11 Industry Trends Shaping Traveller Decisions in 2025

It’s no surprise that AI is the buzzword of 2025. Of course, it’s also the topic popping up in conversations across the tourism and hospitality sectors. The technology available to travellers today is moving at light speed and having a large impact on decision-making for people worldwide.

Something that used to take multiple days of planning now takes mere minutes and staying relevant as a travel brand is definitely not for the faint of heart. The good news is that international travel is returning to (and perhaps even exceeding) pre-pandemic levels. This is a prime opportunity for hotel marketers and hospitality brands to bring these 2025 trends into focus.

Trend 1: Luxury on a Budget

‘Treat yourself’ is no longer a trend making the rounds on social media. It has become a pillar of decision-making for travel. Today’s travellers are rewriting the rules with a critical eye on both budget and experience. And though affordable luxury sounds like an oxymoron, Booking.com's forecast says otherwise. By looking for unique ways to get around the high costs of a luxury vacation, today’s travellers have created a new way of booking experiences without breaking the bank. This might mean booking in destinations that are a short distance away versus choosing a destination farther away that can’t promise a meaningful experience. The concept of ‘luxury’ is being reimagined and redefined. Guests are less impressed with pomp and circumstance and more concerned with authentic, personalised offers.

And while companies are embracing and enjoying the benefits of this market shift, airlines are pivoting to meet the standards of both ‘luxe-on-a-budget’ travellers while crafting unique offers for ‘luxe-without-a-budget’ travellers. These range from long-haul budget flights with seats that don’t recline to in-flight double beds and elevated (no pun intended) dining experiences.

Even airline lounges are getting a major upgrade. With the exclusivity bar being raised even higher, big-ticket passengers demand more hyper-personalisation and seclusion. La Premier Lounge even prepared for the Paris Olympics by curating an “ultra-exclusive” experience with a hotel-style suite complete with butler service. Perhaps an opportunity for hotels to partner with airlines in a new way?

Trend 2: Noctourism (Night Tourism)

Noctourism focuses on after-dark and often nature-led activities around the world. From night museum tours to midnight food markets, this trend is for those who are not satisfied with traditional attractions and want to experience travel in a new light—or the absence of it.

This concept isn’t new. People have been heading to Iceland and Norway for generations just to get a small glimpse of the Northern Lights. What is new is the promise of a connection to nature and the cosmos. It's a gentle form of escapism that allows travellers to step outside their comfort zones and into the most unbelievable environments.

These once-in-a-lifetime experiences, like falling asleep in the Sahara Desert with an unobstructed view of the Milky Way, or a moonlit safari in the Okavango Delta are becoming more accessible to travellers across different budgets. And if you could swap out a 2-day tour of Rome to instead start a fire at a Viking festival in Shetland, why wouldn’t you?

Trend 3: Sustainable and Slow Travel

As you can tell, traditional sightseeing is no longer a focus. Travellers today are more conscious about the effect they leave and they are more invested in the way they spend their time. This shift towards sustainable travel is not just a trend, but a transformation in the way we perceive and engage with the world. In fact, these types of travellers are willing to raise their budget if it means offsetting their carbon footprints.

In parallel, there has also been an uptick in ‘slow travel’. This encourages visitors to spend more time in one destination, making deeper connections with local people and environments. Even ‘workations’, made famous by the digital nomad and remote work community, can be considered a more sustainable and mindful way of travelling. This aligns perfectly with the growing consciousness about the impact of tourism on destinations around the world.

Sustainable tourism is gaining serious momentum with innovative examples from across the globe. From carbon-neutral flights to hotels powered by renewable energy, today’s traveller is aware of their ecological footprint and seeks to minimise it at every opportunity. From participating in coral reef restoration projects and joining community clean-ups to choosing accommodations that reinvest in local ecosystems. Visitors are no longer passive observers but instead are active participants in preserving and celebrating local heritage.

Trend 4: Brand Transparency

There’s nothing worse than spending time to plan a trip, calculating the finances, and then stumbling on piles of hidden fees when you are about to book. The feeling of betrayal is real. In fact, 44% of people believe that the travel industry actively misleads customers in regard to pricing.

Transparency has become the cornerstone of customer trust and loyalty across all industries; putting a critical lens on travel and hospitality. Gone are the days of fees hidden between the fine print. Travellers today expect to book flights or hotel rooms where the pricing is precise, the cancellation policies are clear, and the reviews don’t seem like they were written by bots.

Technology has played an important role in this transition with tools that offer real-time price breakdowns, interactive policy explanations, and seamless booking processes that leave no room for guessing. The result? Guests tend to feel more respected, informed, and genuinely excited about their upcoming trips.

Trend 5: Calm-cations

If 2024 was the year of burnout and overstimulation, 2025 is the year of prioritising mental health and fresh air. And with the digital detox movement gaining significant traction, travellers are yearning to disconnect from their devices and see the world without a screen. If anything is crystal clear about travel behaviour in recent years, it continues to be much more intentional. Travellers want to fully immerse themselves in the experiences they’ve booked and are actively going offline to do so.

As a result, “calmcations” have risen in popularity. This is when people want to go on a trip and come back feeling transformed. They’re vacations, but they’re also mental health resets: from silent retreats in the mountains, remote beach escapes, or a tech-free cabin where the only entertainment is a good book and the view from the window.

