5 charts to know

Travelers’ comfort using GenAI tech

Nearly half of travelers would be comfortable in a chatbot interaction where they provide their trip preferences and the AI platform offers a range of recommendations.

In addition to travelers' broad awareness of generative AI - and despite some of the "doom and gloom" scenarios painted in the media about the potential dangers of the technology - a significant share of those who are aware of it report they would be extremely or somewhat comfortable using a GenAI tool to help them plan a trip according to Phocuswright’s GenAI and Emerging Tech Use Among Travelers.

Looking ahead in the Northeast Asia travel market

In 2022, gross bookings rebounded by 78% to US$19.8 billion after the region reopened.

According to Phocuswright’s research report Northeast Asia Travel Market Report 2023-2026, optimism is returning, although the region is characterized by uneven recovery rates and, in the cases of South Korea and Taiwan, more residents traveling overseas than inbound arrivals. Consequently, the outlook for 2024 is mixed. Looking ahead, there are three key trends to note for the Northeast Asia travel market.

Rebounding demand for hotels

The incidence of U.S. hotel stays was at parity with 2019 in 2022 (67% vs. 66%) after a dip in the intervening years, while for U.S. STRs it remained lower than 2019 (25% vs. 28%).

According to Phocuswright’s research report on the segment Global Short-Term Rentals 2023-2027, the slowdown can be attributed to the following:

• Rebounding demand for hotels, which were hit harder during the pandemic
• The recovery of business travel, which tends to be hotel-centric
• A return to offices, resulting in fewer people working while traveling - a trend which was conducive to STR stays
• Increasing regulations on STRs in many key markets

Do travelers connect overtourism and sustainability?

The first step to understanding the traveler's relationship with overtourism is understanding the degree of traveler awareness and concern over it.

According to Phocuswright’s Far From the Madding Crowd? The Truth About Overtourism and Dispersalthe average traveler does not see an apparent connection between overtourism and sustainability as a cause. Only 13-21% of travelers across markets view visiting less trafficked or off-the-beaten-path destinations as a form of sustainable travel.

4 trends point to positive outlook for major European markets

Consumers in the U.K., France, Germany, Italy and Spain consistently rank travel as their highest-priority discretionary spending area.

According to Phocuswright’s latest travel research report Europe Consumer Travel 2023: Major Markets Compared, the outlook for travel in the next 12 months is generally positive for all major markets. Here are 4 trends that the research has uncovered:

• Nearly all travelers in all countries expect to take at least one trip.
• German travelers are the most likely to intend international travel, while those in Italy and Spain are most likely to stay domestic.
• French travelers have a lower intention of booking both hotel and air, possibly due to their higher cost-sensitivity.
• In contrast, Germans, being least sensitive, exhibit a higher intention to travel abroad.

Bonus: The 6 biggest trends in travel innovation and tech

The most significant innovation trends in travel technology and distribution for 2024 and beyond.

Each year, Phocuswright's expert analysts identify the technology and innovation trends that will significantly influence travel distribution and the wider industry in the coming year and beyond. In 2024, of course we’re giving generative AI the attention it deserves. But we’re also bubbling up underappreciated technologies, preparing for a future of digital identities and currencies, and keeping the focus on sustainability.