The U.S. travel market started its new year with an exceptional achievement because travel agencies documented their first-ever USD 10 billion air ticket sales for January 2026. The Airlines Reporting Corp. (ARC) data shows that the milestone achieved a 7 percent increase from January 2025 and a 39 percent increase from December 2025. The increase in international air travel demand demonstrates strong interest among travelers who prefer flying to overseas destinations and traveling in premium aircraft compartments.

This record-breaking performance reflects the sustained optimism within the industry, with both leisure and business travel showing signs of recovery. With January marking the first time in history that air ticket sales reached such heights, the growth signals a positive outlook for the entire travel sector, especially for international travel.

Growth in International Travel and Premium Cabin Demand

U.S. travel agencies were not the only ones benefiting from this surge. The increase in international air ticket sales, which saw an 8 percent rise year-on-year, signals a growing appetite among travellers for global destinations. This trend has been mirrored by the increase in premium cabin demand, with first-class and business-class bookings also experiencing notable growth.

As international travel remains a key driver for U.S. airlines, this data indicates a renewed interest in long-haul travel experiences. Premium cabins, in particular, saw a 3 percent rise in average ticket prices, highlighting the preference for more luxurious travel options.

The travel industry’s ability to sustain these elevated levels of demand is crucial, as airlines continue to enhance their offerings, including more direct routes, better in-flight services, and increased frequency on popular international routes.

Domestic Travel Sees Modest but Steady Growth

In contrast to the significant growth in international trips, domestic air travel saw a more moderate 4 percent increase in January 2026 compared to the previous year. Despite this slower pace, domestic travel remains a critical part of the U.S. market, with more than 17 million trips recorded in January.

Many U.S. airlines have focused on enhancing their domestic networks, with a particular emphasis on connecting secondary airports to major hubs. These efforts have contributed to the overall increase in domestic travel demand, especially in regions where new route offerings have been introduced.

Ticket Price Increases Reflect Growing Demand

Air ticket prices have also been impacted by the rising demand for travel. The average economy ticket price rose by 7 percent, while the cost of premium cabin tickets increased by 3 percent. This uptick in prices is reflective of both the heightened demand for travel and the overall recovery of the travel sector from the global pandemic.

The growth in ticket prices also underscores the ongoing shift in consumer preferences, as more travellers opt for higher-end experiences. As airlines adjust their pricing strategies to meet demand, this trend is expected to continue, particularly in the coming months as we move into the peak travel season.

Technological Advancements and NDC Adoption

A significant factor contributing to this growth is the ongoing adoption of New Distribution Capability (NDC) technology, which allows airlines to offer more personalised, dynamic pricing and services. In January 2026, NDC transactions accounted for 20 percent of all ARC-settled transactions, a sharp increase from 16.5 percent in January 2025. This technological shift is reshaping how airlines interact with both travel agencies and consumers.

With 1,207 travel agencies reporting NDC transactions in January, the trend towards more dynamic, flexible pricing and ticket offerings is gaining momentum. This increased use of NDC aligns with the growing demand for more personalised travel experiences and better consumer value.

Impact on Travel Agencies and the Broader Travel Sector

The surge in air ticket sales also highlights the continuing importance of travel agencies in the broader U.S. travel market. While online travel agencies (OTAs) and corporate bookings showed slower growth, the traditional travel agency sector has proven to be a key revenue generator for airlines. Agencies, particularly those focusing on international travel and premium services, remain vital in connecting consumers to airline offerings, demonstrating their continued relevance in a rapidly evolving market.

Travel agencies are expected to continue driving sales as more consumers look for expert advice and tailored travel packages, especially for international and long-haul travel. The travel agency channel’s resilience bodes well for its future role in the tourism industry.

Strong Start to 2026 for US Travel Market

January 2026 has been a record-setting month for U.S. travel agencies, with USD 10 billion in air ticket sales marking a significant achievement. The robust growth in both international travel and premium cabin bookings highlights the recovery of the travel sector, with rising ticket prices and increased demand driving the market forward.

As the year progresses, the travel industry will continue its growth because more people will travel to international destinations while choosing high-end travel experiences. The travel sector receives its strong performance for 2026 because it provides positive results which benefit both agencies and airlines as they serve their expanding customer base.

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