Phocuswright Research Roundup 2H25
At a glance
- Nearly 40% of U.S. travellers used generative AI for trip planning in 2025, up 11 percentage points year-on-year.
- About one in three U.S. and European travellers now use GenAI to plan trips; 78% say it improves planning.
- Fewer than half of U.S. leisure travellers claim a go-to brand; most abandon loyalty for price, fit or novelty.
- Global travel market valued at $1.67 trillion in 2025–2026 (projected); U.S. spending tightens amid competing priorities.
What the report covers
Phocuswright's roundup synthesises 33 reports published in 2H25 across consumer research, loyalty trends, AI adoption, startup funding and market sizing in APAC, Americas, Europe and Middle East. The collection examines how generative AI reshapes trip planning and booking, generational shifts in loyalty expectations, fintech's role in emerging markets, and the startup funding environment. It provides data on consumer behaviour, distribution channels and competitive dynamics.
Key findings
Generative AI has reached mainstream adoption: 40% of U.S. travellers used gen AI tools in 2025, an 11-point jump year-on-year. AI users skew younger, wealthier and more frequent, spending significantly more. Millennials lead adoption, using AI to cut through information overload while validating choices via friends, family and reviews. About one in three U.S. and European travellers now use GenAI; 78% say it improves trip planning. Satisfaction is high but trust remains mixed, especially around booking.
Loyalty in travel is fragmenting: fewer than half of U.S. leisure travellers claim a go-to brand, and most will switch for price, fit or novelty. Long-term trust, value and consistency matter more than elite status or high spend. Novelty—especially among Gen Z, millennials and luxury travellers—often eclipses frequency. Loyalty programmes alone cannot retain customers; fundamentals like value, convenience and experience must be met first.
Travel agents remain relevant: 16% of U.S. travellers used an agent in 2025. Younger consumers are surprisingly more likely to engage agents for flights and complex trips, valuing convenience, trust and better options. Agents who align digital tools with younger travellers' expectations for tailored service may find growth opportunities.
Travel startup funding collapsed to $3.5 billion through Q3 2025 (decade lows), yet AI democratises technical barriers. Nearly every startup experiments with generative AI; competitive advantage no longer rests on technology alone. Investors prioritise distribution, customer access and sustainable unit economics, suggesting AI-native companies may become category leaders once capital confidence rebounds.
U.S. traveller spending has tightened as Americans weigh travel against competing financial priorities. Younger travellers, now the largest market share, are cost-conscious and seek tools showcasing clear value. Price transparency, credible comparisons and flexible digital interfaces have become new currencies of loyalty.
Key numbers
| Metric | Value |
|---|---|
| U.S. travellers using generative AI for trip planning | 40% |
| U.S. and European travellers using GenAI to plan or enhance trips | ~33% |
| Travellers saying GenAI improves trip planning | 78% |
| U.S. leisure travellers claiming a go-to brand | Fewer than 50% |
| Travel startups funding raised | $3.5 billion |
| Global travel market value | $1.67 trillion |
Figures as published in the source; forecasts and survey results are labelled as such in the note.
Why it matters
DMOs & destinations
AI is reshaping how travellers discover destinations: search engines and OTAs dominate choice, especially among younger users. DMOs must optimise visibility in AI planning tools with accurate, compelling content. Destination selection increasingly relies on personalised experiences and budget-conscious messaging; target younger, digitally-native audiences with transparent value propositions.
Hotels & hospitality
Loyalty programme redesign is urgent: guests value flexibility and novelty over frequency rewards. Rebalance programmes to recognise consistency alongside exploration; emphasise value and convenience over elite tiers. Integrate AI-powered booking, personalisation and in-destination support. Travel agents remain meaningful for complex bookings; maintain strong agent relationships.
Travel tech & distribution
AI-native startups are reshaping competition: nearly all experiment with GenAI, commoditising technology. Distribution, customer acquisition and unit economics matter more than technical innovation. Agentic AI and autonomous booking are emerging; prepare for a post-interface world guided by digital identity. Emphasise price transparency and flexible tools to capture cost-conscious, younger travellers abandoning traditional loyalty.
Methodology and limits
Phocuswright published 33 research reports in 2H25 using surveys of U.S. and European leisure travellers, proprietary startup funding database analysis, desk research and expert interviews with travel entrepreneurs. Market sizing data for 2025 and 2026 is projected. This brief is based on the publicly available summary only; full reports require individual downloads on Phocuswright's platform. Sample sizes and exact survey periods are not specified.
Official source
The report is © Phocuswright. This brief is an original editorial summary by TourismIntel — it quotes only figures published in the source and never reproduces the document.
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Related reports
Phocuswright's Travel Forward report projects the global travel market to reach $1.67 trillion by 2026, sustained by robust demand across regions despite economic headwinds. Online bookings are forecast to grow 8% to $1.07 trillion in 2025, with Asia Pacific leading OTA growth at 36% of sales.
Phocuswright's 'The AI-Native Edge: Travel Startups 2025' examines how artificial intelligence is reshaping travel technology entrepreneurship despite a paradoxical funding environment.
Phocuswright's Travel Innovation and Technology Trends 2025 positions generative AI and digital identity as transformative technologies reshaping travel at a scale comparable to the internet and personal computer revolutions.
Phocuswright's Global Travel Market Report 2025 documents a travel industry fully recovered and entering a new growth phase. Global travel gross bookings reached US$1.6 trillion in 2024 and are projected to approach US$1.8 trillion by 2027, driven by digital adoption and sustained leisure demand.