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Travel is making a comeback. After taking a huge hit during the pandemic and the years following, the travel sector is soaring once again, cited to make a full recovery by the end of this year.

While this is great news for the travel industry, new challenges have emerged along with it. As H/L vice president and director of brand strategy, David Morrissey puts it: “Let’s be honest, the travel industry didn’t do itself any favours this year. There were too many headlines about aircraft safety issues, privacy and safety concerns with some vacation rentals, as well as mismanagement and bankruptcy for big-name budget airlines.”

But despite some negative press, he says “the travel industry is crushing it. It feels like we’re moving past that ‘revenge travel’ phase – the trips so many of us took these last few years to replace those that covid robbed us of. Now, we’re planning travel that’s more meaningful to us. Personally, I think that’s a wonderful thing.”

“The pandemic prompted many travelers to reassess their values,” shares Rachel Cobb, executive vice president of strategy and planning at Mythic. “Our research partners note that travelers place more value in unique travel experiences than they do on material possessions, resulting in cuts to discretionary spending to make more room in the budget for memorable vacations. Because of this, consumer expectations are sky-high, and when it comes to destination marketing, the onus is on brands to showcase the variety of experiences available to meet travelers' diverse desires.

“Travelers are multidimensional and seek vacation experiences that cater to everything from ‘relax’ mode to ‘having a cultural moment’ mode. Therefore, brands must not only understand individual consumer motivators but also proactively monitor trends. By using data analytics and customer insights, brands can tailor their offerings to align with consumer motivations and effectively highlight everything a destination has to offer through advertising.”

In order to do this, technology will take center stage, says Blake Kotenbrink, senior vice president and group director at Momentum Worldwide, North America. “Expect AI-driven personalisation and contactless services to enhance your journey, streamlining research and providing tailored booking options. Some innovative companies will even introduce VR experiences, allowing you to explore destinations before making a commitment.”

“American Airlines, Delta Air Lines, Disney and Trivago have all partnered with companies that produce templated AI-generated videos at scale and they're seeing the results of that investment,” adds Rachel. “Hotels are also leveraging AI to personalise welcome videos for their guests and offer up recommendations for their stay all based on data. At each stage of the consumer journey, we're seeing brands leverage data analytics and consumer insights to surprise and delight their target audience in ways that speak directly to their mindset and motivations.”

“Tech is a game changer for travel, and it’s only becoming more important,” agrees Dipti Bramhandkar, executive strategy director at Iris, North America. “Take United Airlines – it introduced biometric boarding at major hubs earlier this year, which has cut boarding times by nearly a third. It’s the kind of practical efficiency that travelers really appreciate as they become less forgiving of inconsistent experiences, whether it’s unreliable service or surprise fees from platforms like Airbnb.

“The opportunity here is clear: brands that invest in reliability and personalisation are positioned to win trust and loyalty. We’ve seen Marriott launch ‘Apartments by Marriott Bonvoy’ to compete with Airbnb while Hilton launched an AI-powered app this summer that tailors itineraries with local guides and experiences, making travel planning both personal and seamless.”

On this note, Rachel shares that brands are increasingly partnering with micro-influencers to create seamless, one-click trips. “Expedia is one brand we've seen take advantage of this trend by creating what they call ‘travel shops’. This feature encourages customers to explore trip recommendations and itineraries from their favourite influencers. Each influencer has a link to their shop in the bios of their Instagram and TikTok profiles that direct their followers to their travel shop to start booking. This curated recommendation taps into the ‘personalisation’ piece of the puzzle because consumers are already following these influencers on social media, indicating they likely have an appetite for their curated content and aesthetic, and, by association, their trips. 

“Creating this kind of seamless experience not only cuts down on the arduous planning process but also increases the likelihood of the audience following through and booking a trip. We see an opportunity for more brands to leverage influencers and micro-influencers to turn the wanderlust they stir up into a purchase.”

“What people are looking for,” Dipti sums up, “is curated, one-of-a-kind trips rather than cookie-cutter packages. This is where creativity shines. For example, there’s been a huge interest in ‘set-jetting’, where travelers visit destinations featured in movies and shows. Brands that can tap into pop culture and offer hyper-local, bespoke experiences are going to stand out.”

