Research Roundup 1Q24

GenAI and Emerging Tech Use Among Travelers

Figures: 7
Regions: Europe, U.S. and Canada

Since ChatGPT made its grand debut in late 2022, endless discussion (and some anxiety) about generative AI’s (GenAI's) potential uses, drawbacks and dangers, has naturally followed. Moving quickly, the travel industry has embraced it in full force. Many companies have recognized the technology’s potential in multiple arenas of business, including with consumer-facing interactions.

This article is derived from the findings of Phocuswright’s 2023 consumer travel surveys in Europe, Canada, and the United States, and explores travelers’ awareness of and attitudes toward GenAI and other emerging technologies.
Key topics addressed include:

• Overall traveler awareness regarding recent tech developments including GenAI, virtual and augmented reality
• Discussion of traveler comfort engaging with these technologies
• Where applicable, breakdown of trends by consumer demographic, including age, gender and geographical origin
• Suggestions on how travel companies can best leverage these technologies, as consumers become more comfortable with adoption

Beyond Climate Change: Cultural and Economic Sustainability in Travel

Figures: 11
Regions: APAC, Europe, U.S. and Canada

The term “sustainability” has become synonymous with climate change. While the importance of caring for the environment should not be understated, travelers can neglect cultural and economic sustainability in the face of more pressing climate considerations. Seemingly, a lack of reliable, accessible information poses huge challenges: Tourist areas are coping with cultural erosion, disrespectful tourists, struggles to retain tourism's economic benefits locally, and maintaining affordable housing and resources for locals. Meanwhile, many travelers are none the wiser. While exhibiting positive intentions, the majority need more information and incentives to take actionable steps towards economic and cultural awareness and preservation.

Phocuswright’s Beyond Climate Change: Cultural and Economic Sustainability in Travel is part of a comprehensive consumer research study focused on sustainability in the modern travel environment. Key questions addressed include:

• What is travelers’ awareness level with regard to issues surrounding cultural and economic sustainability?
• How do consumers’ intentions, misconceptions and incentives concerning sustainable travel behavior influence the trip-related choices they make?
• What are travelers’ attitudes regarding who should be responsible for addressing cultural and economic sustainability challenges?
• How does the rapid proliferation of short-term rentals impact economic and cultural sustainability in popular destinations?
• What can travel suppliers, DMOs and other stakeholders do to help bridge the gap between good intent and measurable sustainability actions on the part of the consumer?

Short-Term Rental Market Sizing Interactive Database

Phocal Point - Interactive Data Visualization
Regions: Asia Pacific, Europe, Latin America, Middle East & Africa, U.S. & Canada

Access Phocal Point to compare the most recent data on the global short-term rental market across major regions and channels. Data is presented in a visually interactive, customizable format, and can be exported on demand. This interactive charting tool allows you to:

• Chart and visually benchmark STR market sizing data in gross bookings 
• Compare historical STR market data and projections 
• Segment STR data across major regions (Asia Pacific, Europe, Latin America, Middle East & Africa, North America) and channels (online and offline) 
• View STR gross bookings in U.S. Dollars (US$), Euros (€), British Pounds (£), Chinese Yuan (C¥), Japanese Yen (J¥), Australian Dollars (A$) or Canadian Dollars (C$) 

Phocuswright’s Short-Term Rental Market Sizing Interactive Database is powered by Phocal Point, a data platform that provides a 360-degree view of the metrics and intelligence that help you better understand travel market trends and dynamics. 

Asia Pacific Travel Market Report 2022-2026

Figures: 20
Segments: Air, Car Rental & Ground Transportation, Hotels & Lodging, Online Travel Agencies, Rail

Changes were afoot for the Asia Pacific travel market in 2022-23. While some country markets continued to struggle in 2022, most of the region experienced a solid post-pandemic rebound, which has gained strength in 2023. Pent-up demand swept in a travel spike, as restrictions were finally lifted, and borders reopened to tourism. Full recovery to pre-pandemic revenue levels will still take some time, as recovery continues and economic uncertainty allay a rocketing bounce back. 

