Summary of this article
eopolitical tensions and costs reshape global travel decisions in 2026
AI travel tools increasingly influence spending and trip planning globally
Indian cities witness rising share of corporate travel activity
In 2026, geopolitical uncertainty, volatile currencies and high energy prices have reshaped travel habits in leisure and business travel, according to the latest report from the Mastercard Economics Institute.
According to the report, The New Travel Equation: Macro, Machines, Motivation, global travellers are paying greater attention to affordability and flexibility in today's economic climate, where travel costs are increasing, and patterns are changing unrecognisably. It has also added that the use of AI-powered tools is growing among consumers to find new travel destinations, to compare prices and to plan travel more efficiently.
Changing Travel Patters Amid Global Uncertainties
The Middle East conflicts and energy market disruptions have impacted airline operations and travel planning in multiple regions.
Airlines in many countries had to reroute international flights due to the ongoing conflict, along with readjusting passenger capacity. Moreover, alternative travel hubs are gaining significant especially in Asia-Pacific and Europe. Europe bound traffic is using more direct flights; Asian hubs like Vietnam, Japan and South Korea have experienced major surge in recent times.
Among flight trends, Paris recorded the highest year-on-year growth in scheduled international seats for the June to September 2026 period, followed by Amsterdam, Brussels, Barcelona and Madrid. Abu Dhabi also remained among the leading destinations despite regional uncertainty, supported by earlier airline expansion plans.
Indian Cities See Higher Business Travel Share
The report pointed to rising business travel activity in several emerging hubs. Abu Dhabi topped the Business vs Leisure Momentum Index, with corporate travel accounting for 42 per cent of flight bookings.
Four Indian cities also featured among the top destinations. Corporate travel accounted for 28 per cent of bookings to Bengaluru and New Delhi, 26 per cent to Mumbai and 23 per cent to Hyderabad.
The report said these cities have seen a higher share of corporate spending on flights, hotels and dining, reflecting their growing role in global business travel flows.
AI Tools Influence Travel Spending Patterns
AI-based travel planning tools have begun shaping how consumers spend on travel, especially in discretionary categories such as hotels and cruises.
Data from US consumers subscribed to AI platforms showed that AI users allocate a higher share of spending towards travel compared to non-users with similar spending patterns. The report found that AI subscribers spent nearly twice the share of their wallet on accommodations.
Wallet share on accommodation among AI users ranged between 0.5 per cent and 2.75 per cent of total spending, compared with lower levels among non-AI users.
The report said destinations such as Perth and Leipzig have seen relatively stronger spending from AI platform users, suggesting wider exploration of non-traditional travel routes.
Spending Patterns Differ Across Nationalities
The report also highlighted strong differences in spending behaviour across nationalities visiting the same destinations.
In Japan, British travellers allocated more than 10 per cent of spending to rail and land transport, while Singaporean visitors spent 38 per cent on retail. South Korean tourists spent about 45 per cent more on nightlife compared to the average visitor.
In France, British tourists focused more on restaurants, while Swiss visitors prioritised shopping. In Spain, British travellers spent 32 per cent more on nightlife than the average tourist.
