The UK travel market posted a record £56.6 billion in gross bookings for 2025, according to Phocuswright’s latest UK Market Report. The figure reflects sustained consumer appetite for travel despite a softening macroeconomic backdrop, with online penetration hitting 90%.
Phocuswright managing director Pete Comeau noted that strong demand and weakening macro conditions are not mutually exclusive. “Right now the UK market has both,” he said, pointing to 44.7 million outbound trips by UK residents in the first half of 2025, even as GDP forecasts for 2026 were cut to 0.7%.
OTA Growth Slows as Supplier Direct Gains
Online travel agencies (OTAs) saw gross bookings rise to an all-time high of £10.3 billion in 2025, but their share of total bookings slipped from 22% in 2023 to 20% in 2025. Phocuswright projects a further decline to 19% by 2029. Meanwhile, supplier direct channels are expected to increase from 78% to 81% over the same period.
Three players dominate the UK OTA landscape: Booking Holdings commands 44% of OTA gross bookings, followed by Trainline at 23% and Expedia Group at 16%. OTA growth has decelerated sharply, from 27% in 2023 to just 3% in 2025.
The hotel segment remains a battleground, with supplier direct and OTA channels holding nearly equal shares at 35% and 32%, respectively. Phocuswright expects this balance to remain largely unchanged through 2029.
Potential Disruption from Great British Railways
A potential shift in the distribution model could come with the launch of Great British Railways in 2027. The new public body is set to centralise fare management and ticketing, which may challenge Trainline’s market position. Trainline currently holds a 23% share of OTA gross bookings, largely driven by rail ticketing.
The broader travel distribution landscape remains stable for now, but the rise of supplier direct channels and potential regulatory changes could reshape the competitive dynamics. For travel professionals, the data underscores the importance of direct booking strategies and the need to monitor OTA commission structures.
Phocuswright Europe 2026 will take place in Barcelona from 15 to 17 June, bringing together industry leaders to discuss trends shaping Europe’s travel economy. The event will cover topics ranging from distribution shifts to the impact of economic headwinds on travel demand.
For context on how other markets are navigating similar dynamics, see our coverage of Global Travel Demand Holds Firm in 2026 Despite Geopolitical and Economic Fault Lines and Western Travelers Drive Japan Hotel ADR to Record High as Chinese Demand Slips.
The UK market’s record performance comes amid a broader trend of resilient travel demand, even as economic uncertainty persists. For hoteliers, airlines, and tour operators, the data reinforces the value of investing in direct distribution and loyalty programmes to capture a larger share of bookings.
