Phocuswright has released its annual report, "Travel Forward: Data, Insights & Trends for 2026," sponsored by Travel Guard. The report offers a comprehensive analysis of the $1.67 trillion global travel market, projecting significant growth as international demand strengthens. Despite economic and geopolitical challenges, the travel sector is expected to contribute over $11.7 trillion to global GDP and support nearly 371 million jobs in 2026.
The report highlights the increasing role of digital adoption in reshaping the travel marketplace. Online bookings are anticipated to rise by 8% in 2025, reaching $1.07 trillion, with notable growth in the Asia Pacific region and expanding digital access in emerging markets. Online travel agencies (OTAs) are expected to generate $408 billion in bookings, maintaining a substantial share of global online spending.
A significant shift in traveller behaviour is also noted, with AI becoming a core tool for planning. By late 2025, 58% of active US travellers are using AI for various purposes, and 39% specifically for travel research or planning. Millennials are leading this transition, as generative platforms gain popularity over traditional search tools.
Stan Pawlow, Phocuswright data analyst and lead author of the report, emphasised the importance of understanding these evolving trends: "Each year, this report gives us the opportunity to step back and let the data reveal the real story of where travel is heading."
The report, available for free, covers a wide range of topics, including the impact of AI, corporate and consumer travel trends, and the dynamic short-term rental landscape. Phocuswright will host a webinar on 15 January 2026 to discuss the report's key findings.
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