pre-trip activity bookers simply like having everything planned before they leave for their trip. Recent travel market research explores the U.S. travel activities...

U.S. travel's third-largest segment by size: Experiences

U.S. travel's third-largest segment by size: Experiences

March 2019

Travel is an experience. Active travelers, those who participate in travel activities, are a passionate subset who place high importance on travel. Travel is a key part of their life, and they take more trips and spend more on travel annually than the average leisure traveler. According to Phocuswright's newly published travel research report, travel activities account for 8% of U.S. travel gross...

APAC startups lead in funding

APAC startups lead in funding

March 2019

Phocuswright has been tracking the digital travel startup landscape since 2008, and our annual State of Travel Startups reports have been published since 2012. Digital travel has undergone tremendous transformation over the last three decades. At every stage of product, technology and platform evolution, startups have led - and continue to lead - the wave of disruption in the travel industry.

The need-to-know developments shaping India's online market

The need-to-know developments shaping India's online market

February 2019

Phocuswright's newly published travel research report offers a high-level view of the Indian travel market, with focus on need-to-know developments, trends and stories. Here are the key developments impacting the market now ...

The push and pull of travel advertising

The push and pull of travel advertising

February 2019

The travel industry is no stranger to the ebb and flow of change. Consumer travel behavior has seen massive shifts with technological developments. Travelers are dreaming, researching, shopping and booking travel across devices and being led into the funnel through various advertising channels. The travel industry has bounced back after a few difficult years, and advertising budgets are likewise...

4 notable trends and stories impacting the U.S. airline segment

4 notable trends and stories impacting the U.S. airline segment

February 2019

According to a recent Phocuswright travel research report, U.S. airlines notched a second consecutive year of 5% revenue growth in 2018, fueled by steady capacity additions, an uptick in passenger volume, improved yield and growth in demand for ancillaries. Here are the four most notable trends and stories that are impacting the U.S. airline segment in 2019. 

Direct booking accelerates in U.S. lodging market

Direct booking accelerates in U.S. lodging market

February 2019

The verdict is in: Hotel loyalty rates are paying off - at least for some of the largest chains with robust loyalty programs. It's been roughly two years since many U.S. chains started offering lower rates to loyalty members, circumventing rate parity rules with OTAs. According to a new Phocuswright travel research report, U.S. Hotel & Lodging 2018: Key Developments, hotels are now catching up to...

4 key developments that keep the U.S. OTA market exciting

4 key developments that keep the U.S. OTA market exciting

January 2019

A strong economy and high consumer confidence fueled strong travel performance in 2018. Phocuswright's recent travel research identifies four key developments that make the U.S. online travel agency (OTA) market an exciting one to watch in 2019.