Is Travel Demand Slowing—or Simply Shifting?

Walking the halls of Bellagio, Aria and Vdara in Las Vegas final month, there was a buzz of pleasure within the air as journey advisors, suppliers, media and anybody else with their toes within the journey trade networked, performed enterprise, gained data, and so on., in the course of the 2025 Virtuoso Travel Week.

Optimism for journey—even in these unsure instances—was evident all through the convention, however nonetheless, the query many people had on our minds was: Is journey demand slowing—or simply shifting?

This was the subject at hand throughout Virtuoso’s State of Travel in 2025 press convention, moderated by Misty Belles, Virtuoso’s VP, Global Public Relations. Right out of the gate, Belles acknowledged that, “Travel is a mixed bag right now.  We’re all hearing the news. We’re reading the reports. We’re even writing the stories about how travel is down, especially to the U.S. and it makes sense. Travel is susceptible to geopolitical situations, to economic instability and to consumer confidence. But at the same time, our advisors are telling us that they are incredibly busy, almost busier than ever…there appears to be either a disconnect or at least another side of the story.”

According to Virtuoso’s newest findings, that are primarily based on its knowledge warehouse of $90 billion in transactions and an ongoing sequence of advisor and client surveys, journey could be very strong. In truth, Virtuoso is reporting that total gross sales are up 12 % for January via June when in comparison with the identical timeframe in 2024, with, motels seeing a virtually 26 % improve, climbing to greater than 33 % within the second half of the 12 months. While all journey classes present progress, in line with Virtuoso, cruise and tour bookings are projected to see a gentle rise. In truth, Virtuoso’s client survey knowledge signifies 30 % of luxurious vacationers from the U.S. and 20 % from Canada plan to cruise throughout the subsequent 12 months, and so they anticipate to spend on luxurious sailings. Virtuoso future cruise gross sales one to 2 years out that exceed $50,000 per reserving are up 43 % in comparison with the identical time final 12 months. Overall, future journey bookings within the $50,000 and above class are up 35 % in comparison with 2024. 

That mentioned, Belles did word that “there are pockets where travel has indeed softened. Overall, though, what we have learned is that luxury travel just behaves differently and we know that intuitively, but now we have the data to support that as well.”

In truth, opposite to what the World Travel & Tourism Council (WTTC) is forecasting that the U.S. financial system is about to lose $12.5 billion in worldwide traveler spend this 12 months, Virtuoso’s findings point out that the U.S. stays a “top travel destination for our [luxury] travelers,” says Belles. Inbound journey gross sales to the U.S. have seen a modest uptick of 4 % for January to July this 12 months, whereas fall gross sales are up 27 %.

And U.S. vacationers might be sticking near house this fall, in line with knowledge revealing the “top countries for fall travel” as our personal yard is the most well-liked in that class, adopted by Italy, France, Mexico and the UK. And the “festive travel top 10” listing for 2025 is topped by U.S., adopted by “warm weather favorites” as Belles famous, comparable to Mexico, Anguilla, Costa Rica, Turks & Caicos, St. Barths, The Bahamas and Cayman Islands. Also on the listing, you’ll discover Canada and France.

Virtuoso reviews its fall bookings are up 30 % with gross sales 39 % above final 12 months, adopted intently by festive season bookings 35 % greater than 2024’s strong vacation interval and gross sales up by 38 %.

What’s Trending
The want for extra impactful journey continues to construct, with 77 % of Virtuoso advisors surveyed reporting that their shoppers are extra thinking about reserving sustainable journey than they had been simply 5 years in the past. Across all generations, 64 % of high-end vacationers mentioned they’re thinking about making sustainable journey selections throughout their journeys, with 42 % prepared to pay extra for firms which have adopted environmentally pleasant philosophies and practices. While Gen Z and Millennials are main this cost, it’s Boomers who appear most invested in counteracting overtourism with their journey selections. 

Added Belles, “Sixty-eight percent of advisors said that they feel like their clients understand the positive impact of their travels, while about 60 percent said that their clients understand the potential negative impact with their travel. And if you’re like me and you wondered just how much carbon offsetting really factors into travel planning, I’m sad to say not as much as we would like right now, but it is at least increasing.”

Virtuoso’s surveys level to the truth that on the subject of U.S. vacationers particularly, 30 % plan to cruise within the subsequent 12 months; 39 % plan to journey extra in 2025; 76 % journey to loosen up/disconnect; and 49 % have an affinity for sustainability.

“Domestic journey is all the time sturdy throughout the U.S. [for U.S. travelers} so we see that continuing, though, interestingly, it’s down just a little bit compared to where it was year over year.”

Europe and the Caribbean are still popular destinations for U.S. travelers, with many looing to go to the beach; explore a city; go on a cruise; visit a museum or take a historic tour and head out on a culinary adventure.

The reasons they travel? According to Virtuoso, U.S. travelers travel for “joy & happiness,” a “mental reset and refresh,” “curiosity & exploration,” “awe & wonder of nature,” and “anticipation & excitement.” The number-one thing they seek, though, is “relaxing/disconnecting.”

Among the more interesting trends is the rise of the “wander women,” which, according to Virtuoso, is reshaping the face of solo travel. Women now represent 68 percent of solo adventurers, with many of these travelers choosing to bypass over-touristed areas. The movement is particularly strong among women over 65.

Also, “coolcations” is still on an upward movement, with 79 percent of surveyed advisors agreeing that changing climate and/or extreme weather events and conditions affect travel planning and 55 percent reporting that their clients are choosing to travel at off-season/off-peak times due to the climate. Top motivations for travel include spending quality time with the family specifically multi-generational travel—with 53 percent of Virtuoso travelers saying they intend to travel with multiple generations within the next year. There is a 23 percent uptick in celebration travel as well, year-over-year.

When it comes to generational differences, Gen Z and Millennials use travel as a catalyst for personal transformation, seeking “meaning-making” experiences and gravitating towards dynamic, immersive opportunities. In contrast, older generations tend to favor specialized interests, placing a high value on comfort and relaxation. This generational divide is also evident in accommodation preferences: younger travelers gravitate towards villas and specialty accommodations like tents and lodges, options that offer both unique and experiential elements, while older generations seek out more refined comfort.

“Younger travelers are more interested in nature and ecotourism, romantic getaways, adventure, travel and shopping,” says Belles. “And when you look at the older generations, they prefer more accessible landmarks. They prefer to do things really at their own pace, while the younger generations look to be more active and more on the go. Also, our younger generations are much more interested in visiting Asia, where we see the Caribbean and some of the more traditional destinations appealing to slightly older demographics.”

Of utmost importance for travelers is an emphasis on safety and security. Seventy-five percent of Virtuoso clients say safety and security are of leading importance when planning travel, with 65 percent citing an added layer of protection as a top benefit of using an advisor, surpassing perks and upgrades, exclusive access and VIP accommodations.

Travel Advisors Are the Influencers for Virtuoso Travelers
Among Virtuoso travelers, bookings with travel advisors increased more than any other method. There’s a 76 percent sustained increase in the number of people seeking out a Virtuoso advisor this year. They point to their expert advice, their access, their advocacy, their accountability, the vaiue they offer and the time savings they provide as the reasons they’re booking with travel advisors.

“The older generations placed a premium on the practical attributes that a travel advisor provides, like attention to detail and sorting through legal requirements, [etc.],” mentioned Belles. “Whereas younger generations really appreciated more interpersonal traits like cultural sensitivity and ambition.”