Trends such as set-jetting are opening up alternative locations which could help counteract over-tourism in some of the world’s most popular destinations – recent satellite data suggests 80% of travelers visit just 10% of the world’s tourist destinations (as reported in The State of Tourism and Hospitality 2024 by McKinsey & Company). According to National Geographic, the first season of The White Lotus, shot at the Four Seasons in Maui, led to a 386% increase in availability checks at the property. The second season drove tourists to Sicily and, sensing an opportunity, the Thai government proceeded to heavily court the show's producers by offering them $4.4 million in tax incentives.

With congestion a huge pain point – which many travelers put down to low-budget airlines and social media luring everyone to the same spots – there is concern over not only frustrating locals and fellow visitors alike, but harm to natural and cultural attractions. 

“Over-tourism and the resulting tension between locals and visitors are challenges which will only increase for destinations in years to come,” says Alex Lemecha-Sim, business director at M&C Saatchi UK. “As global travel continues to grow, many destinations struggle to balance welcoming visitors with preserving the lifestyle and identity of their residents. Over-tourism often leads to overcrowding, rising costs of living, and environmental strain, creating friction that diminishes the sense of authenticity and warmth that make destinations appealing. When residents feel displaced or disconnected, the overall tourist experience suffers. 

“Destination brands can address these challenges by redefining their purpose as homes first and tourist attractions second. This approach involves fostering a sense of connection between locals and tourists, creating purposeful tourism that enhances local culture and protects the environment rather than demanding compromise. By involving locals early and genuinely in tourism strategies, destinations can ensure residents feel connected with and proud of their home’s identity. Successful examples, such as the Faroe Islands, show how integrating local voices builds community pride, strengthens engagement and enriches visitor experiences through meaningful connections to the destination. By prioritising cultural respect and shared values, destinations can build lasting bonds between tourists and locals, creating experiences that are impactful, sustainable, and mutually enriching.”

“Brands embracing experiences that honour the culture where they show up will do well,” agrees Nicole Ellingson, vice president and group creative director at Quigley-Simpson. “Brands need to do more than talk about culture; they need to be transparent about what they're doing to stimulate local economies, how they’re addressing sustainability, and how they are respecting local communities. As people seek activities off the beaten path, brands should be prepared with unique and immersive moments that speak to different types of travelers and help them feel more connected to a place and other people.”

“Collaborations with local creators or cultural ambassadors can elevate a stay beyond the ordinary,” adds Guy Howland, executive creative director at Dentsu Creative. “These moments are what people remember – and share – long after they’ve gone home.” In fact, a BETC survey shared by deputy managing director and head of strategy (Paris), Adrien Fortabat, which delves into the opinions of prosumers (leading market drivers that influence the consumption of mainstream consumers) found that 83% think tourism brands “should support and empower local communities”.

“Booking.com also highlighted that over 70% of travelers now prioritise sustainability and local engagement over traditional sightseeing,” says Dipti. “This trend has pushed cities like Kyoto to limit visitor access in certain areas, aiming to preserve its cultural heritage while still meeting demand.”

As outlined in McKinsey’s report, concerns over congestion and sustainability have led travelers to start looking for alternatives: “For instance, Laos and Malaysia, which both border Thailand – an established destination that is home to Bangkok, the world’s most visited city – are up 20% and 17%, respectively, in year-over-year international travel spending.”

Dave Jones, head of strategy at True Digital says, “A niche but emerging trend worth keeping an eye on is wilderness adventure travel. We expect to see growth among wealthy tourists looking to disconnect completely from the stress of day-to-day life with bucket-list holidays to some of the world’s most remote locations. Search demand for trips to places like Patagonia and Antarctica have been growing for several years now, and the increasingly chaotic global news agenda is only likely to accelerate our desire to escape from it all.”

“And if the travel frenzy driven by 2024’s solar eclipse was any indication,” adds Rachel, “natural phenomenon-seekers are eager to visit breathtaking sights like the Northern Lights, geysers and hot springs. We’ve been tracking Vrbo's Phenomena-List and were thrilled to see that Wilmington and Island Beaches (one of our clients), made the list as one of the top attractions for 2025 for its Venus flytraps. Other notable US attractions included Utah’s International Dark Sky Park and Tennessee's synchronous firefly season.

“There’s also the ‘destination dupes’ trend. Brands like Booking.com and Expedia have embraced this by producing hype videos for lesser-known, less-frequented destinations. This is particularly popular among budget-conscious travelers.”

