Source: Deloitte Development LLP

Travel and tourism now account for more than one-tenth of global GDP. What trends can help hospitality and travel companies harness even more growth?

Key US travel industry growth drivers for 2018

Travel and tourism is one of the world's fastest-growing sectors, with bookings hitting close to $1.6 trillion in 2017.1 A strengthening global economy lies at the heart of industry growth. Each year, the global traveler pool is flooded with millions of new consumers from both emerging and developed markets, many with rising disposable incomes and a newfound ability to experience the world.

Below are just some of the forces poised to drive revenue for hotels, airlines, restaurants, and other players in the travel ecosystem.

  • Healthy consumer spending: Amid low inflation and low unemployment, the US economy seems poised to sustain 2 to 2.5 percent growth through 2018.2 Consumers are at the heart of that growth. Incomes are rising, along with home values and stocks. That points to more income and more confidence to spend it.
  • Intense airline competition: Downward pricing pressures are at play thanks to a mix of low fuel prices, international competition, and low-cost entrants. That may be tough news for airline industry margins, but low fares drive spending throughout the travel sector.
  • Healthy corporate travel demand: Strong economies drive business activity. Business travel is projected to grow by more than 6 percent.3
  • From products to experiences: Travel is outpacing the demand for goods. Spending on recreation, travel, and eating out is up, while spending on many durable goods and staples like clothing is down.4

As always, success isn't guaranteed in 2018. Each of the travel segments have unique hurdles to overcome, but driving innovation and exploring new possibilities around the travel experience are some of the challenges that transcend the sectors.

Read the 2018 Travel and Hospitality Industry Outlook to learn more.

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