Global Travel Market to Reach $1.8T by 2027 as Digital Demand Grows

The global travel industry has fully recovered and returned to sustained growth, surpassing $1.6 trillion in gross bookings in 2024 and projected to approach $1.8 trillion by 2027, according to Phocuswright’s Global Travel Market Report 2025. Growth is being driven by continued leisure demand and accelerated digital adoption, reshaping how travelers plan, book, and experience their journeys.

While mature markets remain dominant, the industry is increasingly diversified. North America led with $539 billion in gross bookings in 2024, followed by Asia Pacific and Europe. However, momentum is shifting toward emerging markets, particularly the Middle East and Latin America, which are expected to expand faster than traditional travel hubs. Mexico, Brazil, and India are forecast to deliver the strongest growth among the top 15 global markets.

Digital channels continue to gain share, with online travel bookings rising 9% in 2024. By 2027, nearly two-thirds of all travel purchases worldwide are expected to be made online. Airlines and hotels remain the largest contributors to global travel revenue, accounting for almost three-quarters of total bookings. Suppliers currently lead in online distribution overall, though online travel agencies continue to hold an advantage in the hotel sector due to market fragmentation.

Travel demand remains resilient despite inflation, fluctuating policies, and cost pressures. Travelers are prioritizing blended business-leisure trips, value-driven choices, and sustainability considerations.

Overall, global travel bookings are expected to grow at an average annual rate of 5.2% through 2027, signaling steady but uneven expansion across regions and segments.

Tags: phocuswire

Global Travel Market to Reach $1.8T by 2027 as Digital Demand Grows

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