Research Report

Travel demand is holding in 2026, but growth will favor markets and brands that adapt as power shifts geographically and behaviorally.

Global travel is expected to end 2025 on a high note, growing 4% year-on-year as of November, fueled by a shift toward the "experience economy" where travelers are now chasing high-impact, live events rather than just destinations.

Travel venture capital is no longer in freefall — but it is far from fully recovered. Now defined by discipline, funding is concentrated in fewer, larger bets on proven companies.

The global online travel agency (or OTA) market is experiencing sustained, moderate growth, fueled by resilient international travel demand and rapid digital transformation across all travel sectors. The OTA market, valued at $94 billion in 2024, is projected to reach $107 billion by 2026, growing at a steady rate of 7%.

Global travel performance accelerated entering the final quarter of 2025, growing 3% year-on-year. The surge was driven by two major trends: a spike in car-rental demand, and the continued lead of the Asia-Pacific region.

Live Tourism and emerging markets are defining the next phase of global travel growth, requiring the industry to shift focus from traditional seasonality to high-value event cycles and dispersed travel models.

Hotel brands are trading ownership for scalability through asset-light models, brand diversification, and expanding loyalty programs.

The global car rental sector is a resilient $92 billion market, driven by leisure travel, with the Americas being the largest market. The sector is rapidly digitizing with 74% of bookings online, with direct bookings driving as much traction as intermediaries.

MENA travelers are redefining global tourism — blending faith, family, and cultural identity with digital fluency and a growing appetite for authentic, experience-led travel.

In Europe’s airline market, cost discipline beats scale — ultra-low-cost carriers lead on margins, while legacy giants rely on consolidation and strategy to stay competitive.

Global travel maintains resilience at 1% annual growth, but operators must abandon traditional seasonality models and leverage flexible pricing to capture demand that is now more evenly distributed throughout the year.

Profitability, not demand, is now the key metric for investors tracking the U.S. hotel sector.