In this post we will share some of the trends that could shape the travel industry in 2025 and beyond.
No matter what happens in the travel industry over the next 12 months, you can depend on us to get you the cover you need, at the best possible price. Find out more about our specialist insurance services for travel agents and tour operators.
How Will Climate Change Impact the Travel Industry?
In recent years some parts of the world have experienced record high temperatures. This made certain destinations too hot for tourists, while making it difficult for some aircrafts to take off. There have also been numerous extreme weather events, which inevitably impacted the travel and tourism industry.
Will 2025 also see soaring temperatures, heavy rains, flooding, and storms? In any case, travel industry leaders are already anticipating how a changing climate could affect the way we travel.
Travellers could face more risks, and disruptions may become more frequent, and more severe. Plus, travellers may choose to avoid formerly popular destinations to avoid the risks of extreme heat and possible flooding, such as certain continental cities and coastal resorts.
Read our full guide to how climate change may affect tourism destinations.
What Do Customers Want From Their Travel Experiences in 2025?
In late 2024, Booking.com surveyed their customers to get an idea of the sort of trips that might prove popular in 2025. Here are their key travel predictions for 2025:
- Travellers are increasingly concerned with sustainability. (link to other Jan blog)
- People are looking for “authentic” experiences. Resorts and package deals may prove less popular than in previous years. Instead, travellers will look for “off-the-beaten-path” experiences, with particular interest in wellness, adventure, nature-based activities, and “nocturism”. That means “nocturnal tourism”, with trips focused on activities that take place at night, such as stargazing.
- As well as catering to solo travellers and couples of all ages, travel and tourism operators should also deliver travel experiences for the whole family.
Predicted Trending Travel Destinations for 2025
Booking.com also predicted a few trending destinations for 2025:
- Sanya, China
- Trieste, Italy
- João Pessoa, Brazil
- Tromsø, Norway
- Willemstad, Curaçao
- Tignes, France
- Villajoyosa, Spain
New Opportunities for the Travel Industry from Technology
Technology is revolutionising the travel and tourism industry. According to research from Mastercard, 56% of travel companies are focusing their strategic planning on rising customer expectations for digital user experiences.
What sort of digital trends will reshape the travel and tourism industry in the coming years? AI will mean that automated systems will increasingly replace human interactions. Airlines may turn to biometrics and facial recognition systems in lieu of boarding passes.
Customers will increasingly expect a totally streamlined and personalised experience, where travel companies recognise and meet their needs in real time, ideally without the customer needing to take any actions themselves.
New Cyber Security Risks for Travel Agents
As ever, along with bringing new opportunities, technology also brings a host of new threats. A growing reliance on interconnected digital systems will put travel companies, and their customers, at increased risk of cybercrime. Plus, agencies have warned that cybercriminals are now using AI tools to automatically target and attack businesses.
If you are a travel agent or tour operator, and you have not yet taken steps to secure your systems, make 2025 the year you start taking cyber security seriously. Read our full guide to cyber security for travel agents and tour operators.
We Can Help You Make The Best of the Opportunities that 2025 Will Bring
At James Hallam, for over 35 years we have provided dedicated insurance services for travel agents and tour operators. Our tailored services can help your business stay resilient and competitive, no matter what challenges and opportunities 2025 might bring.
Find out more about our bespoke insurance services for travel agents and tour operators.