Phocuswright Forecast: 2026 Global Travel Market to Reach $1.67 Trillion

Phocuswright has released its annual year-end and year-ahead report, Travel Forward: Data, Insights & Trends for 2026, providing a data-driven view of the global travel market.

The report found that the worldwide travel industry is entering 2026 with steady momentum, with total gross bookings projected to reach $1.67 trillion as international demand strengthens and travelers continue to prioritize experiences despite economic and geopolitical pressures. 

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.

Travel and tourism is expected to generate $11.7 trillion toward global GDP and support nearly 371 million jobs, underscoring the sector’s enduring resilience.

Digital maturity now defines the next phase of short-term rental (STR) growth, as online bookings near $190 billion in 2025. STR usage among U.S. leisure travelers is stable at 24%, with guest satisfaction on par with hotels and 61% of STR guests taking “workcation” trips.

Traveler Behavior

Traveler behavior is also rapidly evolving. More than half (58%) of active U.S. travelers report using artificial intelligence (AI) for something, and 39% are using it specifically for travel research and planning. Millennials are at the forefront: 58% have leaned on AI to cut through information overload, compared to 45% of Gen Z and 11% of baby boomers.

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Loyalty and Luxury

Phocuswright’s report also finds that while travelers are joining more loyalty programs and redeeming more often, they increasingly define loyalty with long-term use and consistency. In the luxury space, travel is characterized by travelers who spend more, travel more and approach each trip with elevated expectations. Notably, 78% say that they “want to travel as much of the world as possible in my lifetime.”

Online Travel Agencies

Online travel agencies remain strong in lodging, modest in air and less significant in cruise and rail. They are projected to generate $408 billion in bookings in 2025 and maintain a strong foothold in emerging markets, with Asia-Pacific leading and Eastern Europe close behind.

Travel Advisors

Amid rising bookings and renewed demand for travel, advisors are uniquely positioned in the coming year to support travelers more than ever. Phocuswright’s data says that high-spend travelers lean heavily on expert guidance, and advisors remain integral to decision-making and booking patterns.

RELATED: Why Luxury Travelers With $25K+ Budgets Are Turning to Travel Advisors

Travelers frequently turn to travel advisors to navigate complex itineraries, secure premium inventory and ensure a seamless planning experience.

Other recent reports support Phocuswright’s outlook, including the United States Tour Operators Association’s annual survey, which found that 90% of tour operators plan to work with travel advisors in 2026, and 78% say the role of advisors will be very important to their business strategy next year.

“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.”