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Horizons 2025-2026

2026 Spending Trends

Travel frequency and budgets are increasing

Demand remains strong, particularly among younger generations

Looking to 2026, the appetite for travel remains strong. 84% of travellers say they plan to travel either the same or more – with 39% intending to travel more. This trend is particularly pronounced among Gen Z (56%) and Millennials (48%), who see travel as becoming an even greater priority. 

84% of travellers say they plan to travel the same or more in 2026 vs 2025

Woman relaxing on a lounge chair surrounded by lush tropical plants, reading a book in a peaceful spa-like setting.

Spending on flights and accommodation is rising

Alongside more trips, 71% of travellers say they’ll spend the same or more on flights, with 37% planning to spend more. Again, this is led by younger travellers: 48% of Gen Z and 44% of Millennials intend to up their budgets.

Accommodation shows a similar pattern, with 70% expecting to spend the same or more, and 31% planning to increase their spend. Among Gen Z and Millennials, that figure rises to 37%. 

Ancillary spend softens among older travellers

While overall spend is expected to grow, there are signs travellers are becoming more selective – particularly for ancillary purchases. Compared to last year, fewer travellers say they’ll spend on extras such as seat selection (30%, down from 35%), insurance (30%, down from 35%) and additional baggage (21%, down from 24%).

This approach is most evident among Gen X and Boomers, whereas Gen Z and Millennials continue to show relatively higher intent to spend.

Notably, 54% of Indians still plan to pay more for better in-flight food, while premium upgrades remain appealing in select markets — with 34% of Indian, 26% of Brazilian and 25% of UAE travellers likely to consider upgrading to business or first class.

Industry performance: Steady growth across most regions

Based on Skyscanner’s global search and demand data – drawn from over 160 million unique monthly users – travel performance in 2025 is tracking positively.

Year-on-year, we’ve seen a 10% increase in search volumes and an 11% rise in redirects, signalling both strong consumer intent and active booking behaviour. The outlook for the remainder of the year remains healthy.

The Middle East and Africa leads globally, with demand up 22% YoY. Latin America follows closely, with 18% growth; Europe’s growth is steady at 10%. Next, Asia Pacific shows 9% YoY growth, while North America, though positive, has the softest growth at 3%.

India is emerging as one of the strongest growth markets. The WTTC forecasts another record-breaking year in 2025, with the sector’s economic contribution expected to exceed ₹22 trillion.* International demand is also accelerating. In 2024, India welcomed 20 million international visitors – 2.3 million more than in 2019 – underscoring the country’s growing appeal as a global destination.

*WTTC – The World Travel and Tourism Council

Profile image of Marco Navarria, Senior Director – Content & Marketing, CAPA – Centre for Aviation

In 2025, global travel patterns have, with a few exceptions, returned to what they once were. The air travel industry is enjoying near record profitability, increasingly stable operational performance and more visibility around major cost inputs such as fuel, labour and raw materials. The main driver of this is the strong demand from passengers all around the world. Demand that is highlighted by the research found in the new Skyscanner Horizons Report for 2025-26.

 

The result is that while aviation faces a turbulent and uncertain outlook overall, the industry is increasingly able to find order in the chaos. There is a sense that aviation has arrived at a position of strength and is able to keep its forward momentum.”

Marco Navarria,
Senior Director – Content & Marketing, CAPA – Centre for Aviation

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