Overview
- Price increases are concentrated in premium segments, deepening a split between value and high-end offerings and squeezing the mid-market.
- Average long-haul business class tickets now cost $4,500, up from $4,385 in 2023, while economy fares edged lower, widening the gap between cabins.
- North American luxury hotel average daily rates rose 4.9% as premium hotel rates fell 1.8%, with even stronger luxury rate growth reported across Europe.
- Expedition cruise prices have climbed more than 20% since 2023 compared with a 5% rise for contemporary voyages.
- Demand remains resilient with 27% of travelers expecting to travel more in 2026 versus 6% less, as many shorten stays, plan more intentionally, and more than 60% expect to use travel advisors as their primary booking channel.