Summary: Deloitte's 2026 Travel Industry Outlook finds demand remains resilient but may plateau as financial caution rises among travellers, corporate travel moderates and generational and technology shifts—notably generative AI—reshape booking and discovery.

Deloitte's 2026 Travel Industry Outlook suggests a generally resilient travel sector but warns of a possible plateau as consumers grow more financially cautious. The report—referred to here as the Deloitte travel outlook 2026—finds that while travel remains a priority across income groups and generations, travellers are increasingly trimming trip frequency, length and on-trip spending.

Demand remains strong but shows signs of moderation

Deloitte notes that during the 2025–2026 holiday season more than half of Americans planned to travel—the highest level since the COVID-19 pandemic—but many travellers adopted more conservative behaviours. These included fewer trips, shorter stays, reduced travel distance, selecting lower accommodation tiers and cutting back on in-destination spending.

  • High-income sentiment shift: The share of Americans earning more than US$200,000 who reported negative financial sentiment rose to 15% in 2025, up from 9% in 2024
  • Corporate travel moderation: 53% of frequent business travellers expected to travel three or more times per month in 2025, down from 63% in 2024
  • Premium pressure: Products with average daily rates below US$500 could face particular stress

Deloitte highlights that while many premium and mass-market luxury offerings may feel the strain, the ultra-luxury segment has so far shown continued rate growth with limited occupancy impact.

Generational change and technology are reshaping travel

A structural shift is emerging as younger cohorts account for a growing share of travellers. As of the 2025 holiday season, Gen Z and millennials together represented about half of US travellers. Gen Z's share climbed from 8% in 2024 to 14% in 2025, despite lower average incomes, and both groups are changing how trips are discovered, booked and experienced.

  • Younger travellers depend heavily on digital and social platforms for planning
  • Sustainability is a stronger consideration for Gen Z and millennials
  • Generative AI adoption accelerated: nearly one quarter of travellers reported using gen AI tools for trip planning in late 2025, triple the share recorded in 2022
  • Millennials are leading use of gen AI for itineraries and bookings; Gen Z prioritises short-form social video for discovery
Travellers using mobile devices at an airport, illustrating digital and generative AI use in travel planning
Digital platforms and generative AI are increasingly shaping how younger travellers plan and book trips

Corporate travel’s slowing pace and industry implications

Deloitte’s Corporate Traveler Survey points to a reduction in the frequency of business trips among frequent travellers. Because frequent corporate travellers are more likely to buy premium services, a pullback could dent revenue for airlines and hotels that have expanded higher-end offerings in recent years.

The report warns that segments with average daily rates below US$500 may come under particular pressure, while ultra-luxury properties appear relatively insulated from short-term occupancy impacts.

Regulatory and policy risks to monitor

Deloitte also flags policy developments that could influence travel in 2026. These include visa and border procedure changes, evolving data privacy and consumer protection rules, and a fragmented approach to climate regulation across jurisdictions that may complicate planning for operators and travellers alike.

What the outlook means for the industry

Overall, Deloitte characterises 2026 as "a year of turbulence and transformation for the travel industry." While the firm does not forecast a sharp downturn, it warns some segments may stagnate or come under pressure. The key to sustaining growth, Deloitte says, will be better understanding younger travellers, embracing integrated technology—especially generative AI—and navigating an increasingly complex regulatory landscape.

So what? For travellers this outlook signals more digital-first planning tools, a stronger focus on sustainability options and possible changes in pricing or availability in premium segments. For travel businesses, the message is clear: adapt products and marketing to younger cohorts, invest in technology-driven discovery and booking, and prepare for policy changes that could affect cross-border movement and consumer protections.