Phocuswright’s Travel Forward: Data, Insights & Trends for 2026 shows the global travel industry entering the year with steady momentum, with total gross bookings projected to reach approximately $1.67 trillion in 2025 as international demand strengthens and travelers continue to prioritize experiences despite economic and geopolitical pressures.
Digital adoption remains a defining force, with online bookings and artificial intelligence (AI)-enabled planning reshaping how travelers research and purchase their trips.
Decision-makers across all travel segments need informed insights that dig deeper into consumer behavior, shopping and booking trends, the evolution of AI tools, changes in market sizing and the broader forces reshaping travel.
Phocuswright compiled dozens of data points, trends and key findings from Travel Forward 2026 to help the industry make better decisions. Here are the most important points sure to dominate discussions as travel navigates its next pivotal moment in a technology-laden trajectory.
The state of the market
Global travel growth has normalized.
- Global gross bookings reached approximately $1.67 trillion, signaling continued growth but at a more measured pace as the market matures.
Demand remains resilient under pressure.
- Despite inflation and geopolitical uncertainty, travel spending continues to rise, reflecting sustained consumer prioritization of travel.
Asia Pacific (APAC) remains the growth engine.
- APAC continues to lead global travel growth, accounting for the largest share of incremental bookings entering 2026.
Emerging regions are gaining influence.
- Latin America and the Middle East are growing faster than mature markets, increasing their share of global travel spend.
How travelers plan and book
Online bookings continue to outpace the total market.
- Online travel bookings surpassed $1 trillion, growing faster than offline channels across all major regions.
Digital adoption is deepest in fast-growing markets.
- APAC now accounts for over one-third of global online travel agency (OTA) sales, reflecting rapid digital penetration.
Search is no longer the singular entry point.
- The share of travelers starting trip planning with traditional search has declined sharply year over year.
Social platforms play a growing role in trip research.
- Use of social media for travel planning increased year over year, especially among younger travelers.
AI has entered the mainstream.
- 58% of active U.S. travelers report using AI for at least one purpose, marking a shift from novelty to normalcy.
Travel planning is AI’s primary use case.
- 39% percent of travelers have used AI specifically for travel research or planning.
Interest in AI booking is growing faster than adoption.
- Between 25% and 33% of travelers express interest in AI-enabled booking tools, though transactional use remains early.
Digital identity is critical to AI-driven commerce.
- Hundreds of millions of travelers are expected to adopt digital identity wallets by 2026, enabling more secure and automated booking experiences.
Distribution and competition
OTAs remain central to global travel distribution.
- OTAs generated approximately $408 billion in gross bookings, maintaining a dominant role despite supplier pushback.
OTA penetration varies dramatically by market.
- In India, OTAs account for more than half of all online travel bookings, far exceeding mature markets.
Direct bookings are holding steady in North America and Europe.
- Supplier-direct channels continue to outperform OTAs in select mature markets through loyalty and app-based engagement.
Accommodation competition is fully cross-category.
- Hotels and short-term rentals increasingly compete for the same traveler within the same booking journey.
Consumer behavior and loyalty
Travel loyalty is increasingly situational.
- Travelers maintain multiple preferred brands rather than relying on a single primary provider.
Trust matters more than rewards alone.
- Repeat booking behavior correlates more strongly with familiarity and reliability than with points accumulation.
High-value travelers drive outsized impact.
- Luxury and “indulgent explorer” segments represent a disproportionate share of total travel spend.
Luxury travelers blend digital tools with expert help.
- High-spend travelers actively use digital platforms while still relying on human expertise for complex trips.
Corporate travel and operations
Corporate travel policies remain widely used.
- Approximately 63% of business travelers book within managed travel programs.
Out-of-policy booking persists.
- Roughly 20% of corporate bookings occur outside formal travel policies.
AI is reshaping corporate travel behind the scenes.
- AI adoption is accelerating across expense management, compliance and trip optimization.
Technology, investment and execution
AI is now table stakes for travel startups.
- More than 80% of travel startups report meaningful AI adoption.
AI delivers measurable value.
- The majority of companies using AI report positive impacts on efficiency, decision-making or customer experience.
2026 is about execution, not experimentation.
- With funding tighter than in prior years, companies that demonstrate clear unit economics and scalable use of data are best positioned to win.
Travel Forward: Data, Insights & Trends for 2026
Join Phocuswright on January 15 for a webinar unpacking the essentials from this report.