Travel's Third-Largest Sector Faces Its Defining Decade

A report by Phocuswright and Arival shows the in-destination experiences sector reached $271 billion in 2025, surpassing pre-pandemic levels, and is projected to exceed $340 billion by 2029. Online channels are expected to rise from 17% of bookings in 2019 to 42% by 2029, still below the global travel industry's 64%. OTAs are the fastest-growing channel.