Dec 24, 2024 • 7 min read
Need to know: The 6 top travel trends for 2025
06.12.2024 - 23:19 / thepointsguy.com
It has been a remarkable few years of changes in the travel landscape. We saw a dramatic surge in travel demand after the peak of the coronavirus pandemic, and there appears to be no letup in sight.
Flights remain full and expensive, with travelers growing increasingly interested in booking trips to international and more remote destinations.
Our travel habits have changed, too: They are shaped by changing global trends, driven by FOMO thanks to social media and even influenced by the strength of the U.S. dollar. Toss in climate change, concerns about overtourism, fluctuating prices, loyalty program devaluations and increased ancillary fees, and it's clear that a lot is happening in the travel space.
Of course, one thing hasn't changed a bit. Our collective desire to connect with others remains even more powerful and our love for travel has grown even stronger.
Here are the top trends TPG is seeing across the industry — and what they mean for travelers in 2025.
Check out all of the details on TPG's 2025 Travel Trends page.
People are spending more on travel than they did before the pandemic, and it's not necessarily purely due to higher airfare and hotel prices.
It's true that compared to 2019, hotel prices have increased more than 10%, recreation costs are up 19% and the cost of food and beverage is up 29%. The only travel expense to decline in the past five years is the price of an airline ticket, down more than 6%. But year over year, both airfare and hotel prices are down.
The flood of TikTok and Instagram travel influencers is fueling the desire, especially among younger generations, for international travel. Younger generations are more likely to take longer trips to overseas destinations, which generally cost more than domestic trips.
People are also taking longer vacations — 5 1/2 days on average in 2024 versus 4 1/2 days in 2020. International destinations remain popular as well, and travelers are contributing massive amounts of revenue to the economies of the countries they visit.
According to the World Travel & Tourism Council, the U.S. remains the most powerful travel and tourism market, with international spending contributing $2.36 trillion to the American economy. The top five nations in travel and tourism revenue (in U.S. dollars) are:
1. U.S. ($2.36 trillion)
2. China ($1.3 trillion)
3. Germany ($487.6 billion)
4. Japan ($297 billion)
5. U.K. ($295.2 billion)
Despite the expected increase in travel costs, 66% of the people TPG surveyed are more interested in travel than they used to be. The desire to travel and see the world hasn't waned, but what people prioritize when booking these trips is shifting.
Read more: What will travelers spend more money on in 2024
Today's travelers are
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