Digital adoption and emerging markets drive a new phase of steady, uneven growth, according to a new Phocuswright report
Nov 3, 2025
The global travel market has fully recovered, reaching $1.6 trillion in bookings in 2024 and projected to exceed $1.8 trillion by 2027, according to Phocuswright’s latest report. Growth is fueled by digital adoption and resilient leisure demand, though it remains uneven across regions and sectors.
Key takeaways
- Digital dominance: Two-thirds of all travel bookings will be made online by 2027, as digital adoption continues to reshape how travelers plan and purchase.
- Regional divergence: North America leads with $539 billion in bookings, while the Middle East and Latin America are emerging as the fastest-growing regions.
- Market composition: Flights and hotels represent nearly 75% of global bookings, with online travel agencies maintaining an edge in the fragmented hotel sector.
- Emerging growth leaders: Mexico, Brazil, and India are projected to record the strongest growth among the top 15 global markets by 2027.
- Steady but uneven growth: Despite inflation and policy challenges, global bookings are expected to rise by 5.2% annually through 2027.
- New traveler mindset: Sustainability, value consciousness, and multi-destination trips are shaping more thoughtful and intentional travel behavior.
Get the full report at Phocuswright
