The future shows strong growth for the travel industry, according to the new Travel Forward 2025 report released by travel research firm Phocuswright. (Editor’s Note: Phocuswright is owned by Northstar Travel Group, the parent company of TravelAge West.)
The report indicates that global gross bookings will grow to $1.61 trillion in 2024 before climbing to $1.72 trillion in 2025, with annual growth rates between 6-9% through 2026. Online travel bookings are expected to reach $1.2 trillion by 2026, accounting for nearly 65% of all travel purchases worldwide.
Here are a few more highlights from the report.
North America Leads the Way in Bookings
North America continues to lead global markets, with gross bookings expected to reach $543.8 billion in 2024 and $568.5 billion in 2025. In Europe, the United Kingdom is poised to surpass France in 2025, returning to the top five global markets for the first time since the pandemic.
Airlines Will See Slower Revenue Growth
The report also reveals that airlines can expect slower revenue growth, dropping to 10% in 2024 and single digits in subsequent years, influenced by increasing capacity and declining airfares. For hotels, online gross bookings are forecast to represent 55% of the market in 2024, rising to 58% by 2026.
Consumers Still Rely on Friends and Family for Trip Planning
Consumer behavior data shows that travelers still rely heavily on recommendations from friends and family (58%) for trip planning, followed by general search engines (51%) and online travel agencies, or OTAs (41%). While OTAs remain the preferred booking channel for hotels, direct airline bookings have decreased to levels matching OTA usage.
Read the full report on Phocuswright.
Editor’s Note: This article was generated by AI, based on Phocuswright’s Travel Forward 2025 report. It has been fact-checked and reviewed by a TravelAge West editor.
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