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.
Impact and considerations
ANZ market contraction impacts business travel demand and supplier strategies, relevant for companies with operations in the region.
Key points
- ANZ travel market projected to contract nearly 5% to $37.4 billion in 2026.
- Market grew just 3.6% to $39.2 billion in 2025.
- Airlines and hotels expected to decline; car rental holds steady.
- Online penetration reached 59.5% in 2025, expected 62% by 2029.
- Hotels remain biggest OTA opportunity, but direct bookings may erode OTA share.
Sources and time
- Primary source
- PhocusWire / Phocuswright
- Other sources
- 0
- First source publication
- 18 Aug 2026, 15:00
- Page published
- 19 Aug 2026, 18:04
- Last updated
- 18 Aug 2026, 15:00
- Original links
- PhocusWire All News：Why the ANZ travel market is contracting in 2026 (and what recovers by 2029) (opens in a new tab)Primary source · en · Published 18 Aug 2026, 15:00