Market Trends

📌 In 2026, Skyscanner rebranded its Hotels platform to Stays, offering over 3.5 million accommodations. A survey of 22,000 global travelers revealed that 64% of Gen Z and 61% of Millennials chose destinations based on accommodations, with Gen Z prioritizing experiences. The revamped Skyscanner platform caters to these preferences, providing various options like hostels, hotels, and unique stays. Skyscanner also aids budget-conscious travelers by enabling easy comparison of accommodations and exploring affordable neighborhoods.

🏨 Rising construction costs and tightened credit conditions are affecting luxury hospitality development globally, with a focus on sustainability and personalization over opulence. The US is seeing a US$84 trillion wealth transfer influencing Gen X, Millennials, and Gen Z preferences for conscious consumption. Projects like Lagen Island Resort and Umana Bali highlight this shift. Success now depends on market-aligned product offerings and leveraging cultural and natural contexts for unique experiences, as seen in the Rissai Valley, a Ritz-Carlton Reserve.

📅 Italy’s travel market will reach €30 billion in gross bookings by 2025, growing 4.5% annually. Digital channels account for 58% of bookings, with mobile leading. Growth spans all major segments like hotels, airlines, and rail. Despite geopolitical uncertainties, Italy's appeal and digital evolution drive this upward trend.

🛫 Phocuswright's recent research highlights how premium travel is defined by privacy, well-being, and exceptional service. While baby boomers lean towards seamless, all-inclusive trips, millennials and Gen Z value unique experiences and insider access. Safety and quality dining are seen as fundamental rather than differentiators. This insight is vital for travel suppliers striving to differentiate and establish lasting loyalty in a competitive market.

🏖 Wellness tourism has doubled in size over the past decade, reaching US$894 billion in 2024 and projected to hit US$1.4 trillion by 2029. Travelers are incorporating wellness into every trip, even prioritizing it over other expenses. Demand spans geothermal destinations, silent retreats, and spa resorts. Governments, hotel brands, and investors are responding rapidly. Online travel platforms face the challenge of creating scalable products to meet this demand before opportunities diminish.

🌏 Spain's travel market in 2025 stood strong, with 96.8 million international arrivals and gross bookings at nearly €39 billion. Growth was fueled by Spain's momentum and travelers shifting from the Middle East due to geopolitical issues. Hotels achieved record revenues, while the rail, aviation, and online travel sectors saw significant advancements. Despite challenges like overtourism and transport disruptions, Spain is well-positioned for future success.

🌏 Japan's travel market achieved US$94.2 billion in gross bookings in 2025, marking an 8% increase, with a record 42.7 million inbound arrivals. Outbound travel was 14.7 million. A stronger yen validated growth, shifting Japan from an outbound market to focusing on inbound tourism. Policymakers now view tourism as crucial for the economy, emphasizing value over volume, regional distribution, and handling success-related challenges.

📈 U.K. online travel agencies (OTAs) are projected to reach £10.3 billion in gross bookings by 2025, marking a record high. However, OTA market share continues to decline for the third year. Supplier-direct share is expected to grow slightly from 78% to 81% by 2029. The distribution battle is stabilizing, with hotels as the exception where OTAs and direct bookings maintain equal competition. Phocuswright's 2026 report analyzes these trends and potential changes.

🏨 PPHE Hotel Group Ltd, founded in 1989 and listed on the London Stock Exchange, operates 39 hotels with about 9,000 rooms and 8 campsites with around 6,000 units in Europe and beyond. In 2025, the group achieved revenues over €500 million, a 5.3% increase from the previous year, and a gross operating profit exceeding €160 million. The group's real estate value is over €1.2 billion. David Fattal won the 2024 Hospitality-ON Grand Prix for expanding the Fattal Group to over 300 hotels.

🌎 Mexico outperformed the U.S. and Canada in Travel & Tourism in 2025, with its GDP growing by 1.8%, surpassing the U.S. at 0.9% and Canada at 1.2%. Mexico's international visitor spending rose 3.5%, while the U.S. and Canada saw declines of 4.6% and 3.5%, respectively. Visitor arrivals in Mexico increased by 6.1%. The 2026 FIFA World Cup is projected to boost Travel & Tourism GDP growth by 6.4% in Canada, 2.4% in Mexico, and 2.1% in the U.S.