Travel Trends 2025: Key Insights Shaping the Future of the Industry

21.01.2025 - 22:47 / travelpulse.com / Laurie Baratti

A new report by Phocuswright, Travel Forward: Data, Insights and Trends for 2025, offers a comprehensive look into the ever-evolving $1.61 trillion global travel market. This resource, accessible to all, explores key metrics across various segments, channels, and consumer behaviors, providing vital insights for industry stakeholders. From growth projections to shifts in consumer behavior, the report highlights crucial trends set to shape the travel landscape in the coming years. 

Here are ten key takeaways for 2025:

1. Sustained Growth in the Travel Industry
The global travel sector is expected to see consistent annual growth rates of six to nine percent through 2026. Online bookings are poised to outpace the broader market, expanding at an even faster rate of eight to 12 percent annually.

2. Market Expansion Continues
Global gross travel bookings are projected to rise from $1.6 trillion in 2024 to $1.72 trillion in 2025, reflecting steady, albeit slower, growth as the market matures. 

3. Online Bookings Lead the Charge
Online gross bookings are forecasted to grow from $1.0 trillion in 2024 to $1.2 trillion by 2026. By then, nearly 65 percent of all travel bookings worldwide will be made online, underscoring the importance of digital strategies for travel businesses.

4. Slower Airline Revenue Growth Ahead
While airline revenues are projected to grow by 10 percent in 2024, increasing capacities and falling airfare prices are expected to temper growth, leading to single-digit gains in the following years.

5. Hotels Must Embrace the Digital Shift
Online hotel bookings are predicted to have comprised 55 percent of the market in 2024 and climb to 58 percent by 2026. With digital convenience and efficiency continuing to be a priority for consumers, hoteliers must strive to keep enhancing their online offerings.

6. North America Leads Regional Bookings
North America remains the largest contributor to global travel bookings, with figures expected to grow from $543.8 billion in 2024 to $568.5 billion in 2025. However, the region is approaching a growth plateau as it nears maturity in online travel.

7. The UK Makes a Comeback
For the first time since the pandemic, the United Kingdom (UK) is poised to surpass France in gross travel bookings in 2025, retaking a position among the top five global markets.

8. Lodging Outpaces Transportation Confidence
Travelers are expressing greater confidence in booking accommodations over the next year. However, uncertainties surrounding costs and discretionary spending are giving consumers pause when it comes to securing transportation.

9. Europe’s Leisure Travel Outlook
A majority of European travelers plan to pursue leisure travel in the coming year, with international trips outpacing domestic