Research Report

Asia’s travelers are mobile-first, OTA-driven, and value-conscious—yet increasingly open to premium, branded, and sustainable travel.

As major financial powerhouses and robust passenger engagement engines, airline loyalty programs are leveraging technology for hyper-personalisation, with a strong focus on engaging less frequent flyers.

While Asia-Pacific, Latin America, the Middle East, and Africa showed growth and Europe remained stable, North America witnessed a 5% slowdown, mainly due to the “Trump Effect” bringing policy changes, travel bans, and tariffs, leading to shifts in travel sentiment.

In the post-pandemic environment, volatility returns: not from viruses, but from economic headwinds and disruption of the current distribution landscape. In 2025, the winners will be those who adapt quickly to a more fragmented, tech-driven landscape.

Asia’s outbound travelers are getting younger, more digital, and more experience-driven—forcing global travel brands to rethink how and where they engage.

Despite rising political and economic uncertainty under President Trump's second term, the global travel industry remains resilient, with a 2% year-on-year uptick. Tourism in the U.S. is slowing due to the decline in inbound travel but strong domestic travel builds optimism for the year.

The remarkable resilience of the airline industry in the post-pandemic period is being tested once again, this time by a forced restructuring of the global economic order. As a result of recent tariff announcements, economic uncertainties are likely to reduce passenger demand, compel airlines to adjust their capacity, exacerbate supply chain issues, and potentially lead to some airlines going out of business

Recession alarm bells are going off. A global downturn isn't our base case, but it's still worth reviewing how the travel industry might perform in a worst-case scenario. Even in a turbulent market, travel won't stop — it will shift.

Trump-era politics is driving down global interest in U.S. travel, with safety and perception key to recovery.

Travel is the most aspirational consumer purchase out there. With secular tailwinds and a boost from post-pandemic revenge travel, our industry was flying high. But now, new policies announced by U.S. President Donald Trump may take travel out of the clouds and back down to earth.

Sluggish recovery in the air distribution business, despite record travel demand, signals a disturbing trend for global distribution systems (GDSs). Without a one-size-fits-all strategy, GDSs should look again at their business models as airlines continue to push for direct bookings.

Global travel softened slightly in February 2025, declining 1% year-on-year. While travel policy shifts pose risks to global travel, consumer demand remains strong, particularly in emerging markets.