Market Estimates and Forecasts

Consumer love for travel, rising demographics, and exciting innovation square off against unstable geopolitics, affordability challenges, and a lukewarm economic expansion

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%.

The global cruise industry generated $71 billion in revenues in 2024 and is projected for strong growth, with a forecasted growth rate of 5% year-on-year, to reach $78 billion by 2026.

The global airline sector is in a growth phase, projected to reach $949 billion by 2026, driven by strong leisure demand and the significant rebound of business travel.

As growth slows, hotels are embracing experience, innovation, and agility to navigate a cautious, yet resilient, travel landscape in 2025

The global accommodation market, valued at $1.2 trillion in 2024, is projected to reach $1.3 trillion by 2026. Driven by increasing travel demand, the Asia-Pacific region is forecasted to overtake Europe in accommodation revenues by 2026. Despite ongoing geopolitical and regulatory challenges, we anticipate continued moderate growth for the accommodation sector.

If 2023 was the year of revenge travel, and 2024 of normalization, what will 2025 bring? Likely a slow and steady baseline of growth amid divergence, challenges, and change.

Asia the new Europe in 2024? As the world gears up for another year of post-pandemic travel, the industry will see Asia take the center stage, driving growth in 2024 while Europe stabilizes at modest growth levels.

2024 will be the year that the travel industry fully transitions from catch-up to true growth above pre-pandemic levels. Without revenge travel as a tailwind we expect a more normal growth trajectory for the travel industry this year.

The U.S. airline industry is roaring again and gunning for record profitability in the coming summers on the back of strong results delivered in 2022. However, dynamic passenger demand and macroeconomic conditions could dampen this growth.

The new year will give no rest to a weary travel industry. After years of work to dig out of the hole the pandemic put us in, travel in 2023 may find that the hardest part still lies ahead. The groundwork for growth is in place but achieving success will be no simple task.

The global accommodation sector is witnessing a fast-paced recovery with 2022 revenue levels not far from reaching pre-pandemic levels. A closer look into the industry performance shows interesting variations in the pace of recovery as we review regions and sub-sectors.