During the last two weeks of January, we asked travel businesses a series of questions to gain insight into the travel sector to date in 2026. The results give us an interesting overview of the state of the travel sector. Here are the results.
Average prices stay strong
The survey confirmed the sector’s pricing resilience. Two-thirds (67%) of businesses reported increasing their average prices, with nearly 40% raising rates by more than 3.5% – effectively outstripping inflation. This suggests that, despite broader economic pressures, consumer demand for holiday spending remains robust, often outpacing other discretionary categories as more consumers look to front-load holiday costs with inclusive packages or demand higher-end trips.
Passenger numbers are more varied
Passenger volumes are following a similar, albeit slightly more polarised trajectory; while 55% of businesses are growing their customer base, a notable minority (28%) are seeing volumes contract. Reports of stickiness in the family market explain the gap seen by some companies, and coincide with shoulder seasons proving the most popular for January bookings.
New opportunities for 2026
Looking ahead, the industry’s focus has shifted decisively toward technology. AI adoption (56%) and systems improvements (55%) have emerged as the top opportunities, outpacing traditional product strategies like launching new destinations (45%). This indicates the market is prioritising margin protection and operational efficiency over pure footprint expansion in a competitive environment.
Challenges for travel businesses
38% of those polled cited competition as a top challenge for their business, surpassed only by economic uncertainty (52%), which has dominated the landscape for some time now. Businesses are less concerned with finding staff or operational hurdles, and more concerned with rising costs in both areas, driving a defensive push toward tech-led efficiency.
Most popular departure months
September 2026 has emerged as the top departure month, with May following closely at 15%. This shift supports anecdotal evidence of a strong shoulder season and suggests that the traditional family summer rush has not yet peaked in the booking data.
Ultimately, the data reveals a travel sector that is prioritising value and efficiency, with 67% of businesses successfully maintaining high pricing despite ongoing economic uncertainty. As technology adoption and shoulder-season bookings take centre stage, the industry appears to be adapting its strategy to ensure long-term stability and growth in an evolving market.
We covered all of this and more in our latest TTC Insights Travelcast, available to watch on demand now.
If you would like board-level insights to help you make crucial business decisions, please get in touch. We’d love to help!
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