Market Trends

🏖 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.

🌎 In 2026, Central and South America's Travel & Tourism sector is set to surpass the global average, with a 4.1% GDP growth, compared to the global 3.2%. International visitor spending in the region is expected to rise by 7.8%. Ecuador leads with an 11.6% GDP growth, while Venezuela's sector grows by 33.2%. Globally, Travel & Tourism will contribute $12 trillion, or 9.9% of GDP, supporting 376 million jobs. This growth highlights increased domestic demand and lower geopolitical disruptions.

🏨 Lifestyle hotels are the fastest-growing sector in global hospitality, driven by post-pandemic demand for experiential travel. In Asia Pacific, growth is rapid yet under-penetrated, with Gen Z preferring these hotels for their cultural and technological appeal. Despite rising construction costs, CBRE suggests conversions as a cost-effective investment strategy. As Gen Z's spending power grows, lifestyle hotels are set for sustained expansion. Gen Z is the largest demographic in the region, influencing market trends significantly.

📚 Major hotel groups have increased margins and customer ownership thanks to direct booking strategies over the past decade, as of May 28, 2026. Despite stable OTA market share, hotels benefit from lower commission costs and enhanced loyalty programs. U.S. business travel brands see more direct bookings compared to leisure properties internationally. AI travel assistants might impact both hotel and OTA visibility, posing a future distribution challenge.