Travel trade enters 2026 with regular momentum: Data insights

Phocuswright’s Travel Forward: Data, Insights & Trends for 2026 reveals the worldwide journey trade coming into the yr with regular momentum, with complete gross bookings projected to achieve roughly $1.67 trillion in 2025 as worldwide demand strengthens and vacationers proceed to prioritize experiences regardless of financial and geopolitical pressures.

Digital adoption stays a defining power, with on-line bookings and synthetic intelligence (AI)-enabled planning reshaping how vacationers analysis and buy their journeys. 

Decision-makers throughout all journey segments want knowledgeable insights that dig deeper into client habits, buying and reserving traits, the evolution of AI instruments, modifications in market sizing and the broader forces reshaping journey. 

Phocuswright compiled dozens of knowledge factors, traits and key findings from Travel Forward 2026 to assist the trade make higher selections. Here are crucial factors positive to dominate discussions as journey navigates its subsequent pivotal second in a technology-laden trajectory. 

The state of the market 

Global journey development has normalized.

• Global gross bookings reached roughly $1.67 trillion, signaling continued development however at a extra measured tempo because the market matures. 

Demand stays resilient below stress.

• Despite inflation and geopolitical uncertainty, journey spending continues to rise, reflecting sustained client prioritization of journey. 

Asia Pacific (APAC) stays the expansion engine.

• APAC continues to guide international journey development, accounting for the most important share of incremental bookings coming into 2026. 

Emerging areas are gaining affect.

• Latin America and the Middle East are rising sooner than mature markets, growing their share of worldwide journey spend. 

How vacationers plan and e book 

Online bookings proceed to outpace the overall market.

• Online journey bookings surpassed $1 trillion, rising sooner than offline channels throughout all main areas. 

Digital adoption is deepest in fast-growing markets.

• APAC now accounts for over one-third of worldwide on-line journey company (OTA) gross sales, reflecting fast digital penetration. 

Search is not the singular entry level.

• The share of vacationers beginning journey planning with conventional search has declined sharply yr over yr. 

Social platforms play a rising position in journey analysis. 

• Use of social media for journey planning elevated yr over yr, particularly amongst youthful vacationers. 

AI has entered the mainstream.

• 58% of lively U.S. vacationers report utilizing AI for at the least one objective, marking a shift from novelty to normalcy. 

Travel planning is AI’s main use case.

• 39% p.c of vacationers have used AI particularly for journey analysis or planning.  

Interest in AI reserving is rising sooner than adoption.

• Between 25% and 33% of vacationers specific curiosity in AI-enabled reserving instruments, although transactional use stays early. 

Digital identification is vital to AI-driven commerce.

• Hundreds of tens of millions of vacationers are anticipated to undertake digital identification wallets by 2026, enabling safer and automatic reserving experiences.  

Distribution and competitors 

OTAs stay central to international journey distribution.

• OTAs generated roughly $408 billion in gross bookings, sustaining a dominant position regardless of provider pushback. 

OTA penetration varies dramatically by market.

• In India, OTAs account for greater than half of all on-line journey bookings, far exceeding mature markets. 

Direct bookings are holding regular in North America and Europe.

• Supplier-direct channels proceed to outperform OTAs in choose mature markets by loyalty and app-based engagement.

Accommodation competitors is totally cross-category.

• Hotels and short-term leases more and more compete for a similar traveler throughout the identical reserving journey. 

Consumer habits and loyalty 

Travel loyalty is more and more situational.

• Travelers keep a number of most well-liked manufacturers moderately than counting on a single main supplier. 

Trust issues greater than rewards alone.

• Repeat reserving habits correlates extra strongly with familiarity and reliability than with factors accumulation. 

High-value vacationers drive outsized impression.

• Luxury and “indulgent explorer” segments symbolize a disproportionate share of complete journey spend. 

Luxury vacationers mix digital instruments with professional assist.

• High-spend vacationers actively use digital platforms whereas nonetheless counting on human experience for advanced journeys. 

Corporate journey and operations 

Corporate journey insurance policies stay extensively used.

• Approximately 63% of enterprise vacationers e book inside managed journey packages. 

Out-of-policy reserving persists.

• Roughly 20% of company bookings happen exterior formal journey insurance policies. 

AI is reshaping company journey behind the scenes.

• AI adoption is accelerating throughout expense administration, compliance and journey optimization. 

Technology, funding and execution 

AI is now desk stakes for journey startups.

• More than 80% of journey startups report significant AI adoption. 

AI delivers measurable worth.

• The majority of firms utilizing AI report optimistic impacts on effectivity, decision-making or buyer expertise. 

2026 is about execution, not experimentation.

• With funding tighter than in prior years, firms that reveal clear unit economics and scalable use of knowledge are finest positioned to win.