Phocuswright recently released its latest report, “Travel Forward: Data, Insights and Trends for 2025.” This report offers a comprehensive look into the future of the global travel market, which is currently valued at $1.61 trillion. It provides critical data and trends that are essential for understanding the industry’s trajectory.
The report predicts continued growth in the global travel market through 2026, with annual gains expected to be between 6-9%. Online bookings are set to rise even faster, with annual increases predicted to be between 8-12%. The gross bookings are anticipated to grow from $1.6 trillion in 2024 to $1.72 trillion in 2025. This represents a steady but slower growth rate as the market matures.
Online gross bookings are projected to reach $1.0 trillion in 2024 and climb to $1.2 trillion by 2026. By then, nearly 65% of all global travel gross bookings will be conducted online. The report attributes this trend to increasing demands for digital convenience and efficiency in the travel industry.
Due to increasing capacity and declining airfares, airline revenue growth is expected to slow to 10% in 2024 and drop to single-digit growth in subsequent years.
Global online gross bookings for hotels are expected to represent 55% of the market in 2024, increasing to 58% by 2026.
Regionally, North America is anticipated to remain the largest contributor to gross bookings, growing from $543.8 billion in 2024 to $568.5 billion in 2025. Meanwhile, in 2025, the U.K. is projected to overtake France in gross bookings, regaining its place among the top five markets for the first time since the COVID-19 pandemic.
The report also provides insights into consumer behavior. Travelers are reportedly more confident about booking lodging in the next 12 months but are less certain about their transportation plans due to concerns about costs and discretionary spending. Most European travelers plan to engage in leisure travel in the next year, with many planning international trips. Approximately half of all travelers expect to use GenAI for leisure travel in the next 12 months.
The report emphasizes the importance of industry stakeholders continually enhancing their online offerings to meet the growing demand for digital convenience and efficiency in the travel market.
Discover more at Phocuswright.