The overview: 2025 was a tale of two economies in travel. High-income consumers spent freely on premium and international trips, while low- and middle-income households opted for shorter travel closer to home.

That divergence is set to continue into 2026. The wealth effect is bolstering affluent consumers’ confidence, but economic uncertainty and the rising cost of living is prompting everyone else to rethink the frequency, distance, and cost of their travel.

Here are four travel trends to watch:

Premium carriers soar while budget airlines struggle to survive.

• The sharp divide in spending is favoring airlines like Delta and United, which offer a greater selection of premium seats and international destinations.
• Other carriers are trying to catch up: American Airlines is upgrading its fleet and adding new routes to Europe to capitalize on front-of-the-plane demand, while Southwest is trying to shed its low-cost roots by adding premium seats.
• Meanwhile, budget carriers face significant strain. Spirit, struggling to emerge from its second bankruptcy, told investors in August that there was “substantial doubt” about its ability to stay in business for another year.

Event-driven travel is gaining steam.

• More consumers are using events—such as a concert or a sporting competition—as an excuse to travel.
• Though Taylor Swift’s Eras Tour has ended, 2026 stadium tours from the likes of Ed Sheeran and Guns N’ Roses are likely to attract travelers from around the world, to the benefit of local retailers and restaurants.
• The FIFA World Cup is expected to bring anywhere from 1 million to 6 million international visitors to North America next year; those travelers are expected to stay for an average of 12 days and spend $416 daily, per an estimate by FIFA and the WTO.

Travelers turn to AI for trip planning.

• More travelers are now using AI tools like ChatGPT and Perplexity to get travel inspiration over traditional sources like newspapers and travel agents, according to a survey by travel tech company Amadeus.
• New AI capabilities and integrations from ChatGPT and Google make it easier for users to plan their trips without leaving the chat or search interface, and could be a gateway for consumers to test out agentic shopping capabilities.

International consumers rethink US travel.

• Trade tensions and concerns over border policies are causing foreign nationals to rethink trips to the US, creating revenue headwinds for hotels, restaurants, and retailers.
• Canadian visitors in particular are using travel boycotts to signal dissatisfaction with US trade policies. Border crossings from Canada into the US fell for the first 10 months of 2025, with no end in sight; that trend is particularly challenging for businesses on the border that rely on steady traffic from their northern neighbors.
• The World Cup could help offset some of those losses. Roughly 1 in 3 international visitors to the US next year will come for the soccer tournament, per Reuters, although visa issues could limit attendance.

Our take: Many of the trends that dictated travel spending in 2025 will remain in play in 2026. The sharpening divide in spending patterns between higher-income consumers and the rest of the population means that companies that cater to the affluent—like Delta and Marriott—will have the strongest gains.

At the same time, businesses have to be prepared for AI chatbots’ growing influence on travel decisions. Airlines, restaurants, hotels, and retailers must ensure they are discoverable on AI platforms, or else risk losing spending to those that do a better job of GEO.