Travel and tourism market seen reaching $1.27 trillion by 2035

The global travel and tourism market is projected to grow from $685.62 billion in 2024 to $1.27 trillion by 2035, driven by leisure travel, digital booking tools, and demand for personalized experiences. Asia-Pacific is expected to be the fastest-growing region as governments and companies invest in tourism infrastructure and technology.

Why it matters: - The travel and tourism market is a major economic engine that supports jobs across hospitality, transportation, entertainment and retail. - The forecast points to sustained demand for leisure, business and international travel over the next decade. - Companies that adapt to digital booking, personalization and experiential travel trends may capture more share in a competitive market.

What happened: - The global travel and tourism market was valued at $685.62 billion in 2024. - The market is expected to reach $725.38 billion in 2025. - The market is projected to climb to $1,274.74 billion by 2035. - The forecast implies a 5.8% compound annual growth rate from 2025 to 2035. - Market Research Future published the outlook on June 29, 2026. - The report includes a free sample PDF copy.

The details: - Leisure tourism holds the largest market share among type segments. - Family vacations and leisure travel continue to generate strong demand. - Air travel holds the largest share by travel mode because of speed, convenience and international connectivity. - Online bookings dominate booking channels as travelers compare prices and reserve trips on digital platforms. - Mobile-based bookings are also growing as smartphone use rises. - Travel companies are using artificial intelligence, machine learning and data analytics to recommend itineraries, accommodations and activities. - Virtual assistants, chatbots and predictive analytics are improving customer response times and trip planning. - The report cites Expedia Group, Booking Holdings, Airbnb, Tripadvisor, TUI Group, Trip.com Group, Travel Leaders Group, American Express Global Business Travel and Marriott International as key players. - The report also points to related research on golf tourism, event tourism, travel loyalty programs and B2B travel.

Between the lines: - The forecast reflects a shift from basic trip planning to experience-driven travel. - Millennials and Gen Z are pushing demand toward cultural tourism, culinary travel, wellness retreats and adventure travel. - Emerging economies are becoming more important as middle-class travel spending expands. - Governments are backing tourism through infrastructure investment, airport development, marketing and visa facilitation. - Asia-Pacific is expected to post the fastest growth as incomes rise, internet access expands and public investment improves travel capacity. - North America remains a leading market, while Europe stays a major destination for cultural and luxury travel. - South America is gaining from eco-tourism and adventure travel. - The Middle East and Africa are benefiting from luxury tourism projects, business travel and large-scale destination development.

What's next: - Tourism investment is likely to keep flowing into airports, hotels and digital booking systems. - Travel firms are expected to lean harder into personalization, contactless services and AI-driven tools. - Sustainable, wellness and medical tourism are positioned to expand alongside experiential travel. - The industry’s growth path will depend on continued recovery in consumer spending and international mobility.

The bottom line: - Travel and tourism is shifting into a more digital, personalized and experience-led market, with the strongest upside likely in leisure travel and Asia-Pacific growth.