According to the report, the global travel industry enters 2026 with steady momentum. Total gross bookings are projected to reach $1.67 trillion as international demand continues to strengthen and travelers prioritize experiences despite ongoing economic and geopolitical pressures. Travel and tourism is expected to contribute more than $11.7 trillion to global GDP in 2026 and support nearly 371 million jobs worldwide, highlighting the sector’s resilience even as growth trajectories differ across regions.
“Each year, this report gives us the opportunity to step back and let the data reveal the real story of where travel is heading,” said Stan Pawlow, Phocuswright data analyst and lead author of the report. “We’re inspired by what emerges: a market that remains robust and full of momentum, but also one that is evolving in ways that deserve attention. That nuance is important.”
Digital transformation remains a defining trend across the travel ecosystem. Online bookings are projected to increase by 8% in 2025, reaching $1.07 trillion, driven by strong performance in Asia Pacific and expanding digital access in emerging markets. Online travel agencies are forecast to generate $408 billion in bookings, retaining a significant share of global online spend as consumers continue shifting travel planning and purchasing into digital channels.
At the same time, traveler behavior is evolving rapidly as artificial intelligence becomes embedded in the planning process. By late 2025, 58% of active U.S. travelers report using AI for some purpose, while 39% specifically use AI tools for travel research or planning. Millennials are leading this shift as generative AI platforms gain adoption and traditional search tools begin to lose relevance, signaling a structural change in how travelers evaluate options and make booking decisions.
“Our role as researchers is to surface these changes clearly and objectively so the industry can make smarter decisions,” added David Juman, Vice President, editorial & market sizing at Phocuswright. “Bringing all of our strongest data and analysis together and making it accessible to everyone is one of the most impactful ways we can help the businesses that shape travel’s future.”
Travel Forward: Data, Insights & Trends for 2026, sponsored by Travel Guard, covers a wide range of topics expected to influence the global travel industry in 2026 and beyond. These include global and regional market sizing, key travel segments, the evolving short-term rental landscape, the expanding role of AI, corporate and consumer travel trends, as well as developments in loyalty and luxury travel. To further explore the findings, Phocuswright analysts will host a webinar on January 15, 2026, focused on the report’s essential insights and key conclusions.
Tags: Stan Pawlow, Phocuswright David Juman