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In a world where we are drowning in ‘stuff’ and time is increasingly precious, how we choose to spend our leisure moments has become deeply personal – more about identity, connection, and meaning, than convenience or affordability.
It is one of the few industries where lifestyle, aspiration, culture, and technology collide with such intensity. And because of that, it’s also one of the most exciting (and challenging) sectors to watch!
Beyond the destination: How travel brands compete for the emotional journey in 2025
Today, travel and leisure brands aren’t just competing on things like location or pricing. They’re competing on how well they understand the consumer’s emotional needs. Travellers no longer ask, “Where can I go?” or “what can I do?”, but “What will this experience mean to me?”
To stay relevant, travel and leisure companies must become experts in emotion, culture, and innovation, all while navigating a landscape shaped by seasonality, economic shifts, sustainability demands, and fast-changing consumer expectations.
Navigating the new travel consumer mindset
Modern travellers are seeking more than relaxation – they want connection, alignment, and impact. Here’s how different groups are reshaping demand:
Millennials and Gen Z crave adventure, social media–worthy moments, and digital-first convenience:
- 84% of Millennials and 90% of Gen Z have chosen a travel destination based on how it looks in online photos or videos (Expedia 2023)
- 58% of Millennials and 71% of Gen Z actively search Instagram, TikTok, and YouTube when planning trips (YouGov, Global Travel Report 2023)
Boomers and seniors are traveling more and prioritising comfort, access, and enrichment:
- Averaging 4.3 trips per person in 2024, up from 3.8 in 2023 (AARP Travel Trends 2024)
Wellness tourism is booming, with demand for healing retreats, mindfulness journeys, and nature-immersed escapes
- Wellness travel accounts for 7.8% of all global tourism trips but makes up a much larger 18.7% of total tourism spending (Global Wellness Institute 2024)
Emerging markets in Asia, Latin America, and Africa are fuelling a surge in outbound tourism
- UK tour operator Tui reports surging demand for destinations in Africa, Latin America, and Asia, citing strong bookings and willingness to spend on “bucket-list” experiences
Digital nomads are redefining “work-life balance” with a hybrid lifestyle that fuses productivity with exploration, driven by factors like post-Brexit mobility and lifestyle changes.
- UK nationals represent around 7% of the global digital nomad population, estimated at 7.46 million people globally (MBO Partners)
Challenges and headwinds facing the travel industry
Despite its vibrancy, the travel sector remains fragile. Demand is easily swayed by geopolitical events, currency fluctuations, economic downturns – all of which can affect traveller confidence and affordability. And with labour shortages and cost inflation constantly squeezing margins this is not an industry for the faint hearted.
Meanwhile, disruptors like Airbnb and Uber continue to shift consumer expectations, putting pressure on traditional business models. Rising airfares, growing environmental consciousness, and the increased popularity of staycations are pushing travel brands to rethink everything, from pricing to positioning.
Five trends defining the industry's evolution
1. Experience is the new luxury
Travellers are shifting from material goods to meaningful stories. Local, personalised, and immersive moments are the new status symbols.
2. Reinvention is constant
The rise of slow travel, eco-retreats, and remote work experiences reflects ever-shifting values around time, health, and sustainability.
3. Sustainability takes centre stage
From carbon offset programs to community-led initiatives, travellers want their trips to leave a positive footprint.
4. Blending work and leisure
The lines between business and pleasure have blurred. Today’s travellers want coworking spaces as much as they want a beachfront hammock.
5. Social media–driven discovery
TikTok, Instagram, and YouTube now drive destination decisions. Viral moments often outpace traditional marketing.
Travel brand strategy: How to succeed now, next, and beyond
To thrive in this emotionally charged, tech-driven, and dynamic space, travel brands must align their strategy across three horizons:
Now (2024–2025): Optimise for personal, seamless, and responsible travel
- Digitise the journey: Contactless check-ins, mobile concierge apps, and AI-powered support.
- Prioritise sustainability: Transparent carbon policies, ethical sourcing, and local partnerships.
- Offer flexibility: Modular booking options and last-minute change policies.
- Elevate personalisation: Smart loyalty programs, dynamic itineraries – personalisation is king.
Next (2025–2027): Design for transformation and cultural alignment
- Curate life-changing moments: Healing getaways, solo discovery trips, and multigenerational bonding experiences.
- Support blended lives: “Bleisure” stays, cowork-friendly design, and incentives for extended travel.
- Reflect diversity: Inclusive hospitality, diverse cuisine, and culturally rich programmes.
- Adopt anticipatory tech: Predictive personalisation, biometric verification, and augmented reality tools.
Beyond (2028+): Become a partner / platform to find fulfilling, meaningful experiences
- Lead with purpose: Move beyond “what we offer” to “what we stand for.”
- Travel as life support: Facilitate sabbaticals, spiritual resets, and reinvention.
- Regenerate, don’t just sustain: Actively enhance local ecosystems and communities, regenerative tourism with a net positive impact.
- Design intelligently: Use AI for real-time optimization of energy, crowd flow, and pricing.
Which travel & leisure brands are leading the way?
Several successful players embody this forward-thinking mindset:
- Airbnb: Championing local, authentic, and digital-first travel.
- Selina: Building hybrid spaces for work, play, and community.
- Intrepid Travel: Setting the gold standard for sustainability and cultural immersion.
- Expedia & Booking.com: Delivering seamless, tech-driven planning experiences.
- Virtuoso: Elevating transformational travel through luxury and purpose.
Conclusion: Travel isn’t just movement, it’s meaning
In today’s world, travel isn’t just about getting from A to B. It’s about who you become along the way. The travel brands that will thrive are those that embrace emotion, respond to cultural shifts, and prioritise purpose.
The path forward?
Be personal. Be purposeful. Be prepared. And, above all, be human.
Travellers expect personalization, flexibility, authenticity, tech-enabled ease and alignment with their values.
- Get Personal: Data-driven, tailored offers
- Move Fast: Mobile-first, frictionless UX
- Have a Purpose: Stand for something real
- Offer Flexibility: Modular, cancel-friendly
- Own the Journey: Pre-trip to post-trip
- Track Culture: React to shifts quickly
Want to chat more on how to future-proof your travel brand? Drop us a message or get in touch with us at inquiry@strat7.com.