Americans continue to prioritize travel despite economic uncertainty, inflation concerns and global instability, according to the latest U.S. Travel Forecast from the U.S. Travel Association. The report projects steady growth for the industry through 2027, fueled largely by domestic leisure demand, while international inbound travel slowly regains momentum after setbacks in 2025.
Domestic Travel Continues to Fuel Industry Growth
The forecast projects total U.S. travel spending will reach a record $1.37 trillion in 2026 before climbing to $1.42 trillion in 2027. Domestic travelers continue powering the industry, accounting for 87 percent of all travel spending. Domestic leisure travel outpaces every other sector and will likely reach $909 billion in spending in 2026, building on gains seen throughout 2025.
“Travel continues to be one of the most resilient and essential sectors of the U.S. economy,” said Joshua Friedlander, Vice President, Research, U.S. Travel Association, in a press statement. “Even with inflation and broader economic pressures, Americans are continuing to invest in experiences, reunions and business connections that happen through travel.”
International Travel Recovery Faces Challenges
While domestic demand continues to fuel the industry, international inbound travel remains one of the sector’s biggest hurdles. Inbound visitation declined in 2025 for the first time since 2020, falling 6.3 percent to 67.9 million travelers. International visitor spending also dropped 3.2 percent to $173 billion, driven partly by reduced Canadian visitation to the U.S.
The report forecasts inbound travel will rebound in 2026, with international visitation increasing 3.4 percent to 70.6 million travelers. However, the industry likely will not regain pre-pandemic international visitation levels until 2029.
Major global events—including the FIFA World Cup 2026, America’s 250th anniversary celebrations and future Olympic and Rugby World Cup events hosted in the U.S.—could help accelerate inbound tourism growth over the next several years.
At the same time, visa wait times, border policies and international perceptions of the United States continue creating challenges for the recovery of inbound travel.
- U.S. travel spending is projected to reach $1.42 trillion by 2027
- Domestic leisure travel spending is forecast to hit $909 billion in 2026
- International visitation is expected to recover to 70.6 million travelers in 2026
- The U.S. travel trade deficit reached $72 billion in 2025
- International travel recovery is not expected to return to 2019 levels until 2029Â