But alternative destinations alone cannot counteract the bigger issues around sustainability. So what else can be done?

“Digital and smart tourism can play a crucial role in making travel experiences more sustainable,” Rachel explains. “For example, our research partner, Mintel, recently published a report highlighting how Vietnam's tourism industry is developing digital platforms for cultural heritage sites to minimise the environmental impact of visitors.”

David states that “more than three in five Americans say they’re concerned with climate change, according to an article published by Morning Consult. However, very few travelers are taking significant steps to make their travel choices less impactful or to offset their travel behaviours in some way. Here’s an interesting nugget though: for those travelers who do want to reduce their impacts, opinions differ on how best to do so by generational cohort. 

“All travelers agree on minimising single-use items as a natural first step. Beyond that, boomers and gen x say they’re more likely to reduce a level of service that might affect their own comfort – like reusing linens during a hotel stay. Whereas gen z and millennials would rather pay more to reduce impact – by selecting a carbon offset on an airline, choosing a more expensive brand that prioritises sustainability efforts, or upgrading to an EV car rental. Travel brands that may be targeting a particular generational cohort should take steps to ensure that the initiatives they communicate align appropriately.”

“Research shows that millennials and gen z fly more frequently throughout the year and expect airlines to adopt sustainable practices,” says Rachel. “Because of this, airlines need to adjust their marketing strategies to highlight their sustainability initiatives. Transparent communication and education about these efforts, including their limitations, can empower consumers to make informed decisions. For example, Alaska Airlines is making progress by allowing customers to purchase sustainable aviation fuel credits to offset 5%, 10% or 20% of their emissions when booking a flight.”

Meanwhile, Delta recently introduced the option for travelers to buy Sustainable Aviation Fuel (SAF) credits when booking flights, as Dipti shares: “It’s a simple but powerful step that lets customers feel like they’re contributing to a solution. It’s also a smart way for brands to show they’re taking action on environmental issues, which builds trust and encourages responsible travel.”

Guy notes that “it’s about more than just marketing – it’s about showing tangible actions. Align with initiatives like sustainability and community impact in a way customers can truly experience. Brands need to live their values, not just talk about them.”

With the appetite for travel healthy and strong, competition is fierce. “It has become a race to see which travel brands can meet high consumer expectations,” Rachel states. “Brands face the challenge of differentiating themselves among numerous competitors all vying for the attention of their target audience.”

Alex adds: “Collaboration between destinations can be a game-changer. Joint campaigns not only unlock creative possibilities that solo efforts can’t achieve but are also resource-efficient, allowing brands to pool together, expand reach and promote complementary or multi-destination experiences. The result is compelling narratives that captivate attention and leave lasting, distinctive impressions.”

“Brands have to get creative,” Dipti stresses. “Competition is driving innovation and raising the bar across the industry. Accor Hotels recently launched ‘Heartist Stays’, which focuses on art-themed accommodations in Paris. It’s a smart move because it appeals to a specific type of traveler looking for a culturally immersive experience. But what’s most exciting to me is how travel is evolving to be more thoughtful and impactful. Lonely Planet’s partnerships with indigenous communities to create immersive cultural tours is a perfect example. It’s not just about seeing the world anymore – it’s about connecting with it in meaningful ways. This shift toward responsible and authentic travel is a huge step forward, and it’s something to be really optimistic about!”

“The concept of ‘soft travel’ will also gain momentum in 2025,” adds Blake. “Travelers are increasingly looking for experiences that allow them to unwind and rejuvenate, opting for trips that soothe the nervous system without the stress of a packed itinerary. Relaxation and exploration at one's own pace will be the new mantra. In the luxury market, consumers are seeking nature-focused experiences, detox retreats, self-discovery journeys and holistic health programs – proving that in today’s world, health is indeed the new wealth.”

Dipti agrees: “The next few years are going to be all about wellness tourism, regenerative travel, and ‘workcations’. Aman Resorts is leading the way with its Life-Reset Wellness Immersion program, which combines luxury stays with tailored wellness plans. These types of experiences blur the line between leisure and personal development, which is exactly what many travelers are looking for right now.”

“What’s clear,” Blake says, “is that proactive adaptation and innovation will fuel growth as the travel sector navigates the challenges and opportunities of 2025. The journey ahead promises excitement and discovery – so pack your bags and get ready for the adventure. All aboard!”