Travel Trends Shift: Cooling Demand, Budget Adjustments, and Sustainability Take Center Stage
From smart spending to passion-driven journeys, Simon-Kucher reveals the trends shaping travel this season
[London, 12 December 2024] – Global tourism is adapting to new realities as Simon-Kucher, the leading growth consultancy, unveils its fall/winter Travel Trends Study. Drawing insights from over 7,200 respondents across eight key markets, including the UK, US, UAE, and major European countries, the study explores evolving consumer behaviors in leisure and corporate travel. Economic challenges and shifting priorities are reshaping global tourism, driving smarter spending and a growing emphasis on sustainability.
“Despite economic headwinds, travel remains a top priority,” said Dimitris Hiotis, Senior Partner and Head of Leisure, Travel & Transportation at Simon-Kucher. “Consumers are adapting their spending habits while focusing on meaningful experiences and sustainability. The industry continues to evolve, presenting opportunities for those ready to innovate.”
Budget and traveler behavior
- Leisure Travel Budgets Slow Down: Global leisure travel budgets are projected to grow by just one percent, reflecting a cooling demand. France and Italy stand out with budget declines of two percent and one percent, respectively, while the UAE, US and Spain show stronger resilience with more than two percent budget growth.
- Cost-Saving Adjustments: Key factors driving budget reductions include opting for budget-friendly accommodations (42 percent), shorter trips (33 percent), and tackling cost of living (31 percent).
- Family Travel Rises: Holiday gatherings are fueling an up to 35 percent increase in family travel, underscoring the renewed importance of togetherness this season.
- Group Travel Momentum: Group travel is recovering steadily, with a four percent increase projected in events. Growth is driven by rising corporate demand and
events, especially in key markets like the UAE and UK.
Emerging travel trends
- Economy Travel as the New Norm: Travelers globally are turning to budget accommodations and affordable transportation. Younger generations are leading this shift, especially in Germany and Spain.
- Passion-Driven Travel: Experiences are driving spending. Music fans are willing to pay 25 percent more on transport to attend live events, while sports fans may pay up to 31 percent extra for accommodations and transport.
- Domestic Escapes Dominate: Over 25 percent of travelers are choosing domestic or nearby destinations for affordability and convenience.
- Overcrowding Awareness: Over 50 percent of travelers are concerned about over-tourism, with 20 percent canceling trips due to overcrowded destinations.
- Luxury Tourism Surges in Specific Markets: High-end travel is flourishing in the UAE, UK, and the US, with travelers seeking premium accommodations and elevated experiences.
- Sustainability Takes Center Stage: Accommodation leads sustainability awareness. Nearly 43 percent of travelers are willing to pay up to 43 percent more for eco-friendly accommodations, while 35 percent are willing to pay up to 27 percent more for sustainable flights. The trend is led by US and the UK, closely followed by Germany.
“This season marks a pivotal turning point for the travel industry,” said Ana Morillo, Senior Director at Simon-Kucher. “Companies that embrace trends like sustainability and personalized experiences will position themselves for long-term growth, even amid slowing demand.”
Complete study findings are available upon request.
*About the Study: The Travel Trendy Study, Fall/Winter 2024 edition was conducted in October 2024 by Simon-Kucher. The study surveyed over 7,200 consumers across eight countries (France, Germany, Italy, Netherlands, Spain, UAE, UK, and US), including representative quotas for age, gender, living area, education level, employment status & income level.
Janine McCormac
Email: Janine.McCormac@simon-kucher.com
About Simon-Kucher
Simon-Kucher is a global consultancy with more than 2,000 employees in 31 countries. Our sole focus is on unlocking better growth that drives measurable revenue and profit for our clients. We achieve this by optimizing every lever of their commercial strategy – product, price, innovation, marketing, and sales – based on deep insights into what customers want and value. With nearly 40 years of experience in monetization topics of all kinds, we are regarded as the world’s leading pricing and growth specialist.