Proliferation of A.I., Importance of Luxury, & Influx of Younger Travelers Top 2025 Predictions

Travel industry insiders used to have a clear crystal ball when it came to making predictions about the future. The COVID-19 pandemic upended that and the past three years have brought a number of surprises, leaving many executives throughout the travel industry without a clear picture of what’s next. This year, however, has seen several aspects of the industry settle down and some semblance of “normal” start to emerge.

In general, the industry is bullish on what comes next.

“2025 is sure to be an outstanding year for travel,” said Vicki Freed, senior vice president, sales and trade support & service at Royal Caribbean International.

“Travel growth in 2025 will be marked by steady demand, with consumers balancing their financial priorities while still seeking enriching experiences,” Jane Clementino, senior vice president and general manager of TRAVELSAVERS Canada, told TMR.

In fact, according to a TRAVELSAVERS Canada survey, 81% of agencies predict revenue growth, with top trends like all-inclusive, family, and adventure travel taking center stage.

With that optimism in mind, TMR reached out to executives across the travel industry’s verticals – as well as our own editorial team – to find out what’s on the horizon.

From the increasing importance of the luxury traveler, to the pressing need for advisors to incorporate A.I. and other high-level technologies into their business practices, to the expected influx and influence of younger travelers – and younger families – and beyond, here are next year’s predictions.

Agencies That Embrace Luxury Will Win in 2025

Daniel McCarthy, vice president & editor-in-chief, TMR

Between 2011 and 2014, Delta Air Line’s premium seating accounted for just 20% of the airline’s offerings. From 2015 to 2019, that figure rose to 25%. By 2022, premium products represented 30% of Delta’s offerings and have since become the airline’s highest-margin segment. This should serve as a wake-up call for advisors who have yet to embrace luxury products. Whether it’s your existing clients moving up the buying scale to premium, upper-premium, and luxury classes, or new clients seeking premium experiences, building your future business around higher-end products will be essential. That’s where customers are now – and where those who aren’t there yet want to be. With travel spending remaining strong and consumers prioritizing experiences over goods, the aspirational has become the reality. That’s where your business needs to be.

Jody Mattice, director, global travel partnerships and communications, Hilton

“As we look ahead to 2025, the luxury market’s rapid growth is showing no signs of slowing down. Travelers are increasingly drawn to extraordinary, high-impact stay experiences in remarkable destinations around the world as they seek to make the most out of their time and financial investment. Hilton’s 2025 Trends Report [also] reveals luxury travelers’ desire to meet new people and disconnect from digital devices during their travels.”

Technology Will Drive Big Changes

Dori Saltzman, senior editor, TMR

The travel industry will start to see more of a division between non-affluent travelers and affluent travelers in how they choose to book travel. As AI-driven travel planning continues to grow, lower-paying and budget-oriented travelers will begin to look more and more at DIY-ing their travel planning using the growing number of AI-assisted tools. Affluent travelers will continue to value the role that travel advisors have to play in vacation planning and will be willing to pay a premium to work with a “real” person and get personalized service.

Michelle Fee, founder & CEO, Cruise Planners

“AI-driven chatbots will handle a large volume of routine client inquiries, such as providing travel details, suggesting activities, or addressing concerns about itineraries. These chatbots will be capable of answering complex questions with accuracy and in real time. This allows travel advisors to focus on higher-value tasks like client relationship building and problem-solving.”

Christina Pedroni, executive vice president & general manager, Envoyage

“AI will impact the FIT segment.  One trend Envoyage is monitoring closely is the increasing use of AI by travel advisors to generate travel itineraries and its potential impact on bookings traditionally supported by guided tour operators or specialist DMCs. The FIT (fully independent travel) segment has already experienced significant growth due to shifting customer preferences post-pandemic.  I anticipate this trend will accelerate in 2025 as AI makes it easier than ever for advisors to craft detailed itineraries and seamlessly integrate hotel, activity, and travel arrangements.”

Wayne Spector, senior vice president, NEST

“We’ll see a significant shift in how travel advisors use technology to enhance personalized service and create stronger relationships with clients. Artificial intelligence will play a central role, enabling advisors to streamline their planning processes. They’ll be able to offer curated experiences at an unprecedented scale now. I strongly believe that the advisor community will continue to grow and thrive. The travel landscape is becoming increasingly complex. With all the new cruise ships, theme parks, hotels and other offerings, there’s a rising demand for expert guidance, which will result in a surge in advisor sales.”

Phil Cappelli, chief sales officer, Avoya Travel

Now that the election is over, we can expect greater economic clarity, which will likely fuel consumer confidence and drive a renewed enthusiasm for travel in 2025. In the cruise sector specifically, continued innovation in onboard experiences, coupled with strategic investments by suppliers, will lead to increased demand and growth. Dynamic pricing, powered by AI, will become even more integral, as suppliers optimize rates in real time based on evolving booking patterns. Advisors will also benefit from enhanced AI tools, allowing them to offer hyper-personalized services, strengthen client relationships, and achieve record-breaking sales volumes in what promises to be a banner year for the industry.

Younger Travelers Will Account for Larger Share of Advisor Business

Jacki Marks, global head of trade brands, ALG Vacations

In 2025, we expect Gen Z and Millennial travelers to continue seeking guidance from travel advisors at an increased rate. With their desire for immersive experiences and thoughtful approach to planning, younger travelers want to maximize both their time and their budget, recognizing the added value of working with an expert. This shift is partially being driven by a new generation of advisors who have a deep understanding of their peers’ preferences.

