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Top travel and tourism themes 2025: low-cost, premium, online, personalisation

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Top travel and tourism themes 2025: low-cost, premium, online, personalisation

French luxury cruise operator Ponant is leaning into the premiumisation theme by offering small-ship cruises that focus on delivering unique and upscale travel experiences. Credit: Nancy Pauwels/Shutterstock.

Low-cost evolution and premiumisation, online travel and travel apps, and personalisation will be the top industry-specific themes that shape the travel and tourism sector in 2025, according to a new report.

In addition to industry-specific themes, GlobalData’s Key Themes in Travel & Tourism 2025 report examines the key technological, macroeconomic and ESG trends set to shape the travel and tourism sector in 2025. Among them, it identifies artificial intelligence, cybersecurity, connectivity, geopolitics, inflation, regulation and ESG 2.0.

The report notes that the sector is undergoing major changes and that the travel and tourism landscape will be markedly different in 2025 to that of 2019.

It explains: “The Covid-19 pandemic, with its prolonged travel restrictions, led to adjustments in business operations and shifts in traveller preferences. Remote work and virtual meetings became more common, prompting broader use of digital tools by both individuals and businesses. For travel and tourism companies, maintaining a strong digital presence is now essential, supported by advanced apps that streamline various aspects of the travel experience. These apps are increasingly designed to serve as comprehensive platforms for planning and managing trips.

“Additionally, the growing role of online travel marketplaces has allowed companies to better utilise consumer data. This has enabled the development of more tailored services and personalised travel experiences, meeting evolving customer expectations.”

Personalisation

Of personalisation specifically, GlobalData states that travel and tourism companies can no longer survive by simply using mass-marketing techniques as was historically the case. It explains that the rise of online platforms has allowed businesses to collect customer data and tailor offerings based on their preferences. This in turn necessitates that businesses must personalise offerings to remain competitive.

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“Businesses need to be looking at macro- or micro-segmentation to eventually reach one-to-one personalisation through unique and optimised offers based on individual behaviour,” the report says. “A personalised service utilised effectively can help aid competitive advantage, meet a consumer’s needs, retain brand loyalty, increase satisfaction and will likely raise customer retention rates.”

The report adds that the collection of relevant customer data – and therefore the use of digital platforms to facilitate that – is key to understanding customers’ needs and expectations, making faster and more informed decisions and providing customers with the tailored experiences they desire.

Online and travel apps

With that in mind, the value of online travel platforms and travel apps is no longer just in the convenience they offer prospective customers for making bookings but also in the data they can collect for shaping travel offers.

Of the impact they have had, the report explains: “The evolution of online travel and travel apps has significantly reshaped the travel and tourism industry, driving profound changes in consumer behaviour, operational efficiency and market dynamics. While online travel platforms and travel apps are closely interlinked, they serve distinct yet overlapping roles. Their interplay exemplifies how technological advancements and user-centric design converge to redefine the travel experience.”

The report adds that the appeal of online travel beyond its convenience lies in the comprehensive offerings and the ability to compare options across price, location and amenities.

“The use of sophisticated algorithms and artificial intelligence further enhances the user experience by providing personalised recommendations and dynamic pricing models,” it says. “These features cater to diverse customer segments, ranging from budget travellers to luxury seekers. However, the success of online travel platforms has also introduced challenges, such as intense competition, pricing transparency and the growing demand for real-time updates and flexibility. As a result, these platforms increasingly rely on mobile technology to meet consumer expectations.”

Low-cost evolution and premiumisation

Two areas of the travel and tourism sector that are seeing growth as a result of affording customers more choice are low-cost and premium offerings.

“These two trends, while seemingly contradictory, coexist as businesses seek to cater to distinct consumer segments, maximise revenue potential and adapt to changing market demands,” the report says. “Analysing their interplay reveals the complexities of balancing cost-efficiency with value creation while addressing diverse traveller needs and preferences.”

The report also notes that while the low-cost and premium ends of the market target different customers, they share a symbiotic relationship.

 “Budget operators expand the overall market by making travel accessible to first-time or infrequent travellers, some of whom may later transition to premium offerings as their financial circumstances or preferences evolve,” it explains. “Conversely, premium brands often influence industry standards, prompting mid-range and budget providers to adopt elements of luxury, such as improved customer service or upgraded amenities, to remain competitive.”

The two trends also allow businesses to diversify revenue streams.


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