For this report series, 12 markets comprise the Asia Pacific travel market: Australia-New Zealand, China, India, Japan, Northeast Asia (including Hong Kong, Macau, South Korea and Taiwan) and Southeast Asia (including Indonesia, Malaysia, Singapore and Thailand). Collectively, the series provides comprehensive market sizing and projections for the Asia Pacific travel industry from 2019-2026, including analysis of key segments, country-level share and trends, distribution dynamics and more.

Other reports in the Asia Pacific Travel Market Report 2022-2026 series:

• Asia Pacific Travel Market Report 2022-2026
• Australia-New Zealand Travel Market Report 2022-2026
• China Travel Market Report 2022-2026
• India Travel Market Report 2022-2026
• Japan Travel Market Report 2022-2026
• Southeast Asia Travel Market Report 2022-2026
• Northeast Asia Travel Market Report 2022-2026
• Asia Pacific Travel Market Data Sheet 2022-2026 (subscriber only)

India Travel Market Report 2022-2026

Figures: 27
Segments: Air, Car Rental & Ground Transportation, Hotels & Lodging, Online Travel Agencies, Rail

India continues to be one of the fastest growing major economies globally. After nearly collapsing due to COVID-related shutdowns and restrictions in 2020 and 2021, India’s travel market witnessed a strong rebound in 2022. Gross bookings for the India travel market grew 72% to $33.2 billion in 2022, ultimately surpassing pre-pandemic totals, and double-digit gains were projected for 2023 as well. While travel gross bookings are not even across all segments, online penetration continues to climb. Sustained growth is anticipated through the rest of the forecast period. 

Phocuswright’s India Travel Market Report 2022-2026 provides a comprehensive view of the India travel market, including detailed market sizing and projections, distribution trends, analysis of major travel segments, key developments and more.

This report is part of the Asia Pacific Travel Market Report 2022-2026 series.

Asia Pacific Travel Market Data Sheet 2022-2026

Gross bookings in the Asia Pacific travel market grew 16% in 2022, still falling short of pre-pandemic totals. While some markets in the region have already surpassed recovery and continue to grow, other big players are still climbing out of their pandemic lows. Online penetration continues rising, and will account for most gross bookings through the forecast period. Positive growth is anticipated through the rest of the forecast period, tapering off as recovery is achieved.

This data sheet provides quick and easy access to updated Asia Pacific travel market sizing data and projections from 2019-2026, including online and total markets, segments and major distribution channels. Much of the data included here is also featured in Phocuswright’s Asia Pacific Travel Market Report 2022-2026.

U.K. Travel Market Report 2023-2027

Figures: 30
Segments: Air, Car Rental & Ground Transportation, Hotels & Lodging, Online Travel Agencies, Rail

In 2023, the U.K. travel market experienced significant growth, with gross bookings increasing 19%, driven by robust expansion in online bookings, mobile transactions, and key sectors like airlines and car rentals. Online bookings continued their surge, highlighting the further shift towards digital platforms and the U.K.’s high online penetration rate. The airline segment performed particularly well, contributing significantly to the market's overall performance. Though challenges like inflation continue to impact market health, the industry is still on a positive trajectory, with moderate projected growth and technological advancements shaping the future of travel in the U.K. through 2027.

This report provides a comprehensive view of the U.K. travel market, including detailed market sizing and projections, distribution trends, analysis of major travel segments, key developments and more. Check out the other reports in the Europe Travel Market Report 2023-2027 series.

France Travel Market Report 2023-2027

France's travel sector witnessed solid growth in 2023, climbing by 12% to over €55 billion, predominantly driven by the resurgence of international travel alongside strong domestic demand. The digital transformation for the French market is evident, with online bookings reaching their highest total to date and mobile transactions constituting 36% of this online revenue. The 2024 Paris Olympics will temporarily amplify gross bookings on all fronts, particularly benefiting the airline and hotel segments through increased international visitation and higher demand in the Paris region. Looking ahead to 2027, the travel market is anticipated to stabilize, reflected in continued but moderate growth as economic challenges and sustainability developments impact consumer purchasing power.

