Fully recovered and returning to growth, the global travel industry reached $1.6 trillion in gross bookings in 2024 and is on track to approach $1.8 trillion by 2027, according to Phocuswright’s latest travel research report, Global Travel Market Report 2025.
Fueled by digital adoption and steady leisure demand, this new era of travel is marked by structural transformation on multiple fronts. Yet growth is far from uniform: While established markets maintain their leads, emerging regions such as the Middle East and Latin America are rising fast. Together, these dynamics reflect an industry diversifying across markets, channels and consumer behaviors—creating both opportunities and challenges for stakeholders worldwide.
Global growth sustained
Travel gross bookings reached nearly $1.6 trillion in 2024 and are projected to climb to more than $1.8 trillion by 2027.
Digital acceleration holds
Online bookings grew 9% in 2024, lifting global digital penetration. By 2027, two thirds of all travel will be booked online.
Regional divergence
North America led with $539 billion in travel gross bookings in 2024, followed by Asia Pacific (APAC). Europe is the third largest market, supported by resilient intraregional travel. Emerging regions together will expand faster than mature markets in the forecast period.
Air and hotel dominate
Combined, the two segments account for nearly three quarters of global travel gross bookings.
Distribution divide
Suppliers led online bookings in 2024, but online travel agencies retain their edge in the hotel segment, where fragmentation favors intermediaries.
Shifting top markets
Within the top 15 markets, Mexico, Brazil and India are forecasted to deliver the strongest growth momentum through 2027.
Resilient demand
Inflation, tariffs and policy shifts have tempered sentiment, yet blended trips, value-seeking behavior and sustainability concerns continue to shape travel decisions.
Taken together, these forces point to steady but uneven expansion, with global gross bookings projected to grow an average of 5.2% annually through 2027. Travelers are proving they will keep moving, even in uncertain times, yet they’re also making sharper, more deliberate choices about where, how and why they travel.
The industry’s challenge—and opportunity—lies in adapting quickly enough to capture this next phase of growth.
Phocuswright’s Global Travel Market Report 2025
This report provides comprehensive market sizing and projections from 2021-2027, including analysis of key segments, trends and distribution dynamics for six regions: North America (U.S. and Canada), APAC, Europe, the Middle East, Latin America and Eastern Europe.