Saniya Zanpure

The global airline sector is in a growth phase, projected to reach $949 billion by 2026, driven by strong leisure demand and the significant rebound of business travel.

The Skift Travel Health Index reveals a period of balanced growth in global travel, despite challenges in the hotel sector.

In May 2025, Skift Travel Health Index, at 102, indicates a period of balanced growth in the global travel industry. While the hotel sector faces challenges and revised forecasts, the strong performance of vacation rentals and steady growth in other segments paint an optimistic picture for global travel.

Even with Americans eager to visit Europe this summer, weak consumer confidence and currency headwinds at home are weighing down the broader recovery.

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.

The softening in inbound travel demand – especially from Canada – is being partially offset by domestic travel, which continues to show resilience.

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 U.S. vacation rental industry remains relatively stable. But there are a host of challenges: an international travel slowdown, economic uncertainty, and labor shortages.

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.

The global Skift Travel Health Index: February 2025 stands at 99, already indicating a 1% dip in travel performance in February 2025.