Travel Demand Surges Despite Costs

Photo: ITTN

Global travel demand is set to rise in 2026 despite ongoing concerns about affordability and labour market uncertainty. According to the International Air Transport Association (IATA), an estimated 5.2 billion people are expected to travel by air next year, representing a 4.4% increase over the record-breaking passenger numbers seen in 2025. The data suggest that the appetite for travel remains resilient even amid economic headwinds.

Lower airfares drive renewed momentum

Falling ticket prices are a key catalyst behind the renewed surge in demand. International airfares are down by around 10% or more, while domestic fares have declined by roughly 3%. Long-haul routes to Europe and Asia for summer 2026 are trending particularly low. Kayak data show that summer flights to Europe are priced about 14% below last year’s levels, making global travel more accessible for cost-conscious travellers.

Emerging destinations gain visibility

Travellers are increasingly widening their searches and looking beyond traditional hotspots. Eastern Europe has emerged as a standout region, offering what travel experts describe as “big trip energy” without premium pricing. Cities such as Prague, Sofia, Krakow, Budapest and Sarajevo rank among the fastest-growing destinations, with Sarajevo also recording some of the steepest airfare declines, down as much as 36% compared with 2025.

Event-driven travel reshapes planning

Another defining trend for 2026 is the rise of event-led travel. Major sporting and cultural events are becoming primary motivators for trips, creating a sense of urgency that encourages early booking. The Winter Olympic Games in Italy and the FIFA World Cup hosted across the United States, Canada and Mexico are expected to generate significant international travel flows.

Expedia research indicates that roughly six in ten travellers are likely to attend a local sporting event while travelling, rising to seven in ten among Gen Z and millennials.

Screen and literary tourism fuels inspiration

Film, television and books continue to influence travel decisions. More than half of travellers say they are more interested in screen-inspired trips than they were a year ago, with destinations gaining popularity through streaming platforms and social media-driven literary trends.

Cruising regains momentum

Cruising is also experiencing a strong comeback. AAA projects that 21.7 million Americans will take ocean cruises in 2026, well above pre-pandemic levels. While older couples remain the core market, the industry is broadening its appeal through shorter itineraries and more diverse onboard experiences.

Smarter planning offsets affordability pressures

Travellers are increasingly relying on fare alerts, flexible travel dates and bundled air-and-hotel packages to manage costs. These tools are helping to offset rising accommodation and service prices, enabling continued growth in travel volumes.

As analysts at International Investment note, the growth of tourism demand in 2026 reflects structural changes in consumer behavior: travel is becoming more conscious, event-driven, and geographically diversified, opening up new opportunities for investment in transport, hospitality, and tourism infrastructure beyond traditional hubs. In this context, destinations with simple logistics and a stable tourism offering are playing an increasingly prominent role, including Georgia, which is strengthening its position in the international tourism market thanks to its visa-free regime, expanding air connectivity, and a diverse range of travel formats.