The U.S. hotel & lodging market did not just recover in 2022, it prospered. High demand lifted average daily rates (ADR) and occupancy, leading to a record-breaking year as room revenue swept past pre-pandemic highs. The segment exhibited a healthy 33% year-over-year growth in gross bookings and surpassed 2019 totals handily. Nevertheless, staffing issues and economic concerns continue plaguing the sector, and will pose further challenges in the short-to-medium term.

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

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The U.K. continued its post-COVID recovery in 2022, with the reopening of international borders. The market exhibited phenomenal 127% year-over-year growth, due in tandem to a travel-hungry populace and inflation-fueled price surges. While gross bookings spiked, the number of travelers still lags, in part due to economic pressures. Featuring the second-highest online penetration globally, the country’s online gross bookings were at their highest proportion to date, and are expected to beat pre-pandemic totals in 2023. Meanwhile, the broader market will take until 2025 to surpass its earlier high. Through the remainder of the forecast period, growth will normalize as economic uncertainty may inhibit consumer purchasing power and the ability of suppliers and intermediaries to effectively execute their growth plans.

Analysts: Dirk Rogl, 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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The packaged travel segment grew 29% in 2022, from $11.3 billion to $14.5 billion, continuing its recovery. The return of complex trips (and therefore, travel advisors) contributed to offline channel share rebounding more quickly. Higher trip spend and the reopening of international markets have driven the positive change, but challenges remain, largely in the form of economic and supply chain uncertainty. The segment’s growth will taper and stabilize through the forecast period, reflecting the broader market’s recovery pattern.

Analyst: Michael ColettaTopic: Market Overview & SizingSegments: Tours & Packages, Traditional Agencies & TMCsRegion: U.S. & CanadaResearch Type: Report

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It was a mixed recovery year for German travelers, and in turn for the Germany travel market. While 2022 featured 85% year-over-year growth and the elimination of travel restrictions, Germans felt considerable price pressure, largely driven by inflated utility costs stemming from the Russian invasion of Ukraine. Despite significant growth in several segments, full recovery is not expected until 2026. In light of the ubiquity of smartphone usage, online penetration and recovery precede that of the overall market, with 2022 online totals having matched 2019. Growth will be more measured throughout the remainder of the forecast period as the German market continues seeking broader economic stabilization.

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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By all available metrics, the U.S. car rental market exceeded expectations in 2022. Despite inventory, staffing and microchip shortages, the segment grew by 24% year-over-year. Daily rates rose to new highs, but given current supply chain constraints and lack of economic relief, the segment anticipates steady, tepid growth moving forward.

Analysts: Michael Coletta, Madeline ListTopic: Market Overview & SizingSegment: Car Rental & Ground TransportationRegion: U.S. & CanadaResearch Type: Report

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Spain’s tourism market performance in 2022 was about as good as could be expected. Amidst COVID recovery, the cloud of economic crisis and war breaking out in Europe, the 2022 gross bookings total represented roughly 70% of 2019 revenue. Despite the rebound, full recovery is not expected before 2026. Nevertheless, specific segments will bounce back sooner. Developments in the rail and hotel segments will be interesting to watch.

Analysts: Fabian Gonzalez, 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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The European travel market is still facing headwinds in its post-COVID recovery. Featuring nearly 69% year-over-year growth in 2022, the market nevertheless still came up short of 2019 totals. Rebuilding will continue through 2025, when 2019 totals will finally be surpassed and further growth is finally anticipated. The global return to cross-continental tourism is slated for 2023 and beyond, which will serve as a major recovery factor.This report series features six key markets comprise the Europe travel market: France, Germany, Italy, Scandinavia, Spain and the U.K. Collectively, the series provides comprehensive market sizing and projections for the European travel industry from 2019-2026.

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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This data sheet provides quick and easy access to updated Eastern Europe travel market sizing data and projections from 2019-2026, 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 Eastern Europe Travel Market Report 2022-2026be.

Analyst: Krassi SimonskiTopic: Market Overview & SizingSegments: Air, Car Rental & Ground Transportation, Hotels & Lodging, Online Travel Agencies, Rail, Tours & Packages, Traditional Agencies & TMCsRegion: EuropeResearch Type: Market Data Sheet

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U.S. Airlines face business turbulence regularly. Questionable service, too-high fees and delays are persistent concerns in the industry. Nevertheless, 2022 continued the chaotic return to the skies. In COVID recovery, airlines did grow 73%, surpassing the 2019 gross bookings benchmark. As the corporate world cautiously re-enters travel, online bookings and leisure travel dominated. While supply chain and staffing shortages, along with recession mire airlines from returning to pre-pandemic passenger volumes, slow-but-steady growth is still anticipated throughout the forecast period.

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

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Phocuswright has been researching the travel agency distribution landscape in the U.S. since 2006. Our initial study examined the possibility of travel agency extinction. Instead, with business models changing, the need for professional and personal services has remained high throughout. Travel agents are not only surviving, but they are also thriving.This 2022 study focuses on the travel agent community. The pandemic severely tested the strengths of networks and relationships and, it brought home the importance of travel agents and the wealth of knowledge they hold.

Analysts: Claudia Unger, Charuta FadnisTopics: Market Overview & Sizing, Destination & Activities MarketingSegments: Air, Car Rental & Ground Transportation, Cruise, Hotels & Lodging, Tours & Packages, Traditional Agencies & TMCsRegion: U.S. & CanadaResearch Type: Report

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