Tours and activities growth is outpacing travel overall, distribution is lagging
The Travel Experiences 2026 report, produced jointly by Phocuswright and Arival, sizes and forecasts the global experiences market through 2029 and examines how consumers engage with experiences in practice.
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PhocusWire: Tours and activities growth is outpacing travel overall, distribution is lagging
What It Says
New research from Phocuswright and Arival values the global tours and activities market at $253 billion in 2024, with a projected climb to $342 billion by 2029. In 2024, this sector grew by 17%, significantly outperforming the 6% growth seen in the broader travel industry.
Despite this demand, digital distribution remains a hurdle. Only 33% of experiences are booked online, compared to 64% for the travel industry at large. This lag is attributed to a highly fragmented supply chain where over 70% of operators are small or micro-businesses. Furthermore, walk-up bookings remain surprisingly common, with approximately 20% of travelers under 55 still booking in person.
Why It Matters
For short-term rental (STR) operators, these findings highlight a significant revenue and guest experience opportunity. Travelers are booking multiple activities per trip—averaging between 3.5 and 4.7 bookings—yet they struggle to find and book these experiences online.
As the "home base" for these travelers, STRs are uniquely positioned to bridge the distribution gap. Because travelers are prioritizing the number of experiences over the individual cost per activity, operators who can facilitate easy discovery and booking of local, micro-business tours can drive higher guest satisfaction and potential referral or affiliate income.
Useful Signals
- Sector Growth: Experiences grew 17% in 2024, nearly triple the rate of the general travel market.
- Booking Volume: Travelers are not just booking one tour; they are averaging nearly four activities per trip.
- The Distribution Gap: Two-thirds of the market remains offline, presenting a massive opportunity for guest-facing tech and digital concierges.
- Regional Preferences: Culinary tours are particularly strong in the U.S. (40% popularity), while cultural sites lead in Europe (47%).
- Market Composition: 70% of operators are small businesses, making them ideal partners for local STR hosts but difficult for major OTAs to aggregate efficiently.
STR Tech Report Take
The "experience economy" is no longer a buzzword; it is a quantified $253 billion market that is currently underserved by technology. While major players like Viator and GetYourGuide are growing, the report shows that "experiences bookings are rarely a single purchase" and often happen on the fly.
This creates a vacuum that STR guest apps and upsell platforms (such as those providing digital guidebooks) should fill. If 67% of bookings are still happening offline or via walk-up, the vendor that successfully integrates these fragmented, local micro-businesses into the STR guest journey will win. For hosts, the data suggests that providing a curated list of "bookable" local activities is more important than ever, as guests are clearly looking for volume and variety during their stay.
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