Andy Headington, chief executive of specialist travel marketing agency Adido, highlights the key trends that travel operators and agents should focus on this year
Despite talk of the peaks booking period fading, early bookings remain strong, particularly among cost-conscious travellers who are seeking competitive offers.
However, a dip is expected in shoulder months such as March and April, as many travellers either book early or wait until late summer for deals. This polarised behaviour suggests businesses should focus their efforts on peak periods and late-season campaigns, as these are likely to yield the best results.
Overtourism
In recent times, we’ve seen overtourism make headlines. Issues in places such as Barcelona and Mallorca have prompted travellers to explore lesser-known destinations. While Spain remains top of the holiday popularity contest (and that’s not likely to change any time soon), there are signs people are seeking out other destinations.
The standout example here is Albania, which has seen staggering growth of 80% this year in search volume, alongside places such as Montenegro and Sri Lanka.
Value for money
When looking at travellers’ priorities in 2025, the indications are that value will continue to be a key consideration. All-inclusive holidays, with their transparent pricing, continue to grow in popularity.
Rising costs, including increased mortgage payments for many households, are putting pressure on budgets, prompting people to adjust their travel plans. Research from Knight Frank suggests that by the end of 2025, a third of all mortgage deals will be on rates of 4% and over, compared to only one in 20 at the end of this year. While a 2% to 4% increase might not sound much, in reality, this could result in many more hundreds a month being spent.
Shorter trips, lower-star accommodations and lesser-known destinations are becoming the norm for more people. Travel brands should focus on clearly demonstrating their value while addressing any concerns potential travellers have about unfamiliar places – think more content, with a purpose, better imagery and engaging videos.
Tailor the messages
Generational differences in how travellers research and book holidays are more pronounced than ever. Older audiences (65+) favour traditional methods such as brochures and speaking directly to a travel agent. Meanwhile, younger generations – Millennials, Gen Z and Gen Alpha – tend to be more comfortable with digital platforms, social media and recommendations from peers. Research from Abta shows that social media sites inspire nearly half of those under 35, while this is only 3% for over 65s.
For younger travellers, brands should explore newer channels, whether it be podcasts and AI-driven tools, to capture attention. For older audiences, maintaining traditional approaches alongside digital options is important.
In our view, financial pressures will continue to shape traveller behaviour in 2025, with many households rethinking their spending. Older audiences, perhaps less impacted by rising costs, will respond well to inspiring content and aspirational marketing. Families and middle-aged travellers, meanwhile, are likely to prioritise value, seeking holidays that offer maximum enjoyment without overextending their budgets.
To grab the attention of travellers, content needs to be tailored to fit the intended audience, on the most appropriate platform. 2025 might also be the perfect time to take the plunge and invest the time and resources on different channels such as podcasts and the various AI tools available.
So, as a new year approaches, the appetite for travel appears to be as strong as ever. Search volume from our dataset indicates an expected increase overall of 14% for 2024, which is a significant rise after several other years of double digit growth post covid. The industry must adapt to shifting consumer behaviours and financial pressures. From the rise of lesser-known destinations to the continued demand for all-inclusive holidays, value and quality remain top priorities for travellers.
Operators should be ready to address polarised booking behaviours, while tailoring marketing strategies to generational preferences.
By demonstrating value, inspiring confidence and embracing these trends, travel businesses can stay competitive and relevant in the year ahead.