The global travel market continues to grow steadily

According to data from the market research institute Phocuswright, the European and US travel markets are largely saturated. Speaking at the opening of ITB Berlin 2026 on Monday, Mitra Sorrells, CEO of the US institute said that despite this, she expected global annual growth of around 5.3 per cent until at least 2027. The driving forces were India and Latin America.

Sorrells said that last year, the global market grew by six per cent to 1.93 trillion dollars (about 1.63 trillion euros). The average annual growth rate from 2025 to 2028 would level off at four per cent in Europe and the US, eight per cent in the Middle East, and around ten per cent in the Latin American and Indian markets. She forecast a global market volume of $2.14 trillion (€1.81 trillion) for 2027.

Rapid integration of AI

According to Phocuswright surveys, the influence of AI on the work of stakeholders and consumer travel planning is rising extremely fast. In the tourism industry, 73 per cent already use AI in internal processes. Around 50 per cent have already incorporated it in communications with consumers, said Sorrells. 13 per cent of the companies surveyed said they were not yet using AI, but were considering it. Only one per cent responded with a clear “no”, while three per cent stated uncertainty.

Customers are also making increasing use of AI’s wide-ranging options. Despite this, Europe’s major economies are hesitant. For travel planning, the UK, France and not least Germany report AI usage rates of 22, 19 and 15 per cent respectively. The situation is different in the US: about a year ago Phocuswright surveys showed a usage rate of 33 per cent, which rose to 39 per cent in September and 49 per cent at the beginning of this year.

Millennials at the forefront of AI usage

Among US-based travellers, the influence of AI varies greatly among age groups. Millennials (born between 1982 and around 1995) lead the way, with 67 per cent using AI. They are followed by Gen Z, the next youngest group (born 1995 to 2010), at 59 per cent. Among Gen X (born 1965 to 1981), just under half (45 per cent) trust AI, while US boomers (born 1946 to 1964) and older people use it only about a quarter of the time.

For the tourism industry, this means that communications with customers will increasingly shift to artificial intelligence. The industry will only be able to maintain current levels of loyalty if brands can establish themselves to be trustworthy through recommendations.