Phocuswright: ANZ Travel Market to Contract in 2026

According to Phocuswright, the ANZ travel market will contract nearly 5% to $37.4 billion in 2026, due to rising fuel costs, geopolitical instability, and cost-of-living pressures. In 2025, the market grew just 3.6% to $39.2 billion. Airlines and hotels are expected to decline, while car rental holds steady. Online penetration reached 59.5% in 2025 and is expected to reach 62% by 2029. Hotels remain the biggest OTA opportunity, but Booking.com's dominance may erode with direct bookings.