The Wellness Travel Boom

It’s Seth Borko, the head of Skift Research here, and boy, am I excited by the reports I have to share with you on this issue.?

Christmas has come early for travel distribution nerds – our Hotel Distribution Outlook 2024 may be my favorite research report of the year! Based on a proprietary Skift Research survey of hoteliers, this sort of detailed information on hotelier channel mix is hard to come by. What’s more, we have historical data dating back to 2017. That’s right – time series data, baby! You won’t find an analysis like this anywhere else.?

Senior Research Analyst Pranavi Agarwal finds that after a pandemic surge in direct bookings, third-party booking channels are back to being the leading source of hotel bookings, driven in part by the growth of B2B wholesalers. The average hotelier today is looking at a ~55/45 indirect/direct mix. Hoteliers tell us they hope to flip that and drive nearly 2/3rds of bookings directly. That is a lofty goal and one unlikely to be fully achieved, but it tells us which way the wind is blowing. Expect continued investment in direct channels in 2025 and beyond.

For those exhausted by the channel wars, perhaps a relaxing spa day is just what the doctor ordered. Our latest consumer travel trends report is The Wellness Travel Boom in 2024 and Beyond. We estimate that Americans spent $425B on wellness-related travel in 2024, which means you need to understand this important sector.?

Both incumbent and challenger brands are trying to position themselves as wellness experts. Six Senses and Miraval stand out in our brand work as having some of the highest consumer awareness. But the truth is, there's not one brand overwhelmingly dominating this market. And with two-thirds of travelers telling us they are likely to increase their spending on wellness travel over the coming year, the market is ripe for opportunity.

Rounding out another bumper issue is new research into How Authentic Experiences Share the New Tourism Economy. Wellness and authenticity complement each other as powerful trends shaping why consumers choose to travel, where they choose to go, and – bringing it full circle back to distribution –? how they choose to book travel.

That’s all from me for now. As always, don’t be a stranger. Let us know what you think of these reports and what you want to see more of. Drop me a note to let me know what Skift Research can do for you – [email protected].

Best,

Seth Borko

Head of Skift Research

Hospitality

Hotel Distribution Outlook 2024

Our proprietary survey of hoteliers shows that hotel distribution has been fairly evenly split between direct and indirect sources since it was first fielded in 2017. In 2019, pre-pandemic, indirect distribution accounted for 55% of hotel distribution mix, and direct 43%. In 2020, there was a shift to direct bookings, particularly offline channels such as phone calls and walk-ins, with travelers calling hotels directly to obtain information on COVID-19 restrictions, which were not as accurately reflected on third-party websites. In 2024, distribution mix has largely normalized back to pre-pandemic trendlines, with a shift back to indirect channels.?

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The Wellness Travel Boom in 2024 and Beyond: What You Need to Know

Americans traveling primary for the purpose of wellness generated $258 billion in the past 12 months. U.S. travelers who participated in wellness-related activities during trips generated $167 billion.

This report highlights emerging trends in wellness tourism, such as the rising demand for holistic wellness-focused experiences and accommodation offerings, as travelers increasingly prioritize?stress-reduction and health during their trips, along with the growing popularity of mental wellness and mindfulness retreats.

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How Authentic Experiences Shape the New Tourism Economy

You can’t go too far in travel industry circles without hearing that activities and experiences represent one of the biggest (and often untapped)?opportunities for multiple businesses?across the industry.?

Its potential should come as no surprise – going back to the 1980s, consumers, particularly in affluent countries, have shown an increasing preference for spending their money on experiences over possessions. Following an inevitable dip during the pandemic, this is rapidly rebounding.

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