As travellers invest in experiences, they are choosing those that offer real opportunities for relaxation, rejuvenation, and meaningful engagement with their surroundings. Besides, does anyone really need another Instagram photo?

Trend 6: ‘Coolcations’

The rise of "coolcations" has tourists flocking to colder climates to escape rising temperatures. Instead of sweating in crowded Mediterranean hotspots, people are discovering the jaw-dropping beauty of places like Iceland, Finland, and the Baltic nations. Even the European Travel Commission predicts significant shifts in tourism patterns, with northern countries potentially gaining up to 30% more visitors, while southern destinations might see a decline in tourism.

At the same time, water-centric vacations are gaining popularity. About 36% of travellers are seeking destinations that offer both cooling relief and exciting aquatic experiences. Lakes, coastlines, and even more remote destinations with larger rivers are gaining popularity.

And while both of these behaviours started as a trend, they won’t be going away anytime soon. This could be a potential long-term transformation for the industry as a whole; driven by climate change.

Trend 7: ‘Destination Dupes’

‘Destination dupes’ offer more affordable and less crowded alternatives to popular global destinations. Travellers are choosing lesser-known locations that provide similar experiences without the crowds and high costs. Think: Albania instead of Greece.

Expedia reported that searches for destination dupes have more than doubled, with some locations seeing heavy increases. For example, searches for Taipei surged to 2,786%, while Pattaya rose 249%. It’s safe to say that destinations that were once considered “off the beaten path” are now very much mainstream.

And who’s to say that these ‘dupe’ destinations aren’t equal to or better than their highly visited counterparts? They offer similar experiences without the drawbacks of over-tourism and, as a bonus, are typically half the price.

Trend 8: Nostalgia Travel

Imagine returning to the beach where you built your first sandcastle or the theme park where you gathered the courage to ride your first roller coaster. This is nostalgia travel. It's not just about revisiting a place – it's about reconnecting with a piece of yourself.

Parents are taking their children to the spots that built their core memories. Idyllic seaside towns and amusement parks with wooden rollercoasters; these trips are a bridge between past and present, allowing adults to relive cherished memories while creating new ones with their families.

The hospitality industry has embraced this trend wholeheartedly and has actually got pretty creative. Retro is an understatement when some destination experiences feel like a step into a time machine. Think vintage board games in the lobby, arcade machines, and wallpaper that looks like your mother’s living room. Heck, you can even rent a Polly Pocket home on Airbnb!

It's so much more than a trend – it's travel driven by emotion. And who doesn't want to feel like a kid again every once in a while?

Trend 9: Experiential and Event Tourism

You would never think that the name Taylor Swift and tourism would end up in the same sentence, but that was exactly the result of her Eras Tour. It generated an estimated $10 billion and visited 20 different cities around the world.

People are planning their trips around specific experiences with 47% of travel being planned around a singular event. Maybe it’s catching that once-in-a-lifetime music festival in Amsterdam, participating in a traditional tea ceremony in Kyoto, or booking an international flight for when the Backstreet Boys finally reunite. At the end of the day, these aren't merely vacations. They're core memories; where the destination becomes secondary to the experience itself.

Trend 10: Solo Travel

The travel industry is also witnessing a surge in solo vacations. This reflects a desire for empowerment, self-discovery, and unique experiences tailored to individual preferences. In fact, 76% of Gen-Z and Millenial travellers planned solo trips last year. Cities like Seoul, with its vibrant street food scene and cutting-edge technology, and Kathmandu, offering spiritual retreats and breathtaking Himalayan vistas, are top choices.

Solo travel empowers individuals to explore the world on their own terms. This encourages personal growth, and creates unforgettable memories and stories to take back home with them. For the solo traveller, priorities are security, cultural immersion, and opportunities for personal growth. In response, the industry is prioritising safety and fostering a sense of community among solo travellers. Many destinations, with hostels at the forefront, are committed to creating safe spaces where solo adventurers can connect with like-minded individuals.

Trend 11: AI-Powered Travel Planning

Imagine a voice-activated travel agent at the palm of your hands, tailoring hyper-customised itineraries in a matter of seconds; paired with hotel chatbots that already know what you want to ask about your booking before you even do. It knows you love aesthetic coffee shops, hate crowded tourist traps, and activities that fit within your budget.

With one out of three travellers using or planning to use AI for their travel planning, gone are the days of sifting through guidebooks and browsing countless websites to find travel inspiration. Planning itineraries in 2025 isn't just about destinations anymore. It's about creating experiences that feel like they were designed just for you.

Today's AI tools can analyse mountains of data to craft tailor-made travel plans that align perfectly with preferences, budgets, and time constraints. These algorithms consider factors such as past travel history, social media activity, and even real-time data to suggest activities and destinations that resonate with each traveller's unique profile.

And the travel industry is finding unique ways to adapt. From using AI to provide a better night’s sleep for guests to the rise of AI travel agents, this technology is revolutionising every aspect of tourism. And as AI evolves, it promises to deliver increasingly sophisticated and intuitive experiences. As a result, it seamlessly guides travellers from initial inspiration to their perfect itineraries.

Conclusion

The key themes around booking decisions in 2025 are intentionality, authenticity, and individual empowerment. Technology is not replacing human experience, but enhancing it by offering hyper-personalised journeys. Modern travellers are seeking more than just destinations to check off of a bucket list; they’re seeking meaningful, personalised experiences that align with their values, mental well-being, and global consciousness.