Saniya Zanpure

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.

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.

The Asia-Pacific region will likely continue its dominance in 2025, and with other markets showing slight year-on-year growth

We expect moderate growth through 2026, with the Asia-Pacific region once gain overtaking Europe and a pickup in business travel.