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Travel’s Biggest Megatrends for 2025

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Travel’s Biggest Megatrends for 2025

Good morning from Skift. It’s Wednesday, December 11, 2024. Here’s what you need to know about the business of travel today.

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Episode Notes

Skift’s annual Megatrends are back. From pet companions to psychedelic retreats, travel is rapidly evolving. But let’s review three of the biggest trends as we enter the new year.

First, the rise of “quiet luxury.” As high-end properties test just how much their consumers are willing to spend, travelers are growing tired. Columnist Colin Nagy says affluent young travelers want something different: personal, understated experiences.

Owner-operated hotels fill this niche. “Post-luxury” travelers enjoy a sense of place, and these hotels offer curated — not cookie-cutter — stays.

Quiet luxury is a departure from conspicuous consumption, but these travelers have spending power. Big brands will have to adapt.

Next, hotels are playing catch-up with their online travel agency competitors, reshaping their direct booking experience, Senior Hospitality Editor Sean O’Neill explains.

Hoteliers can seize cloud computing and predictive analytics as they tailor the booking journey. Upsell offers are a key component, with IHG reporting a boost of $20 per night for budget brands as these offers increase.

AI could also step things up. Maps and 3D models could take guests inside the hotel before they even set foot on the property, giving hotels a chance to monetize every nook and cranny by selling specific features previously bundled into room rates.

Finally, cool destinations are in hot demand, Editor-in-Chief Sarah Kopit writes.

Norway and Greenland have garnered more attention on social media, and Arctic Russia, Iceland, and Greenland have witnessed big increases in airline seat capacity since the pandemic. 

As travelers need a break from the heat, these destinations guarantee relief. But these destinations need to be cautious, focusing on infrastructure and environmental preservation.

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