UK Travel Market Hits £53.5B as Mobile Surges

The United Kingdom’s travel industry reached £53.5 billion in gross bookings in 2024, marking a 7% increase year over year, according to Phocuswright’s U.K. Travel Market Essentials 2025 report. The market continues to show strength despite expectations that growth will slow to around 5% annually from 2026. Much of the sector’s resilience is being driven by rapid digital adoption, with online bookings making up 88% of the total and projected to reach 90% by 2027.

Mobile is quickly becoming the dominant channel for travel bookings in the UK. In 2024, mobile accounted for 46% of online gross bookings and is expected to surpass desktop by 2026. Sectors like car rental and rail are already seeing more than 60% of their supplier-direct bookings through mobile platforms. This shift is prompting widespread investment in mobile-native technology, from AI-powered flight search tools to contactless hotel check-in and booking functionality.

Direct supplier channels continue to lead the market, generating nearly 80% of online travel bookings. While online travel agencies remain significant players, their growth is being outpaced by suppliers’ direct platforms, thanks to improved user experiences and loyalty incentives.

The UK government is also playing a significant role in reshaping travel infrastructure. Plans are underway to consolidate train services under a new public sector entity, Great British Railways, which is expected to improve efficiency and reliability in domestic rail travel. Rail is becoming an increasingly attractive option for travelers, aided by both public investment and a renewed policy focus on sustainability.

In the aviation sector, new regulations rolled out in 2025 mandate the gradual adoption of sustainable aviation fuel (SAF). While the shift supports long-term environmental goals, the fuel currently costs up to five times more than traditional jet fuel, creating financial pressure for airlines. Limited supply of SAF further complicates the transition and may lead to increased fares or operational constraints for carriers operating in the UK.

Despite these regulatory and cost challenges, the UK travel market continues to benefit from a stable economic environment and rising consumer confidence. Demand for travel remains high, and digital innovation is helping travel providers meet evolving customer expectations. The UK now stands as one of the most mobile-forward and digitally mature travel markets in Europe.

The ongoing convergence of mobile technology, government-led infrastructure initiatives and sustainability efforts is expected to define the next phase of growth for the UK travel industry. Providers that can adapt quickly to mobile-first behavior and environmental policy changes are likely to maintain a competitive edge in this evolving landscape.

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UK Travel Market Hits £53.5B as Mobile Surges

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