Published on
December 13, 2025
The global travel market is on track to surpass one trillion dollars by 2026, driven by the rapid growth of digital adoption, the widespread integration of AI, and the increasing influence of emerging markets. These powerful trends are reshaping how people travel, with Asia Pacific, Europe, and other regions experiencing significant growth. As travelers seek more personalized, tech-driven experiences, digital adoption continues to accelerate, enabling easier and more efficient travel planning. At the same time, AI integration is transforming how bookings are made and how decisions are driven, making it a core part of the travel planning process.
The emergence of new markets, particularly in Asia Pacific and other developing regions, is further contributing to the growth of the industry. Together, these factors position the global travel market for substantial growth, with one trillion dollars on the horizon in 2026.
Phocuswright, a leading research firm in the travel and tourism space, has once again provided invaluable insights, utilizing interactive charts and visuals to highlight the trends and behaviors that will define the travel landscape in 2026. With this annual report, Phocuswright aims to offer a comprehensive view of the evolving global travel market, including the economic, geopolitical, and technological factors that will influence travelers’ decisions in the coming year.
Global Travel Market to Reach $1.67 Trillion in 2026
The global travel industry enters 2026 with remarkable resilience, despite facing ongoing economic and geopolitical uncertainties. Phocuswright forecasts that total gross bookings for the year will hit $1.67 trillion, a clear indication of the sector’s robustness. This growth is largely driven by a strengthening demand for international travel and a growing desire among travelers to prioritize experiences over material goods, even amid mounting financial pressures.
Phocuswright’s report also highlights that travel and tourism is expected to contribute more than $11.7 trillion to the global GDP in 2026, supporting nearly 371 million jobs worldwide. These figures underscore the enduring importance of the travel sector, particularly as it continues to evolve and adapt to shifting consumer preferences and market dynamics.
In an era marked by fluctuating economic conditions, the travel industry’s ability to thrive is an impressive testament to its ongoing strength. Despite varying growth patterns across different regions, the sector remains poised for further expansion, with emerging markets playing a critical role in this trajectory.
Key Drivers of Travel Growth in 2026
Phocuswright’s report delves into several key drivers of travel growth, with technological advances, changing traveler behavior, and regional shifts standing out as the most influential factors.
Digital Adoption Continues to Accelerate
One of the most significant trends impacting the travel market is the continued rise of digital adoption. Phocuswright’s research indicates that online bookings are expected to grow by 8% in 2025, reaching $1.07 trillion. This growth will be fueled by a surge in demand from Asia Pacific and the increased digital accessibility in emerging regions. Online travel agencies (OTAs) are also set to generate $408 billion in bookings, holding a substantial share of the global online spend. Consumers’ increasing reliance on digital channels to book their travel experiences is reshaping the market, making it easier for travelers to plan and purchase trips with a few clicks.
AI as a Core Tool for Travel Planning
Another notable shift identified in the report is the growing role of artificial intelligence (AI) in travel planning. By late 2025, 58% of U.S. travelers are expected to use AI for various purposes, with 39% specifically turning to AI for travel research and planning. This trend is being spearheaded by Millennials, who are increasingly adopting generative AI platforms in their travel decisions. As AI technology continues to evolve, traditional search tools are losing their relevance, giving way to more personalized and intelligent travel planning solutions.
The use of AI in travel research is part of a broader shift towards technology-driven decision-making. Travelers are now able to access tailored recommendations, enhanced booking experiences, and predictive insights about their destinations, making the entire travel experience more efficient and satisfying.
Traveler Behavior Evolution: From Search Engines to AI Platforms
The shift from traditional search tools to AI-powered travel platforms marks a fundamental transformation in how travelers evaluate options and make decisions. Millennials are leading this change, as they embrace generative platforms that help them discover new destinations, plan itineraries, and make reservations more effectively. As this trend expands, businesses within the travel industry are adapting their strategies to leverage AI and machine learning technologies, providing customers with highly personalized and dynamic travel experiences.
The adoption of AI reflects a broader trend in which travelers are increasingly seeking customized, seamless, and technology-driven solutions. This shift also highlights the growing importance of data analytics, as businesses that can harness this data will have a significant advantage in delivering personalized experiences and recommendations.
Impact of Geopolitical Factors on Global Travel Trends
Phocuswright’s report also touches on the geopolitical factors that are likely to influence travel in 2026. While geopolitical uncertainties and economic pressures continue to challenge the global landscape, travel demand remains strong. According to the report, geopolitical events such as trade tensions, political instability, and climate change are expected to have localized impacts, affecting traveler preferences and behaviors in specific regions. However, despite these challenges, the resilience of the travel industry continues to shine through.
Phocuswright’s analysis reveals that the effects of these geopolitical factors will vary by region, with some areas seeing a stronger demand for tourism and others facing declines. Understanding these regional variations will be crucial for businesses as they navigate the complex global travel market in the year ahead.
Regional Highlights: Asia Pacific and Emerging Markets Lead Growth
In terms of regional trends, the Asia Pacific region is expected to experience the most significant growth in 2026, driven by expanding digital access and a growing middle class. Emerging markets in Africa, Latin America, and the Middle East will also play a critical role in global travel growth, as more consumers in these regions gain access to travel opportunities. As these markets evolve, they will continue to influence the overall dynamics of the travel industry, contributing to its continued expansion.
In addition to these regions, the luxury travel segment is expected to remain strong, with affluent consumers continuing to seek unique and high-end experiences. Meanwhile, the short-term rental landscape remains dynamic, with new players entering the market and driving competition among platforms such as Airbnb and Vrbo.
Corporate and Consumer Travel Trends
Corporate travel is expected to experience steady growth in 2026, although business travel patterns may evolve in response to changing work dynamics and corporate policies. More businesses are embracing remote and hybrid work models, which may result in fewer traditional business trips. However, the demand for in-person meetings, conferences, and incentive travel remains robust, particularly as organizations look to foster employee engagement and strengthen partnerships.
Meanwhile, consumer travel trends are also shifting, with many travelers focusing on sustainability, eco-friendly practices, and socially responsible travel. This growing emphasis on sustainability is expected to continue shaping consumer preferences, with more travelers seeking destinations and experiences that align with their values.
The Future of Travel Remains Bright Despite Challenges
As the global travel industry heads into 2026, the outlook remains optimistic. Phocuswright’s Travel Forward: Data, Insights & Trends for 2026 provides a clear, data-driven view of a market that is evolving, resilient, and poised for continued growth. While challenges remain, including geopolitical uncertainties and economic pressures, the demand for travel experiences is set to remain strong.
Travel businesses that can adapt to these evolving trends, particularly those embracing digital technologies, AI, and sustainability, will be well-positioned for success in the coming year. As consumers continue to seek out personalized, experience-driven travel, the industry is primed to deliver innovative solutions that meet these needs.
