The worldwide travel industry is projected to experience a period of historic growth, expanding at a rate faster than the global economy over the next ten years, according to the World Travel Market (WTM) Global Travel Report. The findings, released today at the commencement of WTM London, offer an optimistic outlook backed by robust consumer shifts and market expansion.
The report, which draws on economic impact research from WTTC and Oxford Economics, projects that the travel sector is set to achieve an annual growth rate of 3.5% over the coming decade, surpassing the forecast global economic growth of 2.5% per year.
By the year 2035, the travel industry’s total economic contribution is expected to exceed $16 trillion globally, accounting for nearly 12% of the world’s GDP.
Growth Drivers and Consumer Shifts
The buoyant projections coincide with the travel industry reaching new milestones in 2025, with international arrivals set to top 1.5 billion, eclipsing the previous record established in 2019.
Key factors driving this accelerated growth include:
Emerging Markets: Continued economic expansion, particularly in the Asia Pacific region, is fueling a significant increase in outbound travel.
Prioritizing Experiences: Consumers are consistently prioritizing spending on travel, which remains a high share of overall expenditure. A key behavioral shift is the preference for purchasing experiences over material goods, with live events emerging as a major catalyst.
Event-Driven Travel: Destinations are actively capitalizing on the popularity of major touring artists, such as Taylor Swift’s Eras Tour and the upcoming Oasis’ Live ’25 Tour, to host events and drive significant tourism traffic.
New Travel Patterns and Destination Trends
The way people travel continues to evolve:
Longer Trips, Further Afield: Travelers are increasingly opting for longer stays and venturing to more distant locations.
Seasonality Shifts: To avoid high summer temperatures, a growing number of tourists are booking trips in the shoulder seasons or seeking out “coolcations.” This trend is expected to benefit Northern destinations, with arrivals to Sweden, Norway, and Finland forecast to grow by 9% in 2025, outperforming traditional summer spots.
Off-the-Beaten-Track: Alongside the enduring popularity of bucket-list destinations—which continue to benefit from strong social media exposure—more tourists are seeking alternative locations to avoid crowds.
Industry Expansion and Digital Integration
Capacity growth across key sectors is strongly supporting the forecast boom:
Aviation: Over 15,000 new aircraft are currently on order with manufacturers Boeing and Airbus.
Cruise: Global cruise deployment is anticipated to increase by nearly 6% in 2025.
Lodging: More than 500,000 new hotel rooms are slated to open this year, with an additional one million rooms under construction.
Furthermore, digital platforms remain crucial, driving growth via social media, online travel agencies, and review sites. Notably, Artificial Intelligence (AI) has rapidly become a significant factor, with three times as many travel professionals indicating that AI tools will increase overall travel expenditure.
Challenges and North American Outlook
Despite the global optimism, the report cautions that “economic and geopolitical headwinds are an immediate concern.” Ongoing trade tariffs and a persistent industry skills shortage continue to challenge the sector.
The outlook for North America is “less optimistic,” with inbound arrivals to the United States expected to decrease by 6% in 2025. The report suggests that the US may not regain its 2019 peak traveler levels until 2029.
Chris Carter-Chapman, WTM London’s Event Director, emphasized the report’s value: “With travel at record levels and set to outpace the wider economy over the next 10 years, WTM London is the place to be in order to network, plan and make business deals.”
Dave Goodger, Managing Director EMEA at Tourism Economics, added that the report provides an “important manual for the industry to understand and capitalise on the ever-changing dynamics of global travel.”
