The resilience of American travelers continues to impress Zane Kerby, president and CEO of the American Society of Travel Advisors (ASTA).
“There’s so much that affects travel — everything from the price of oil and geopolitical posturing to the stock market and the weather,” he said. “We’ve had all the tariff talk and the talk from this administration about annexing Greenland and Canada. … But literally, we’re having a record travel year.”
Kerby notes that in 2024, a record-setting 107.7 million Americans traveled internationally.
“And we’ll probably be up another 2% or 3% this year,” he said. “It doesn’t look like anything is slowing travel down."
Kerby says that American travelers take the news in stride.
There’s so much that affects travel — everything from the price of oil and geopolitical posturing to the stock market and the weather. … But literally, we’re having a record travel year.
“It almost doesn’t matter what it is — oil spikes or weather or whatever — it doesn’t seem to make much of a dent,” he said.
A similar brand of optimism was widespread in conversations with several different tourism executives as they shared their expectations for 2026. And while there was some hedging, the overall message was clear: Many in the tourism industry are hopeful about the business of travel next year.
A Tale of Two Markets
David Hu, president and CEO of Pleasant Holidays, expects that the tourism industry in 2026 will continue to be driven by what he describes as a “K-shaped economy.”
“Basically, it’s the bifurcation of the rich and the not so rich,” Hu explained. “The rich are continuing to do well with a buoyant stock market, versus the people who are kind of on the middle and lower end. For them, it’s definitely getting harder. There’s a lot more inflation. There’s a lot more job insecurity.”
It’s the bifurcation of the rich and the not so rich.
Hu said K-shaped demand has shown up in the tour wholesaler’s bookings for 2025.
“The higher-end is definitely continuing to do better,” he said about Pleasant’s products. “And the not-so-higher-end is definitely struggling. I don’t think there’s anything that would affect our expectations for next year — except a stock market change or if the economic outlook changes.”
Hu says he does not predict any improvements in the economy and expects that the bifurcation will persist into next year.
Luxury Is King
The luxury market’s strength is a travel trend that many predict will continue into 2026.
David Kolner, Virtuoso’s executive vice president of strategic communications, says that the consortium’s latest Luxe Report revealed that 67% of the travel advisor members polled expect to see an increase in travel demand next year.
“That’s a pretty strong indicator about where the business is going,” Kolner said. “And I think it’s driven by high-net-worth confidence in the economy.”
Kolner adds that Virtuoso member bookings for 2026 and 2027 are currently up significantly from where they were at this time last year.
Almost everybody who’s working in the luxury travel space is seeing increases in annual sales.
“We have 24% more business on the books for one to two years out,” he said, noting that more high-net-worth consumers appear to be prioritizing spending on experiences. “If you look across the luxury industry, a lot of the luxury goods companies are flat or down year over year in terms of their total sales. Whereas almost everybody who’s working in the luxury travel space is seeing increases in annual sales.”
The Top Destinations for 2026
Kolner says “crowd control” is another trend that stood out in Virtuoso’s latest Luxe Report.
“Clients are interested in going to destinations that are not crowded — that is the new luxury,” he said. “This includes going to more sustainable destinations such as Greenland, Iceland and Norway or destinations that are high value, low volume, like Bhutan.”
Kolner says that while an enormous number of people are still going to classic destinations such as London, Paris and Italy, the continual movement toward quieter, cooler destinations is notable.
Travel Leaders Groups is betting on the popularity of Malta.
Credit: 2025 aapsky/stock.adobe.comLindsay Pearlman, president of Travel Leaders Network, agrees that familiar European cities will remain popular in 2026, but he says his organization is also seeing strength from emerging destinations in the region.
“People are looking for something unique and away from the crazy busyness of some of the more popular destinations,” Pearlman said, placing his bets on islands such as Tenerife, Spain, and Malta.
Pearlman is also seeing an uptick in interest for Saudi Arabia, especially the Red Sea area.
Travelers are requesting to spend more nights in a single destination.
Credit: 2025 encierro/stock.adobe.com“There are a lot of luxury resorts,” he said. “It’s a very unspoiled area. And they’re putting a lot of money into building it out for North Americans.”
