The growth of the travel industry is nothing short of extraordinary. From the resurgence of global tourism to the rise of tech-driven travel services, the sector is thriving like never before. In 2024, the industry surpassed pre-pandemic benchmarks, driven by evolving consumer preferences, technological advancements, and a renewed focus on sustainability. As we sail into 2025, the growth of the travel industry continues to set new records, with Australia, Asia-Pacific (APAC), and emerging markets leading in some sectors.
This article dives deep into the trends, updates, and predictions shaping the future of travel, covering everything from aviation and cruising to hospitality and tech-driven services. Buckle up—it’s going to be an exciting journey!
The Growth of the Travel Industry in 2024
2024 was a landmark year for the travel industry, with record-breaking revenue, passenger numbers, and innovation across sectors. Here’s a snapshot of the key developments:
General Tourism: A Global Resurgence
The global travel industry generated USD 1.9 trillion in export revenues, a 3% increase over pre-pandemic levels. The Middle East regions were at the forefront of this recovery. While Asia and the Pacific recovered 87% of its pre-pandemic arrivals.
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- Australia: Nearly half (49%) of Australians prioritised saving for travel in 2025, with a third saving for up to a year to fund their trips. Travel remains a top financial priority, with post-Christmas travel enthusiasm driving domestic and international bookings. (Source: Money.com.au, via Travel Weekly, January 2025).
- Vietnam: Recorded 1.5 million international arrivals in January 2025, the highest since its 2022 reopening. South Korea, China, Taiwan, and the US were key source markets, contributing to a 10.2% YoY increase in hospitality and dining revenue. (Source: VNEconomy, January 2025).
- Thailand: Welcomed 1.3 million foreign tourists in the first two weeks of January 2025, with Lunar New Year tourism revenue projected to surpass 40 billion baht. (Source: Thailand Business News, January 2025).
Cruise Industry: Sailing to New Heights
The cruise industry rebounded strongly in 2024, with Australia and APAC regions leading the way.
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- Australia: Cruise tourism generated a record AU$8.4 billion, a 49.7% increase from the previous year. Sydney led international embarkations, while Queensland’s ports in Brisbane and Cairns emerged as key contributors.
- China: The cruise sector rebounded with 1.2 million passengers in 2024, recovering to 58% of pre-pandemic levels. A 15-day visa-free policy is expected to boost international arrivals further. (Source: Global Times, July 2024).
- Thailand and Vietnam: Both countries are investing in infrastructure upgrades to enhance their appeal as regional cruise hubs. Thailand’s cruise market revenue is projected to reach US$25.24 million by 2029, while Vietnam’s is expected to hit US$8.94 million. (Source: Statista, January 2025).
Aviation: Soaring to New Heights
The aviation industry experienced a remarkable recovery in 2024, driven by increased passenger volumes and sustainability initiatives.
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- Australia: The aviation sector generated AU$70 billion, a 25% YoY increase. Sydney Airport handled 48 million passengers, while Melbourne and Brisbane saw double-digit growth. (Source: Tourism Research Australia, January 2025).
- China: Domestic travel reached 650 million passengers, recovering to 85% of pre-pandemic levels. Shanghai Pudong and Beijing Daxing airports led the growth. (Source: Global Times, December 2024).
- Sustainability: Qantas and Virgin Australia are leading the charge in sustainable aviation fuel (SAF) adoption, targeting a 10% emissions reduction by 2025. (Source: Qantas Media, January 2025).
Hospitality and Accommodation: Redefining Guest Experiences
The hospitality sector embraced sustainability, technology, and luxury to meet evolving traveller demands.
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- Australia: Tourism generated AU$176.7 billion, with wellness tourism spending growing by 20.9% YoY. Hotels are adopting eco-friendly practices, such as reducing single-use plastics.
- Vietnam and Thailand: Both countries are focusing on eco-tourism and luxury accommodations, with Vietnam’s hotel market projected to generate US$1.67 billion in 2025. (Source: Statista Travel & Tourism Reports).
- Global Trends: Online bookings are expected to account for 85% of hotel revenue in Japan and 69% in Singapore by 2029. (Source: Statista Travel & Tourism Reports).
Tourism Activities and Experiences: The Rise of Immersive Travel
Travellers are prioritising unique and immersive experiences, from cultural tours to adventure activities.
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- Australia: Domestic tourism contributed AU$51 billion, with First Nations tourism growing significantly.
- APAC: Thailand and Vietnam are leading in eco-tourism, with revenue from tourism activities projected to reach US$19.93 million and US$6.99 million, respectively, in 2025. (Source: Statista, January 2025).
- Global Trends: 65% of travellers are more likely to travel for events, with festivals and concerts driving demand. (Source: SiteMinder Changing Traveller Report).
Tech-Driven Travel Services: The Digital Revolution
Tech-driven services like OTAs and AI-powered tools are transforming travel planning and booking.
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- Australia: 36% of travellers rely on search engines for hotel research, up from 26% in 2024. (Source: SiteMinder Changing Traveller Report).
- APAC: OTAs are expected to drive 42% of bookings globally, with Vietnam, Thailand, and China projecting over 66% of revenue through online channels by 2029. (Source: Statista & SiteMinder).
- AI Integration: Generative AI tools like ChatGPT and DeepSeek are customising trip plans and enhancing customer experiences. (Source: MarketsandMarkets™, Jan. 10, 2025,).
January 2025 Updates: Setting New Trends
As we step into 2025, the growth of the travel industry is being shaped by emerging trends and innovations:
- Workations: The hybrid work model is driving demand for long-term stays, with APAC destinations like Singapore and Thailand leading the way. (Source: Torrens University).
- Sustainability: Green certifications and carbon-neutral initiatives are influencing bookings, with travellers prioritising eco-friendly options.
- AI-Powered Travel: Generative AI tools are expected to exceed 50% adoption in travel planning by the end of 2025. (Source: Phocuswright, via PhocusWire, Jan. 2, 2025).
Predictions for 2025 and Beyond
The growth of the travel industry shows no signs of slowing down. Here’s what to expect:
- Sustainability: Eco-tourism and green certifications will dominate, with travellers seeking carbon-neutral accommodations and experiences.
- Technology: AI-powered tools, autonomous agents, and eVTOLs will revolutionise travel planning and urban mobility.
- Experiential Travel: Multi-generational holidays, wellness retreats, and adventure tourism will continue to shape traveller preferences.
Download our Future of Search in Travel white paper for more 2025 and beyond predictions.
Growth of the Travel Industry
The growth of the travel industry in 2024 and beyond is a testament to its resilience and adaptability. From Australia’s booming domestic tourism to Asia’s focus on eco-tourism and digital innovation, the sector is thriving like never before. As we look ahead to 2025, one thing is clear: the future of travel is bright, diverse, and full of possibilities.
So, where will your next adventure take you?
