I recently attended a Skift event in London, focused on the latest trends set to shake up the travel industry this year, keen to see if there was any synergy with the findings of our 2025 hospitality trends report. And there certainly was!
Volatility and generational shifts came up time and time again, mirroring the 30.6% of our survey respondents who identified changing guest needs as a top challenge.
Let’s take a deeper dive into the trends affecting the travel industry this year and how your hotel or resort can benefit from them.
Blink and you’ll miss it: live tourism is on the up
People are travelling more and more for specific events — like the Eras Tour, the World Cup, or the northern lights — and plan their entire trip around this. They don’t want to miss out, so they spend thousands of dollars to go all over the world to countries they may never have planned to visit. And with increased travel comes a greater need for hotels and an opportunity to dynamically optimize room rates to match this demand.
These travellers are living in the moment and that’s definitely a trend I can get behind!
It’s raining cats and dogs
According to a recent study by Mars Petcare, there are approximately 1 billion domestic animals across the globe, with the US and China leading the pack. With pet ownership at an all-time high, more travellers are opting to bring their companions on their vacations.
The result? Pet-friendly hotels are in high demand, meaning you’ll need to adapt your existing offering to be more inclusive for furry friends if you want to take advantage of this unique segment.
One hotel that’s doing this effectively is the Busan Signiel from Lotte Hotels & Resorts. They’ve crafted a package called “Me and my pet”, which includes exclusive welcome treats, special gifts, and even pet rental services. A super clever way to capture pet owners eager to travel with their four-legged friends!
Big Brother is watching
Governments are cracking down on short-term rentals as local residents push back against rising rental costs and overtourism.
Communities are growing more vocal about tourism impacting their quality of life, with Barcelonians taking to the streets last July in protest, squirting visitors with water pistols and telling them to go home. One outcome of this could be a government ban on private residences from being used for tourists, handing business back to hotels and resorts on a silver platter. But, will the inevitable room rate price wars send visitors packing to cheaper destinations?
To control overtourism, several governments are also introducing mandated visitor taxes, with destinations like the UK now requiring travellers from outside Europe to obtain an electronic travel authorisation (ETA) before they can enter the country. As an additional cost for travelers, some will be deterred from visiting, leading to shifts in tourist flows and a decline in hotel demand, but how significant an impact this will have, is still unknown.
Opulence is overrated
Gone are the days of ornate, bejewelled chandeliers and gold taps — younger generations are looking for something different. They want authentic, meaningful experiences that are immersive and personalized to them.
Many years ago, I attended a gin-making class while I was on a staycation. It was incredibly intimate, with only four people in the session, and highly interactive. I got to choose my ingredients, sample different flavours, and create my own beverage. I left with my own bottled vintage and the memory of a great experience that I’ve recommended over and over to friends and family.
As a hotelier, the question to consider is, “What can you offer guests that’s unique, that they’re willing to pay a premium for?”
2025 is a year for change
With geopolitical instability and shifting customer expectations, this year is going to be a rollercoaster. But what’s the silver lining? There are tons of opportunities for revenue growth as long as you’re willing to embrace change to remain competitive.