Gina Bang, chief sales and marketing officer for Avanti Destinations, says her company is seeing a sizeable increase in demand for Australia and New Zealand next year. Bang attributes some of the renewed interest Down Under to recent increases in air service to the region, including United Airlines’ plan to launch three-times-weekly nonstop service between San Francisco and Adelaide in December.
“It’s going to be a 15-hour flight,” Bang said. “But if you’re going to South Australia — maybe to do the Ghan Train or go wine tasting there — instead of having to go all the way back to Sydney or Brisbane to come home, you can just take the [United Airlines] nonstop.”
All Onboard
Travel Leaders’ Pearlman says that cruise business — particularly to the Caribbean — has been a big winner thus far in 2025, and his company has seen bookings for first-time cruisers jump 31% year over year. Pearlman expects that trend will continue in 2026.
“Short Caribbean sailings used to just be that weekend booze-cruise thing on old ships, but they’ve done a great job of adding new inventory,” he said. “And the buildout of private islands has been a huge win. It’s been exceptionally appealing to younger travelers, families and first-time cruisers overall."
Cruising is in high demand thanks to market innovation.
Credit: 2025 Maridav/stock.adobe.comAngie Licea, president of Global Travel Collection, also expects more solid growth in the company’s cruise business — especially among younger clients who are particularly drawn to expedition products.
“For the generation in their 20s and mid-30s, having possessions is less important,” said Licea, who is a mother to two sons in that age group. “They really are out there looking for experiences.”
Adam Duckworth — founder and president of Travelmation — says his company’s 2026 cruise bookings are already up 22% year over year.
“One of the things we are excited about is the continued innovation on cruise ships,” Duckworth said, pointing to companies such as Atlas Ocean Voyages and Explora Journeys, along with ships such as Royal Caribbean’s Legend of the Seas and Disney Cruise Line’s Disney Destiny.
Sportscations, Set-Jetting, FOMO and Slow Mo
Duckworth also notes that his company has seen a notable increase lately in what he describes as “sportscations,” an event-driven travel trend he expects to see more of in 2026.
Formula 1 fans are planning trips around races.
Credit: 2025 FiledIMAGE/stock.adobe.com“One of the things that started this a couple years ago was [traveling for] Taylor Swift concerts,” Duckworth said. “Now, it has begun to translate into the Super Bowl, Formula 1 racing, WrestleMania and the Olympics — all these things where people are saying, ‘Let me make a trip out of this. Why just go to a concert only when it’s in my hometown? Why not travel and do it?’”
Meanwhile, Kolner says that Virtuoso has seen an uptick in clients interested in set-jetting, or planning trips to the filming locations of their favorite shows and movies.
“Whether that’s ‘The White Lotus,’ park a client’s interest in a destination,” he said. “So, continue to look for that as a motivator of travel in the year ahead.”
Whether that’s ‘The White Lotus,’ ‘KPop Demon Hunters’ or ‘House of the Dragon,’ shows and movies continue to spark a client’s interest in a destination.
Kolner says Virtuoso advisors are also seeing a new twist on the way in which clients are motivated by the fear of missing out (or FOMO). For example, a fear about climate change is motivating some clients to take trips to the Arctic or the polar regions, he says.
Travelers want to see destinations vulnerable to the effects of climate change.
Credit: 2025 phototrip.cz/stock.adobe.com“It’s FOMO about the world,” he said. “They say, ‘it may not be the same, and I can’t wait to go.’ Or maybe it’s a fear about endangered animals — whether it’s on a safari or a visit to Rwanda’s mountain gorillas. It’s the idea of getting to a place before it changes.”
Virtuoso advisors are also reporting that more of their clients are seeking to savor these destinations by staying longer, so they can apply a “slow-mo” approach, according to Kolner.
“Clients are saying, ‘I want to go to one place and really dig into the local culture, lingering longer to focus on food, wine, heritage, unhurried days, watching wildlife and wandering neighborhoods,’” he said.
That shift fits with the generational status change that Licea of Global Travel Collection is seeing with her agency’s clients.
“That whole one-upping-the-Joneses thing for my generation used to be about how big your house was or what kind of car you drove,” Licea said. “Now it’s all about what kind of experiences you’ve had.”