This report provides a comprehensive view of the France travel market, including detailed market sizing and projections, distribution trends, analysis of major travel segments, key developments and more. Check out the other reports in the Europe Travel Market Report 2023-2027 series.

At a Crossroads: Underappreciated Tech in Travel

Emerging technologies have undoubtedly revolutionized many industries, yet the travel industry has not fully unleashed all their potentials. Looking forward, many will play a crucial role in meeting the evolving demands of global travelers, emphasizing sustainability, seamless journeys and hyper-personalized experiences. As higher and higher expectations are set for travel, embracing and strategically implementing these technologies becomes essential for the industry's future growth and innovation. This article explores a critical juncture in travel, delving into why some technologies which have received a lot of publicity remain underappreciated within the industry.

Part of a content series that explores some of the most significant technology-driven trends that will influence travel distribution in 2024 and beyond, this article answers the following key questions regarding travel’s overlooking of certain useful technologies:

• Why have virtual reality, augmented reality, Web3, and the Internet of Things remained underappreciated in the travel industry?
• What are the main challenges the industry faces, in terms of implementation?
• Where have these technologies been deployed successfully, both inside and outside the industry?
• What is the outlook for these technologies in travel, and how can they complement traditional travel experiences without compromising the human-centric nature of the industry?

Who Owns the Customer? How About the Customers Themselves!

In the travel industry, the quest to "own the customer" through the collection of detailed profile and preference data is coming to a head with the dual rise of self-sovereign identity (SSI) and biometrics. If adopted broadly and implemented correctly, SSI can empower travelers to control their personal data, ushering in a new era of personalized and frictionless travel, coupled with lowered fraud risks. Inevitably, digital IDs and biometrics will play a critical role in the transformation. Further combined efforts of the public and private sectors are required to pave the way for seamless travel experiences. 

Part of a content series that explores some of the most significant technology-driven trends that will influence travel distribution in 2024 and beyond, this article answers the following key questions regarding the importance and evolution of SSI in travel:

• How can digital identities and self-sovereign identity (SSI) paired with biometrics remove friction from the travel process and enhance personalization for travelers?
• What are the main drivers behind the acceptance and adoption of digital identities and biometrics within the travel industry, and what role do governments and private sectors play in this transition?
• In what ways are companies within the travel sector experimenting with and implementing SSI, biometrics, and blockchain to create more seamless and personalized travel experiences?
• How does the current landscape and future potential of digital identity and biometrics indicate a transformation in how travel services are provided and experienced? 

Scandinavia Travel Market Report 2023-2027

In 2023, the Scandinavian travel industry signaled a robust recovery, with overall gross bookings growing by 16% year over year, highlighting travelers' renewed enthusiasm and a rebound in air capacity. The industry is poised to outpace pre-pandemic revenue levels in 2024, with online transactions leading the charge. The digital shift is evident, as online bookings now account for 78% of the market, with mobile bookings representing a large share of the online pie and anticipated to grow even further. As in much of Western Europe, economic conditions and sustainability considerations will also play a role in shaping the Scandinavian travel market in the medium term.

This report provides a comprehensive view of the Scandinavia travel market (Denmark, Norway, Sweden), including detailed market sizing and projections, distribution trends, analysis of major travel segments, key developments and more. Check out the other reports in the Europe Travel Market Report 2023-2027 series.

Interested in shaping our next research projects?

Multi-client sponsored research studies bring businesses together to answer timely, topic-specific questions about the travel, tourism and hospitality industry. Learn more about each project:

Scroll, Heart, Fly: Social Media’s Impact on Travel

U.S. Corporate Travel Market: Insights and Outlook

U.S. Short-Term Rentals