Published on
November 4, 2025
By: Tuhin Sarkar
The travel industry is expected to surpass the global economy’s growth rate over the next decade, with annual growth projected at 3.5%, compared to the global economy’s 2.5% growth. This was revealed in the latest World Travel Market (WTM) Global Travel Report, released on 4th November, marking the beginning of WTM London. According to the report, by 2035, the global travel industry will generate more than $16 trillion, contributing nearly 12% to the global GDP. With international arrivals projected to exceed 1.5 billion by the end of 2025, the travel sector is reaching new heights.
Optimistic Projections for the Future of Travel
In the WTM Global Travel Report, analysts projected that the global travel industry will see tremendous growth, outpacing the broader economy in the coming years. The travel market is on track to achieve an annual growth rate of 3.5% over the next decade, far exceeding the 2.5% expected for the global economy. These projections are set against a backdrop of record-breaking international travel in 2025, with arrivals forecasted to top 1.5 billion, surpassing the record set in 2019.
By 2035, the global travel sector is poised to generate over $16 trillion, which would account for nearly 12% of the world’s GDP. These optimistic growth projections highlight the ongoing transformation of the travel industry, driven by increasing global mobility and evolving consumer behaviours.
Drivers Behind Travel Growth
The report identifies several key factors contributing to the rapid expansion of the travel industry. One primary driver is the growing number of travellers venturing to more distant destinations and booking longer stays. Emerging markets, particularly in the Asia Pacific region, are expected to see continued economic growth, fuelling demand for international travel.
Furthermore, as consumer spending habits evolve, more individuals are prioritising travel, allocating a significant portion of their budgets towards experiences over material goods. The shift towards experiential consumption, including live events, has further bolstered the travel sector. The rise in popularity of live concerts, exemplified by major tours like Taylor Swift’s Eras Tour, is an indicator of how cultural events are reshaping the travel landscape.
New Travel Trends and Changing Consumer Behaviours
Tourists are increasingly choosing to travel off the beaten path, with many opting for trips during shoulder seasons to avoid the heat of peak summer months. The report notes a rise in the ‘coolcations’ trend, where northern destinations like Sweden, Norway, and Finland are projected to see an influx of travellers. This trend aligns with the growing interest in visiting cooler, less traditional summer hotspots.
In parallel, bucket list destinations continue to remain popular as travellers seek iconic, must-see locations. These destinations benefit greatly from the power of social media, which continues to influence travel choices. Destinations such as Iceland and Machu Picchu still enjoy strong attention, with social platforms playing a pivotal role in promoting their appeal to a global audience.
The Role of Sustainability in Travel’s Future
Sustainability remains a key concern for the travel industry, with environmental impact coming under increased scrutiny. Despite growing awareness, consumers remain resistant to paying higher prices for eco-friendly options. This resistance presents a challenge for the industry, as the funds required to modernise and implement sustainable practices may be harder to secure in a price-sensitive environment.
Nevertheless, the push towards sustainability is expected to drive innovation within the sector, as destinations, airlines, and hotel chains strive to meet both consumer expectations and regulatory demands. The transition towards greener practices, while challenging, will likely shape the future of travel in ways that balance economic growth with environmental responsibility.
Expansion in Aviation, Cruise, and Accommodation Sectors
The aviation, cruise, and accommodation sectors are all poised for significant expansion, as indicated in the report. Over 15,000 new aircraft are currently on order with major manufacturers Boeing and Airbus, signaling a robust future for air travel. Meanwhile, the global cruise industry is on track to expand by nearly 6% in 2025, further contributing to the industry’s growth.
The hotel sector is similarly thriving, with more than 500,000 new hotel rooms set to open in 2025, with an additional one million rooms under construction in the following years. This massive expansion in infrastructure is reflective of the industry’s booming demand, as both established and emerging destinations look to accommodate the influx of travellers.
Digital Platforms and AI as Growth Drivers
In today’s travel landscape, digital platforms are playing an increasingly central role. Social media, online travel agents, and review sites are more popular than ever, driving increased engagement and bookings. Furthermore, artificial intelligence (AI) has become a major force within the industry, with many travel professionals recognising its potential to increase overall spending in the sector. The report highlights that AI tools are expected to help enhance customer experiences and streamline operational efficiency, contributing to the growth of the travel market.
As AI tools become more integrated into the travel ecosystem, they will likely play a pivotal role in reshaping how consumers interact with the industry, from personalised recommendations to smarter travel planning.
Concerns About Economic and Geopolitical Headwinds
Despite the optimistic growth projections, the report also acknowledges potential challenges that could impact the travel industry’s trajectory. Economic and geopolitical uncertainties are significant risks, particularly in the wake of trade tariffs and political instability. The imposition of trade tariffs during the Trump administration, for example, has added to the cost of doing business for many players in the sector.
Moreover, the industry continues to face a skills shortage, which could limit growth in key areas such as customer service, aviation, and hospitality. The report suggests that addressing these issues will be critical for the industry to maintain its growth momentum.
Regional Outlook: North America Faces Challenges
While the outlook for global travel is positive, the report notes that the immediate outlook for North America is less promising. Inbound arrivals to the United States are expected to decrease by 6% in 2025, meaning that it will take several years before the country sees a return to the record levels of 2019. This dip in arrivals is a notable concern for the region, with experts suggesting that the recovery to pre-pandemic levels might not occur until 2029.
However, despite these challenges, the overall global outlook remains strong. Emerging markets and other regions are expected to continue to drive growth, with opportunities for expansion in several key areas.
Conclusion: WTM London’s Role in Shaping the Future of Travel
Chris Carter-Chapman, the Event Director of WTM London, emphasised the importance of this year’s event in navigating the rapidly evolving travel landscape. The WTM Global Travel Report provides essential insights for industry professionals as they look to capitalise on the opportunities and overcome the challenges in the sector.
As the global travel industry continues to reach new heights, WTM London serves as a critical platform for networking, knowledge-sharing, and business deals. With travel set to outpace global economic growth, the industry’s trajectory is incredibly promising, but it will require strategic planning, innovation, and adaptability to ensure long-term success.
