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phocuswright.com

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  • 6 min

30 data-driven insights to make your organization smarter

📈 Phocuswright's data projects global gross bookings to grow from $1.6 trillion in 2024 to $1.72 trillion in 2025. Online gross bookings will increase from $1.0 trillion in 2024 to $1.2 trillion by 2026, capturing 65% of the market. In 2024, online short-term rental bookings hit $176.3 billion. Over 75% of online air ticket sales were direct from airlines. North America's gross bookings are expected to reach $568.5 billion in 2025. Funding for travel startups fell to a 10-year low in 2023 at $5.2 billion, with $4.3 billion by 3Q24. B2B startups are outpacing B2C in funding, and 50% of travelers anticipate using GenAI within the next year.
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  • 2 min

The future of the TMC

📊 American Express GBT is currently attempting to acquire CWT, facing resistance from the U.K. Competition and Markets Authority over concerns of limiting choices for multinational corporations. Traditional TMCs like American Express GBT, BCD Travel, and CWT have been in service for decades and invested millions in technology updates. New entrants within the last 10 years, such as Navan, Travelperk, and Spotnana, are building tech stacks around the IATA New Distribution Capability (NDC) and embracing the API economy, challenging the established TMCs' dominance. Major TMCs have responded by investing in their tech stacks and online booking tools (OBTs) to rival new entrants.
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Phocuswright Research Roundup 4Q24

🏖️ Travel has risen in the U.K., France, Germany, Italy, and Spain over the previous year, with decisions influenced by value and price. Social media usage is increasing for trip planning and idea sourcing. The report surveys consumers in these countries who traveled in 2023 and are planning to travel in 2024. It examines European consumer behavior, technology's impact on travel planning, and future travel expectations amidst rising costs and sustainability concerns.
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5 key findings on how American travelers shop and book air

✈ 65% of U.S. travelers flew in the past year, a decrease from 68% the previous year. Age differences emerge in travel planning, with 18-34 year olds more likely to use social media for transportation decisions than those 55+. Direct online booking is preferred by older travelers, while under-55s opt for OTAs. Cost concerns may affect future air travel decisions. Key themes include the role of social media and booking channels in travel, performance of air loyalty programs, and consumer sentiment on future air travel. Data reflects travel up to July 2024.
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  • 1 min

$1.2T in online bookings by end of 2026

🏖 Global travel gross bookings to rise from $1.6 trillion in 2024 to $1.72 trillion in 2025. Online gross bookings forecasted to hit $1.0 trillion in 2024 and $1.2 trillion by 2026, accounting for nearly 65% of total bookings. U.S. travelers in 2024 preferred domestic travel, while Europeans favored international trips. Phocuswright's report offers detailed insights into the global $1.61 trillion travel market, covering market sizing, trends, consumer behavior, technology, sustainability, payments, and funding.
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4 ways GenAI will impact travel startups

💻 Jensen Huang, CEO of Nvidia, proposed a future with enterprise software comprising AI-powered chatbots at Nvidia's GTC in March 2024. Nvidia overtook Apple as the most valuable company in October 2024. Klarna, a fintech firm, cut ties with Salesforce and Workday in August 2024 to focus on AI automation. SaaS/PaaS for travel jumped to over 12% of all travel-related funding in 2023. Phocuswright's June 2024 report "True Automated AI in Travel Is Coming" discussed the rise of autonomous agents. OpenAI launched a more advanced AI model series, o1, in September 2024.
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