by Lacey Pfalz
Last updated: 9:50 AM ET, Wed February 25, 2026
The travel experiences segment, which includes everything from tours to museum visits, is expected to outpace every other major travel segment through 2029, according to data from Arival and Phocuswright, TravelPulse’s sister company.
The two travel data experts joined forces to release the comprehensive Outlook for Travel Experiences 2019-2029, which analyzes the segment from pre-pandemic onward to future expectations.
According to the report, the experiences sector generated $271 billion in 2025, and is expected to grow at a compound annual growth rate of 8 percent from 2023 through 2029, to generate $342 billion.
The research shows that 2 in 3 travelers say experiences, ranging from visiting museums or cultural sites to engaging in wellness activities, play a major role in choosing which destination to visit. In fact, it’s the third-largest segment of travel, behind flights and accommodations.
The report, which analyzed over 1 million online experience listings, surveyed over 5,000 operators, issued a survey of 2,000 U.S. and European-based travelers and included secondary research, found that, while the majority of travel—including flights and accommodations—is booked online, the experiences segment is uniquely less online.
“For years, experiences were called travel’s ‘last untapped opportunity’, but this report marks a turning point,” said Douglas Quinby, CEO and co-founder of Arival. “The sector has not only recovered – it is now the fastest-growing segment of travel, reshaping how people choose where to go and what to do. Travelers are prioritizing experiences like never before, and that shift is powering a global market that’s expanding at remarkable speed.”
Just 33 percent of gross bookings for experiences took place online last year. Compared to the broader travel industry bookings at 64 percent, that’s a markedly lower number.
While digitization is happening, and fast, especially among growing OTAs (online is expected to grow to 42 percent by 2029), the difference is due to the size of these experience businesses—and likely, their uniquely in-person nature.
Three in four of these businesses are small or micro businesses, locals who capitalize on showing tourists their favorite parts of a destination. These could be local tour operators, hiking guide companies or other small businesses. One in three of these operators are also not using an online booking system.
Yet as this segment grows financially, investors will want in. Klook and MyRealTrip are preparing for public offerings, GetYourGuide is planning for a share sale and major travel brands like Airbnb and Expedia are adding new experiences offerings or acquiring OTAs for experiences.
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