In 2023, generative AI (GenAI) took center stage in the travel industry, driving efforts to optimize everything from customer interfaces to back-end operations. Leading companies including OpenAI, Google, and Amazon, accelerated the development of more advanced language models, influencing travel companies to invest in and experiment with GenAI to address their needs. Consumer acceptance is still mixed, with usage remaining relatively low for the time being. As GenAI technologies evolve, the travel sector is poised to see significant changes in how services are marketed, sold, and managed.

Analysts: Cathy Walsh, Michael ColettaTopic: Technology InnovationSegments: Air, Hotels & Lodging, Online Travel AgenciesRegions: Asia Pacific, Europe, U.S. & CanadaResearch Type: Article

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The U.S. cruise industry has soared to new heights in 2023, with gross bookings rising an impressive 122% over the previous year, surpassing previous peaks. This resurgence is underpinned by robust growth in new and younger cruiser demographics, coupled with increases in both onboard and pre-cruise spending. Looking ahead, the cruise sector will tackle emerging challenges such as port capacity and environmental impact, with innovative uses of AI enhancing everything from passenger experience to operational efficiency.

Analysts: Marilyn Macallair, Michael ColettaTopic: Market Overview & SizingSegments: Air, Hotels & Lodging, Short-Term RentalRegion: U.S. & CanadaResearch Type: Report

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This data sheet provides quick and easy access to updated U.S. travel market sizing data and projections from 2021-2027, including online and total markets, segments and key distribution channels. Much of the data included here, along with expanded analysis, is also featured in Phocuswright’s U.S. Travel Market Report 2023-2027 series.

Analysts: Coney Dongre, Stan Pawlow, Lorraine SileoTopic: Market Overview & SizingSegments: Air, Car Rental & Ground Transportation, Cruise, Hotels & Lodging, Tours & PackagesRegion: U.S. & CanadaResearch Type: Market Data Sheet

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As the digital landscape evolves, U.S. online travel agencies (OTAs) continue growing, with 2023 witnessing a solid yet decelerated 14% expansion in response to a stabilizing consumer demand post-pandemic. Hotels continue constituting the majority of OTA gross bookings. Nevertheless, the channel faces customer retention challenges. They aim to address them with technological innovation, leveraging breakneck technological innovation.

Analyst: Lorraine SileoTopic: Market Overview & SizingSegments: Air, Hotels & Lodging, Short-Term RentalRegion: U.S. & CanadaResearch Type: Report

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Germany's travel market reclaimed its position as Europe's largest in 2023, with an 18% increase in gross bookings reaching €68 billion, signaling a full recovery to pre-pandemic levels. Online transactions continued to dominate, driven by robust growth across all travel segments and a significant shift towards direct online sales by suppliers. Mobile bookings also made substantial strides. The healthy performance extended to various sectors, benefiting from normalizing travel patterns. This resurgence marks a pivotal era of digital transformation and re-stabilization in the German travel industry, set against a backdrop of ongoing challenges like inflation and sector-specific strikes.

Analysts: Ralph Merten, Cathy WalshTopic: Market Overview & SizingSegments: Air, Car Rental & Ground Transportation, Hotels & Lodging, Online Travel Agencies, Rail, Tours & PackagesRegion: EuropeResearch Type: Report

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Spain's travel market completed its recovery in 2023, with gross bookings rising 36% to €34.6 billion. Online transactions led this growth, advancing to record levels. The shift towards mobile also gained momentum, reflecting growing consumer confidence, Hotel bookings surpassed pre-pandemic levels significantly. Looking ahead, the Spanish travel market is poised for moderated growth, facing challenging by economic conditions and digital advancements.

Analysts: Fabian Gonzalez, Karen BurkaTopic: Market Overview & SizingSegments: Air, Car Rental & Ground Transportation, Hotels & Lodging, Online Travel Agencies, Rail, Tours & PackagesRegion: EuropeResearch Type: Report

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The U.S. hotel and lodging sector marked 2023 with record-breaking revenue, buoyed by high demand and surging average daily rates. The industry, adapting to post-pandemic norms, anticipates moderated growth in 2024, against a backdrop of a challenging economy and changing consumer preferences. These challenges will push innovations and strategic operational changes for the sector.

Analyst: Lorraine SileoTopic: Market Overview & SizingSegments: Hotels & Lodging, Short-Term RentalRegion: U.S. & CanadaResearch Type: Report

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Following the robust 2022 recovery, the U.S. travel market is still re-establishing travel normality, and therefore some fluctuation is ongoing. Featuring healthy 13% year-over-year growth in 2023, the market finally surpassed pre-pandemic levels. Gross bookings will continue to climb moderately throughout the forecast period, reflecting the anticipated normalization. 

Analysts: Lorraine Sileo, Charuta Fadnis, Marilyn Macallair, Coney Dongre, Michael ColettaTopic: Market Overview & SizingSegments: Air, Car Rental & Ground Transportation, Cruise, Hotels & Lodging, Online Travel Agencies, Rail, Tours & Packages, Traditional Agencies & TMCsRegion: U.S. & CanadaResearch Type: Report

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Demand remains high for the U.S. airline industry, as passenger numbers surpass pre-pandemic levels in 2023, and airline gross bookings continued their double-digit ascent for the third consecutive year. Direct distribution channels dominate airline sales, as suppliers embrace technological developments that directly impact customer behavior. While the industry navigates new challenges and the lingering effects of disruptions on the price, sustainability and safety fronts, growth will also moderate as the market restabilizes.

Analyst: Lorraine SileoTopic: Market Overview & SizingSegment: AirRegion: U.S. & CanadaResearch Type: Report

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Amidst the technological evolution of COVID recovery, sustainability has become a cornerstone, with major companies integrating green practices into their travel policies, reflecting a broader shift towards environmental responsibility. However, this commitment has raised some questions about its genuineness, when considering the range and depth of corporate emission reduction targets, and its impact on the bottom line. The future of corporate travel will not only hinge on financial recovery but also on the successful integration of sustainable practices, reshaping its framework in an increasingly eco-conscious world.

Analyst: Lorraine SileoTopics: Technology Innovation, Business TravelSegments: Air, Car Rental & Ground Transportation, Hotels & Lodging, Online Travel AgenciesRegions: Asia Pacific, Europe, U.S. & CanadaResearch Type: Article

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