In a world that occasionally feels like it has tipped upside-down, it is strangely reassuring to find a sector that still marches forward with something resembling old-fashioned determination. Travel, that great global barometer of sentiment, ambition and disposable income, has once again dug in its heels. According to Phocuswright’s newly released year-end analysis, Travel Forward: Data, Insights & Trends for 2026, the global travel market is standing tall at a projected US$1.67 trillion in gross bookings.

Not bad for an industry that has stared down everything from geopolitical jitters to the price of a flat white creeping northward.

The report, sponsored by Travel Guard and offered gratis to anyone with a stake in tourism’s future, offers an elegant sweep of data through interactive charts, visualisations and market intelligence. It underscores a somewhat comforting truth: travel remains one of the world’s most resilient economic pillars. Phocuswright estimates that the sector will contribute more than US$11.7 trillion to global GDP this year and support 371 million jobs — a statistic that should soothe policymakers and inspire mild envy in every other industry.

“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. “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.”

Nuance indeed. While the headline numbers may exude confidence, the underlying shifts tell an even more compelling tale, one driven by technology, changing consumer expectations and the unmistakable rise of the algorithm as travel agent.

Digital acceleration and the rise of AI travellers

Digital adoption is now less a trend and more a foundational habit. Online bookings are forecast to climb 8% in 2025 to reach US$1.07 trillion, with Asia Pacific leading the charge. Online travel agencies (OTAs), often described as either outdated or unstoppable, depending on who you ask, remain firmly in the game, poised to generate US$408 billion in bookings.

But the real disruptor — and the one likely to unsettle traditional search engines far more than another OTA loyalty program is AI-driven travel planning. By late 2025, Phocuswright finds that 58% of active U.S. travellers will use AI for something, and 39% will rely on it specifically for travel research or planning. Millennials, in particular, seem more than happy to let machines shoulder the hard work of sifting through timetables, price calendars and accommodation reviews.

It may not be the death of the guidebook, but it is undoubtedly a moment of reckoning.

“Our role as researchers is to surface these changes clearly and objectively so the industry can make smarter decisions,” added David Juman, Phocuswright’s vice president, editorial & market sizing. “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.”

A roadmap for 2026 and beyond

The 2026 edition of Travel Forward does not merely recap the year gone by; it acts as something of a compass for an industry bracing for continuous evolution. The report covers:

• Global and regional market sizing

• The shifting short-term rental landscape

• AI’s wide-ranging influence across distribution, marketing and decision-making

• Corporate and consumer travel trends

• Loyalty, luxury and the post-pandemic traveller psyche

The report is available at no cost, a refreshing rarity in an age when even carry-on luggage attracts a surcharge. Industry professionals can access it directly via Phocuswright, with a companion webinar scheduled for 15 January 2026 to unpack the key insights. Registration details are available through Phocuswright’s official site: https://www.phocuswright.com.

For those craving deeper intelligence, long-term forecasts, competitive benchmarking, or the joy of losing an afternoon in data visualisation, Phocuswright’s Open Access subscription and Phocal Point tool offer a broader analytical library.

In a sector that thrives on movement, ambition and the perennial desire to find a better view, Phocuswright’s latest report confirms what many suspected: travel’s engine remains well-oiled, and 2026 is shaping up to be anything but sedentary.

by Christine Nguyen – (c) 2025

Read Time: 4 minutes.

About the Writer

Christine’s journey is one of quiet courage and unmistakable grace. Arriving in Australia as a young refugee from Vietnam, she built a new life in Sydney brick by brick, armed with little more than hope, family, and a fierce curiosity about the wider world. She studied Tourism at TAFE and found her calling in inbound travel, working with one of Sydney’s leading Destination Management Companies—where she delighted in showing visitors the real Australia, the one beyond postcards and clichés.

Years later, when the call of the sea and a gentler pace of life grew stronger, Christine and her family made their own great escape. She turned her creative hand to designing travel brochures and writing blogs, discovering that storytelling was as natural to her as breathing. Today, she brings that same warmth and worldly insight to Global Travel Media, telling stories that remind us why we travel in the first place.

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