Travel industry will overtake the global economy, set to reach sixteen trillion US dollars by 2035 – Global Travel Report from World Travel Market, new research here

Posted on November 4, 2025

By: Tuhin Sarkar

The travel industry is expected to exceed the growth rate of the global economy during the next decade, as annual growth is expected to reach 3.5%, compared to the growth of the global economy by 2.5%. This was revealed in the latest World Travel Market (WTM) global travel report, which was released on November 4, marking the start of the WTM in London. According to the report, by 2035, the global travel industry will generate more than $16 trillion, contributing nearly 12% of global GDP. With international arrivals expected to exceed 1.5 billion by the end of 2025, the travel sector is reaching new heights.

Optimistic forecasts for the future of travel

In the World Travel Market Report, analysts forecast that the global travel industry will grow exponentially, outpacing the broader economy in the coming years. The travel market is on track to achieve an annual growth rate of 3.5% over the next decade, far exceeding the 2.5% expected for the global economy. The forecast is made against the backdrop of record international travel in 2025, with arrivals expected to reach 1.5 billion, surpassing the record set in 2019.

By 2035, the global travel sector is expected to generate more than $16 trillion, representing approximately 12% of global GDP. These optimistic growth forecasts highlight the ongoing transformation of the travel industry, driven by increasing global mobility and evolving consumer behaviours.

Drivers behind travel growth

The report identifies several key factors contributing to the rapid expansion of the travel industry. One of the primary drivers is the growing number of travelers venturing to further destinations and booking longer stays. Emerging markets, especially in the Asia-Pacific region, are expected to witness continued economic growth, increasing demand for international travel.

Furthermore, as consumer spending habits evolve, more individuals are prioritizing travel, allocating a significant portion of their budgets to experiences rather than material goods. The shift towards experiential consumption, including live events, has boosted the travel sector. The rise in popularity of live concerts, exemplified by major tours such as Taylor Swift’s Eras Tour, is an indication of how cultural events are reshaping the travel landscape.

New travel trends and changing consumer behaviors

Tourists are increasingly choosing to travel off the beaten path, with many opting for trips during peak seasons to avoid the heat of the summer months. The report indicates a rise in the ‘relaxation’ trend, with northern destinations such as Sweden, Norway and Finland expected to see an influx of travellers. This trend is in keeping with growing interest in visiting cooler, less traditional summer hotspots.

In parallel, the destinations on the list remain very popular as travelers search for distinctive must-visit locations. These destinations benefit greatly from the power of social media, which continues to influence travel choices. Destinations such as Iceland and Machu Picchu continue to enjoy strong interest, with social platforms playing a pivotal role in enhancing their appeal to a global audience.

The role of sustainability in the future of travel

Sustainability remains a major concern for the travel industry, with environmental impact under increasing scrutiny. Despite growing awareness, consumers are still resistant to paying higher prices for environmentally friendly options. This resistance represents a challenge for the industry, as it can be difficult to secure the funds needed to modernize and implement sustainable practices in a price-sensitive environment.

However, the push towards sustainability is expected to drive innovation within the sector, as destinations, airlines and hotel chains strive to meet consumer expectations and regulatory requirements. The shift towards greener practices, despite the challenges, is likely to shape the future of travel in ways that balance economic growth and environmental responsibility.

Expansion into the aviation, cruise and accommodation sectors

The aviation, cruise and accommodation sectors are poised for significant expansion, as indicated in the report. More than 15,000 new aircraft are currently on order from major manufacturers Boeing and Airbus, indicating a strong future for air travel. Meanwhile, the global cruise industry is on track to expand by approximately 6% in 2025, further contributing to the industry’s growth.

The hotel sector is similarly booming, with more than 500,000 new hotel rooms scheduled to open in 2025, with an additional 1 million rooms under construction in the following years. This massive expansion of infrastructure reflects the growing demand in the industry, as established and emerging destinations look to accommodate the influx of travellers.

Digital platforms and artificial intelligence as drivers of growth

In today’s travel landscape, digital platforms play an increasingly central role. Social media, online travel agents and review sites are more popular than ever, leading to increased engagement and bookings. Furthermore, artificial intelligence (AI) has become a major force in the industry, with many travel professionals recognizing its potential to increase overall spending in the sector. The report highlights that AI tools are expected to help enhance customer experiences and streamline operational efficiency, contributing to the growth of the travel market.

As AI tools become more integrated into the travel ecosystem, they will likely play a pivotal role in reshaping how consumers interact with the industry, from personalized recommendations to smarter travel planning.

Concerns about economic and geopolitical headwinds

Despite the optimistic growth forecast, the report also acknowledges potential challenges that could impact the course of the travel industry. Economic and geopolitical uncertainties pose significant risks, especially in the wake of trade tariffs and political instability. For example, the imposition of trade tariffs during the Trump administration has increased the cost of doing business for many players in the sector.

Furthermore, the industry continues to face skills shortages, which may limit growth in key areas such as customer service, aviation and hospitality. The report notes that addressing these issues will be crucial for the industry to maintain its growth momentum.

Regional Outlook: North America faces challenges

While the global travel outlook is positive, the report notes that the immediate outlook for North America is less promising. US arrivals are expected to decline by 6% in 2025, meaning it will take several years before the country sees a return to 2019’s record levels. This decline in arrivals is a notable concern for the region, with experts suggesting that a recovery to pre-pandemic levels may not happen until 2029.

However, despite these challenges, the overall global outlook remains strong. Emerging markets and other regions are expected to continue to drive growth, with opportunities for expansion in several key areas.

Conclusion: The role of London’s global travel market in shaping the future of travel

Chris Carter Chapman, World Travel Market’s London Events Director, emphasized the importance of this year’s event in navigating the rapidly evolving travel landscape. The WTM World Travel Report provides essential insights for industry professionals as they look to capitalize on opportunities and overcome challenges in the sector.

As the global travel industry continues to reach new heights, WTM London serves as an important platform for networking, knowledge exchange and business deals. With travel expected to outpace global economic growth, the industry’s trajectory is incredibly promising, but it will require strategic planning, innovation and adaptability to ensure long-term success.