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New year, fresh travel intentions. If 2023 was characterized by revenge travel, and 2024 marked a return to normalcy, what can we anticipate for 2025 in the travel sector? Possibly a gradual yet stable baseline of expansion. However, many hurdles and transformations will also arise.
Skift Research’s latest Global Travel Outlook 2025 provides an in-depth analysis of what the next year holds for the travel business. Included in the outlook is a five-nation survey: We consulted travelers from the U.S., UK, Germany, India, and China regarding their travel perspectives and budget allocations. Insights from these approximately 1,600 global travelers bode positively for the sector. On average, these participants plan to allocate 9% more towards travel expenses this year. Notably, travelers from India seem especially eager to travel—they anticipate spending 14% more, marking the highest increase in our findings.
These consumer-driven survey findings align with our revenue projections per sector for online travel, accommodations, airlines, cruise, and short-term rentals. Both approaches suggest moderate single-digit revenue growth for the travel industry in 2025. While this is below the revenge travel peak, with the IMF anticipating a global GDP increase of 3.2%, it still positions travel as a “GDP-plus” growth sector.
However, it’s important to note that not everything will progress smoothly. In the U.S., a significant power shift is occurring with Donald Trump set to return to the White House. The outcome remains uncertain, though travel executives are largely hopeful. In Europe, slow progress persists. Meanwhile, China is grappling with economic difficulties, whereas the Middle East is rapidly advancing its tourism investments. These varying trends suggest that expertise tailored to specific regions will likely be more advantageous than a one-size-fits-all strategy.
Overtourism and sustainable travel were sidelined during the pandemic. This will no longer be the case in 2025. Regulatory bodies are moving forward with rules against junk fees, Airbnb restrictions, and emission mandates being implemented. These traditional concerns will face fresh challenges in 2025. Companies must strive to maintain relevance amidst emerging competitors and a more skeptical traveler demographic. Investment in data and technology platforms will be essential, particularly concerning Artificial Intelligence and other innovative tools. Concerns regarding inflation and labor expenses persist as high priorities.
Nevertheless, don’t interpret these numerous challenges as a sense of defeat. Skift Research maintains a positive outlook. This leads us back to our guiding principle—the traveler.
Our survey findings indicate that the preference for spending on experiences rather than material goods continues to be robust. Travel remains the discretionary expense that individuals are most motivated to splurge on, surpassing dining, electronics, jewelry, and more.
In the upcoming year, consumers plan to travel more frequently and invest more in their travel endeavors. They seek to discover new locations and, when feasible, indulge in luxurious accommodations and experiences. Travelers are curating a 2025 filled with journeys that harmonize exploration, responsibility, and indulgence. Here’s toasting to that new start!
Explore the Skift Research Global Travel Outlook 2025 for further insights.
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