Global travel & tourism enters a structural growth phase: Rising incomes, experience-led consumption and digital transformation to drive sustained expansion of the $11.7 trillion sector – Anand Rathi Advisors Limited

Mumbai, May 19, 2026: Anand Rathi Advisors Limited (ARAL), one of India’s premier investment banking and advisory firms, released a detailed report titled “Global Travel & Tourism Report.”

In this comprehensive report, ARAL analyses the evolving global travel & tourism landscape, highlighting the sector’s strong post-pandemic recovery and long-term structural growth drivers. The report examines how rising disposable incomes, expanding middle-class participation, increasing cross-border mobility, and rapid digital adoption are reshaping global travel demand. The report highlights that the global travel & tourism sector currently contributes ~10% to global GDP, supports over 350 million jobs, and is expected to grow from ~$11.7 trillion to ~$16.5 trillion over the long term, driven by sustained demand across both leisure and corporate travel segments.

The report explores key themes shaping the future of global travel & tourism, including:

1. Global Market Overview & Demand Drivers:Analysis of the sector’s scale, contribution to global GDP, employment impact, and long-term structural drivers including rising incomes, aspirational consumption, and increasing travel frequency.
2. Regional Market Dynamics:Detailed coverage across North America, Europe, India, MENA, ASEAN, Japan, China, South Korea, South Africa, and Australia & New Zealand, highlighting region-specific trends, growth drivers, and tourism flows.
3. Travel & Tourism Value Chain:End-to-end mapping of the ecosystem covering trip planning, transportation, accommodation, and experiences, along with the role of B2B infrastructure and B2C platforms.
4. Business Model Analysis:In-depth evaluation of key industry business models including OTAs, GDS, TMCs, metasearch platforms, tour operators, and experiences platforms.
   5. Segment-wise Tourism Trends: Analysis of key tourism segments such as business, adventure, wellness, spiritual, eco, and medical tourism.
   6. Technology & AI Impact: Examination of how AI and digital technologies are transforming pricing, personalization, and customer experience.
   7. Competitive Landscape: Overview of key global players across the travel ecosystem.

The report highlights that the global travel & tourism sector is witnessing a clear shift from traditional travel towards experience-led and premium consumption, with strong growth across adventure, wellness, and experiential tourism segments. Corporate travel recovery and the rise of blended business-leisure travel are further supporting higher spend per traveller and margin expansion.

According to the report, the sector’s long-term growth will be driven by:

• Rising disposable incomes and expansion of the global middle class
• Increasing travel frequency and aspirational consumption trends
• Strong recovery in corporate travel and global mobility
• Rapid digital adoption across booking, pricing, and customer engagement
• Growing demand for niche and experience-led tourism segments

The report also highlights that while the sector remains exposed to geopolitical risks, fuel price volatility, and macroeconomic cycles, it has consistently demonstrated strong resilience and recovery across disruptions. The report additionally incorporates ARAL’s views on the recent developments surrounding outbound tourism demand following Prime Minister Narendra Modi’s remarks encouraging domestic tourism, and analyses the potential near-term implications on Indian travel trends.

Part B of the report contains profiles of 500+ companies across the global travel & tourism ecosystem and will be available on request.

While unveiling the report, Samir Bahl, CEO – Investment Banking, Anand Rathi Advisors Limited, said:

“At Anand Rathi Investment Banking, travel & tourism represents a key sector within the broader global consumption landscape. Through our ‘Global Travel & Tourism Report’, we aim to provide stakeholders with a comprehensive understanding of the sector’s evolving dynamics and long-term growth potential.”

While unveiling the report, Atul Thakkar, Executive Director – Investment Banking, Anand Rathi Advisors Limited, said:

“The global travel & tourism industry has demonstrated remarkable resilience and structural strength post-pandemic. Travel today is increasingly becoming a lifestyle-driven category, particularly among younger demographics who prioritise experiences over material consumption.

At the same time, AI is fundamentally reshaping the industry through personalization, dynamic pricing, automation and conversational booking ecosystems. While the sector remains exposed to geopolitical and macroeconomic risks, the long-term demand outlook remains highly attractive across both developed and emerging markets.

The report also incorporates our views on the recent developments around outbound tourism demand following Prime Minister Narendra Modi’s remarks encouraging domestic tourism. While we expect some near-term moderation in outbound travel sentiment, we do not foresee any regulatory intervention aimed at curbing outbound travel demand.”

Key Highlights of the Research Findings

• Global market estimated at ~$11.7 trillion (CY25E), projected to reach ~$16.5 trillion over the long term
• Sector contributes ~10% to global GDP and supports 350 million+ jobs
• Europe remains the largest inbound tourism market with ~794 million international tourist arrivals in 2025
• ASEAN projected to be among the fastest-growing tourism regions globally
• India’s travel & tourism sector projected to grow at ~7% CAGR through FY35
• Corporate travel recovery and premiumization emerging as key margin drivers across travel platforms
• Experience-led segments driving growth
• AI transforming pricing and customer experience