Travel enthusiasm hits new heights, but
overtourism, climate change, loyalty program challenges and
government regulations are changing the way we explore the
globe
NEW
YORK, Dec. 4, 2024 /PRNewswire/ -- Today, The
Points Guy (TPG), the media platform focused on maximizing
travel experiences while minimizing spending, released its 2025
Travel Trends Report, highlighting the global conditions that
will shape why and where Americans will travel next year.
The report found that while expected travel spending has
increased in most cases, the desire to travel has not waned heading
into 2025. In fact, people are willing to spend even more money on
meaningful trips where they can connect with others through
cultural moments and shared interests. That said, travelers have a
renewed focus on getting the most value for their money (and
miles).
"It's clear that travel isn't slowing down anytime soon and will
only keep increasing steadily as we head into 2025. Americans are
more excited than ever to explore the globe despite rising costs
and climates, making it crucial to plan ahead, do your research and
take full advantage of points and loyalty programs to score the
best deals," says Brian Kelly,
founder of The Points Guy.
Expect to Spend More
It's no secret that expenses are increasing across the board,
and travel is no exception. While airfare and lodging costs are
actually down compared to 2023, consumers are choosing to spend
more on experiences and nightlife, as well as taking longer trips
to enjoy their destinations. For example:
- Recreation and food and beverage spending saw a 4% increase
from 2023 to 2024, fueled by increased desire for authentic and
novel travel experiences
- Specifically, Mastercard found that 12% of all
tourism sales are now allocated towards experiences and nightlife,
and more than half of Gen Z respondents and 47% of Millennials
would prefer to save money on flights instead of sacrificing the
experiential aspects of their trips, according to McKinsey
data
- The average trip in 2024 was 5.5 days, up from 4.5 days in
2020, and Gen Z is also spending more money to travel further from
home, booking international trips just as often as domestic
flights
Travelers Are Craving Shared Experiences
Supercharged by Taylor Swift's
"Eras Tour," the era of event travel is here to stay. From
international concerts to music festivals and even historic events
(like the 2024 solar eclipse), travelers are planning both short
trips and full vacations around shared experiences. Data from
Vacasa found that 47% of travel is now planned around a
central event, making it more important than ever for people to
book early to avoid sold-out scenarios and exorbitant prices.
New Points and Miles Challenges
While travel enthusiasm is at an all-time high, points and miles
are getting more complicated to obtain and leverage. Credit card
annual fees have increased by $100
for some of the most sought-after travel cards, and redemption
rates are also on the rise. Even typically affordable partner
programs saw unexpected price increases in 2024 – for example,
British Airways' domestic Avios redemptions flying American
Airlines and Alaska Airlines increased on average by 35% in Main
Cabin economy and 39% in first class.
All these changes might seem overwhelming, but points and miles
still hold immense value when used correctly. Heading into 2025
with a clear points and miles strategy will ensure travelers
continue to get the best value for their money.
The Impact of Overtourism
The post-lockdown travel surge has also brought renewed
attention to overtourism, with local governments stepping in to
protect their communities. In 2025, popular vacation spots will
seek a better balance between the economic benefits and negative
community impact, which could mean higher prices and limited
availability. For example, Amsterdam, Barcelona, Venice and Bali all added or increased taxes/entry fees
in 2024.
Travelers themselves are also unhappy with overcrowded cities
and attractions, now looking to travel in the off-season or visit
under-the-radar alternatives – known as "destination dupes" – for a
better vacation experience:
- 76% of travelers are choosing offseason travel to avoid
crowds, according to Virtuoso
- 31% are considering less-touristed destinations for their
next vacation
Climate Change is Affecting Travel
In addition to avoiding overcrowded destinations, travelers are
also factoring climate change into their plans, whether they know
it or not. "Coolcations" are becoming more common during the
traditional summer months, especially since the European Union's
climate change monitoring service marked 2024 as the warmest
Northern Hemisphere summer since records began:
- Travel to Iceland and
Finland increased 62% and 150%,
respectively, while travel to Greece decreased 17% during peak summer
months
- Sweden, Canada, The
Netherlands, Denmark and
Norway also saw a surge in
year-over-year summer demand, according to Virtuoso
However, extended shoulder seasons are still making it possible
to comfortably visit dream destinations. Warmer springs and falls
are creating longer travel seasons, and the travel industry is
responding with additional availability for flights, cruises and
hotels – for example, in September and October 2024, Delta Air Lines, United Airlines
and American Airlines flew over 50% more seats to Italy than they did during those same months
in 2019.
New Government Regulations
While the federal government made some progress in protecting
travelers in 2024 – including rolling out stricter refund rules for
airlines and introducing the Junk Fee Prevention Act – not all
proposed legislation is a win for U.S. travelers.
For instance, the Credit Card Competition Act, which TPG stands
firmly against, aims to lower the "swipe fees" merchants pay when
customers use a credit card. For context, a portion of these credit
card transaction fees goes toward funding reward programs and card
perks. If this legislation passes, credit card issuers would likely
cut back on benefits they offer to cardholders, from rewards to
points programs. This legislation not only has the potential to
impact consumers' perks, but it could impact their security and
fraud protections. Existing payment networks invest
millions of dollars in customer security, so allowing retailers to
select newer, cheaper and unproven providers could put their
personal information at risk.
Travel Enthusiasm Soars
The industry is no doubt evolving rapidly, but even with so many
changes, travelers are as enthusiastic as ever to discover new
corners of the globe and get the most value for their money. In
2025, a renewed focus on points, miles and loyalty programs will
help consumers experience new destinations, explore their interests
and unlock new passions around the world.
To review the full 2025 Travel Trends Report, please visit
thepointsguy.com/traveltrends.
About The Points Guy
The Points Guy (TPG) is a
trusted travel media platform that focuses on maximizing travel
experiences while minimizing spending. Through an informative,
clever point of view, TPG has become the leading online site for
all things points, miles and resourceful travel experiences. The
site's editorial content, newsletter and app consists of
firsthand flight, hotel and airplane reviews, curated travel guides
and immersive video components, as well as global event
activations. Since its launch in 2010, founder Brian Kelly has expanded the team to include a
distinguished editorial staff and extensive network of freelancers
around the globe. Today, TPG reaches 11 million unique monthly
visitors and more than 5 million followers across social media
platforms (Instagram, Facebook, X and TikTok).
Media Contact
press@thepointsguy.com
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SOURCE The Points Guy