BUSN 1133-Current Trends in Tourism-Unit 3: International Tourism Trends

Prioritizing Travel

72% of respondents in an American Express survey care more about having the right travel experience than the cost, and would rather save for a major trip than go out with friends.

Live Tourism

A major trend where trips are planned around events like concerts (e.g., Taylor Swift), sporting events (World Cup, F1 races), and natural phenomena (eclipses, Northern Lights).

Slow Travel

A travel style that emphasizes longer stays in destinations, allowing for a more immersive experience and promoting sustainable travel.

Artificial Intelligence (AI)

Computer systems that can perform tasks that normally require human intelligence, such as learning, problem-solving, and decision-making. In the context of travel, AI is used for trip planning, customer service, and personalization.

Economic Disparities

Europe is facing slow growth while the Middle East is experiencing significant investment in tourism. *"In Europe, slow growth remains the order of the day. China, too, is facing economic challenges while the Middle East continues its tourism investment full steam ahead."

Active Regulation

Governments are actively regulating the tourism sector, implementing tourist registration systems, taxes, and curtailing short-term rentals to address Overtourism.

Overall Recovery

International tourism is largely recovery, with 2024 seeing arrivals reaching 99% of pre-pandemic (2019) levels. International tourist arrivals reached 1.4 billion in 2024, and receipts grew to an estimated USD 1.6 trillion (4% above 2019 in real terms)

Community Awareness

Local communities are becoming more vocal about the impacts of tourism, prompting better regulation and infrastructure planning.

Companies Embracing Sustainability

Many travel companies are setting climate targets to reduce emissions. "According to the World Travel and Tourism Council, 53% of 250 top travel businesses have set climate targets to reduce their emissions, up from 42% in 2021."

Soft Travel

Many travelers are focusing on self-discovery and mental health, often leading to unplugging and "digital detox" retreats. Hilton research found that more than one in five travelers will make trips for self-discovery or mental health in 2025, a trend Hilton dubs "soft travel."

Off the Beaten Path

Many travelers are seeking less-known destinations to avoid Overtourism.

Travel is the discretionary purchase

People are most excited to splurge on travel vs. other discretionary purchases. It outranks dining, electronics, jewelry, and more.

Regional Focus

Region-specific expertise is critical, as a one-size-fits-all approach will not be effective. *"These disparate trends mean that region-specific expertise will likely be rewarded over a one-size-fits-all approach.

Short-Term Rental Scrutiny

Short-term rentals are facing increased scrutiny, with cities like Barcelona banning them in favor of hotels. This may include new taxation of short-term rentals.

Uneven Recovery

The Middle East has already surpassed pre-pandemic levels of tourism, while Asia-Pacific is still recovering. *The Middle East remained the best-performing region in 2024, with arrivals 32% above 2019 levels and 1% above 2023. Africa welcomed 7% more tourists than before the pandemic.

Projected Growth

The UNWTO projects a 3-5% growth in arrivals for 2025, contingent on stable economic conditions, receding inflation, and no escalation in geopolitical conflicts.

Authenticity & Immersive Experiences

The definition of luxury is shifting towards authentic and immersive experiences rather than over-the-top opulence.

"Normalization" not "Revenge Travel"

The explosive growth of "revenge travel" seen in 2023 is giving way to a more steady and sustainable growth in 2025. "If 2023 was the year of revenge travel, and 2024 was one of normalization, what will 2025 bring for the travel industry? Likely a slow and steady baseline of growth."

Shoulder Season

The period between peak and off-season travel, which can offer more sustainable tourism options and potentially lower prices.

Overtourism

The situation where a destination becomes overcrowded with tourists, causing negative impacts on local communities, the environment, and the visitor experience.

Live Tourism

The trend of planning trips around specific events or experiences (like concerts or sporting events) rather than a specific destination.

Wellness Tourism Growth

The wellness tourism market is projected to grow significantly, with travelers looking for relaxation, spa treatments, and health-focused trips. The global market for wellness tourism is projected to surpass $1.3 trillion by 2028, up from $830 billion in 2023.

Cultural Differences

There are distinct differences in tech adoption and consumer behavior across regions such as Asia and North America.

Longevity Retreats

There is a growing interest in retreats focused on health and designed to extend lifespan. Booking.com predicts that longevity retreats will be a top trend with travelers planning focused on health and designed to extend their lifespan. 60% of survey respondents said they were interested in this kind of trip.

Pet-Friendly Travel

There is an increased demand for pet-friendly travel options, with many hotels adapting to accommodate pets. Pet travel is a growing industry set to double over the next decade to 4.6 billion.

Cooler Climates

Travelers are increasingly seeking destinations with cooler climates as an alternative to traditional beach vacations, a trend also noted as a "coolcation".

Desire for New Experiences

Travelers are looking to explore new destinations and indulge in luxury rooms and experiences where possible. In the new year, the consumer intends to travel more often and spend more on travel. They want to explore new destinations, and, where possible, indulge in luxury rooms and experiences.

Growing Concern

Travelers, particularly younger generations (Gen Z), are increasingly focused on sustainable travel and reducing their environmental impact.