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Mitra Sorrells, Senior Vice President of Content at the US market research institute Phocuswright – Image Credit ITB Berlin
- Despite global uncertainty and inflation fears, the global travel market continues to grow, albeit slower, with increased investments in travel startups and rising digitalization.
- AI tools are gaining traction in the travel industry, particularly among younger customers, but accuracy and real-time information improvements are needed.
According to Mitra Sorrells, Senior Vice President of Content at the US market research institute Phocuswright, the global travel market continues to grow despite a challenging consumer outlook. Speaking at the ITB Berlin 2025 conference, Sorrells highlighted that tourism growth is outpacing global GDP, albeit at a slower rate than previously. This is despite mounting global uncertainty and inflation concerns. She noted that household spending on travel remains a high priority, with travel product costs contributing to the increase.
Sorrells also stated that travel startups saw more investment in 2024, albeit lower than previous years. Digitalization is increasing across all sectors, with artificial intelligence (AI) emerging as a vital tool for the travel industry and consumers. However, AI still requires further adaptation to meet user needs fully.
The shift towards online travel planning and booking continues, with Europe leading globally at 66%. North America and the Asia-Pacific region follow closely with 63% each. Facebook and Instagram are the most popular websites for travel planning, but YouTube and Reddit are gaining popularity among younger customers.
Sorrells identified sustainable travel as a significant challenge for the industry, noting that while many consumers are conscious of it, they often lack a clear understanding of what it entails.
Sorrells also emphasized AI’s potential in the tourism industry. Currently, AI tools are mostly used by younger customers, and they need to improve in providing accurate, real-time pricing and travel product information. The implications of AI’s growth for the industry’s marketing and sales staff have yet to be explored.
