2019 marks a decade since the US travel industry emerged from the depths of economic recession. And what a decade it’s been. Over the past ten years, the recovery collided with an economic turning point in global emerging markets— fueling a historic burst in travel demand felt by segments across the travel industry.
The numbers tell the story well. From 2009 to 2017, US hotel gross bookings grew from $116 billion to $185 billion (see figure 1). Airline revenue jumped from $155 billion to $222 billion.1 Other sectors, from cruise to ground transportation and restaurants, also benefited as US consumers reconnected with an inherent love for travel, international travel demand flourished, and more companies leaned on the power of business travel to help their organizations connect and grow.2 But growth was not limited to traditional players. It’s also been a remarkable decade for travel tech. Digital innovation helped form a lattice for entirely new segments to enter the market—and thrive. Some private accommodation and ride-hailing brands just finding their legs in 2009 now sit side by side with the titans of travel. It’s easy to lose perspective on just how much technology has shaped travel in such a relatively short time. In 2009, the first hotel and airline apps were just hitting the market. Instagram and iPads didn’t exist. Most travelers scoured newspapers and magazines for vacation rentals. Taxis were hailed by hand, and small luxury hotels were among the only businesses that could attempt to create a personalized experience for every guest—and even then, mostly in the physical realm. Perhaps even more remarkable, ten years of travel innovation could be dwarfed in the next three or four. Unprecedented growth, driven by a robust economy, rising global consumer purchasing power, and digital innovation, however, comes with strings attached. While market conditions are generally expected to remain strong in 2019, significant challenges capable of throwing the US travel industry off its growth trajectory loom on the horizon—many the unfortunate growing pains of an expanding industry.