Erika Sordo, director of marketing & public relations, Viva Resorts by Wyndham

In 2025, we anticipate significant growth in the all-inclusive travel market, driven by evolving traveler demographics and emerging trends. Families will continue to be a core demographic, with a noticeable increase in demand for multigenerational travel experiences. Younger travelers, particularly Millennials and Gen Z, also show heightened interest in all-inclusive options, valuing affordability, cultural immersion, and eco-friendly practices. These shifts underscore the importance of diversifying offerings to cater to a broad range of preferences. Experiences and sustainability will play pivotal roles in shaping industry growth.

Ron Gulaskey, vice president of US sales & strategy, Club Med

In 2025, we expect a growing trend in family travel as parents seek destinations that truly cater to their youngest travelers. Families are looking for seamless vacation experiences that include thoughtful amenities and customized services for babies and toddlers, allowing parents to relax while their little ones are cared for.

Karelle Lamouche, global CCO and spokesperson, Accor (Premium, Midscale & Economy division)

Travel is here to stay and here to grow, and that growth is coming from the east and the youth. Travel in emerging markets has been growing rapidly and represents a significant economic and social force. Over the course of this decade, the travel landscape is [also] being reshaped by the preferences of a new generation of travellers. Gen Z and Gen Y (aka Millennials) are emerging as the most influential travelers in the world today. The experience seeking generation,their travel habits reflect deeper desires for self-discovery, connection, and social responsibility. Gen Z are the digitally native and socially conscious travelers. Their influence on markets includes their demand for experiences, sustainability, inclusivity, and digital-first experiences.​”

Canada’s Agency Workforce Will Become More “Independent”

Wendy Paradis, president, ACTA

“A significant shift is reshaping Canada’s retail travel industry landscape including continuous technology enhancements and growth in independent travel advisors. As we peer into 2025, this evolution presents both extraordinary opportunities and strategic challenges for industry stakeholders.

One of the most striking trends is the restructuring of our travel advisor workforce. The traditional in office work model continues to evolve to more flexible work environments, including more independent travel advisors and part time workers. (However, it is important to note that the vast amount of travel agency employees, close to 80%, are full time travel advisors.)”

Off-Peak, Dupe Destination & Intentional Travel Demand Will Grow

Rudi Schreiner, president, AmaWaterways

“What really stands out to me is how river cruising is increasingly appealing to a wider audience, from younger travelers seeking more intimate experiences to multi-generational families. The increasing demand for European travel during off-peak seasons is making the idea of year-round river cruising more viable than ever. These developments are part of a broader commitment to innovation in the cruising industry. It’s not just about growing fleets; it’s about expanding the very concept of what a river cruise can be.”

Nicole Mazza, chief marketing officer, TRAVELSAVERS

“In 2025, travelers will choose their journeys very deliberately. Travel will reflect their unique goals and dreams, whether it’s challenging themselves physically, deepening cultural understanding, or simply recharging.”

Ignacio Maza, senior advisor, Signature Travel

“In 2025, travelers will increasingly seek out alternative destinations that offer similar experiences to popular hotspots but with fewer crowds and better value. Instead of Lake Como, consider Lake Maggiore or Lake Garda. Puglia is a great alternative to Tuscany. These shifts will allow travelers to experience the essence of beloved destinations without the crowds and higher prices, leading to more authentic and enjoyable trips.

Travel advisors will play a pivotal role in this trend, becoming indispensable guides to these lesser-known gems. Their expertise will be crucial in expanding travelers’ horizons, introducing them to destinations they might never have considered. Advisors will leverage their insider knowledge to match clients with alternative locations that align with their interests and expectations, ensuring experiences that rival or surpass those of more famous counterparts. They’ll provide invaluable insights on navigating these emerging destinations, from recommending the best times to visit to arranging unique experiences, privileged access, and added value that aren’t readily available to the average traveler.”

Jeff Element, COO, The Travel Agent Next Door

“Soft travel will become an even bigger part of the travel lexicon in 2025. Not to be confused with slow travel. Soft travel has more of an individualized, inward-looking focus. More thoughtful low-key experiences. Less big city bright lights and more small communities and local connections.

Soft travel also ties to the second trend we see happening– and that is Destination Dupes. Where you plan to skip mainstream vacation hubs and opt for destination duplicates. Think of bypassing Santorini and spending a few extra days in Milos. Skip Thailand and spend all your time in Cambodia. Less crowded, less expensive.”

David Kolner, executive vice president, Virtuoso

“Continued normalization of slower-season travel to top destinations. We already have seen a new interest in European Capitals during the offseason, and I expect this to continue as travelers both avoid peak pricing/crowds/sellouts and also just move on to discover more farther flung destinations and experiences – whether that’s coolcations or just off-the-beaten path. I wouldn’t get too excited, though, that peak destinations/dates are going to show any sign of downturn; there’s plenty of other travelers keeping demand steady there too.”

Diversification Will Become Ever More Important

Michael Johnson, president, Ensemble

“The incredible growth in air travel presents a tremendous opportunity for advisors. A recent industry survey shows that air travel across all age groups has surpassed pre-pandemic levels, signaling a strong and sustained demand. If you’re not selling air, you’re leaving money on the table… Air is no longer just a gateway product; it’s a critical revenue stream.

At the same time, it’s equally as essential to diversify your business model to build resilience against external challenges. The best time to pivot is before you have to. That’s why we encourage our advisors to broaden their expertise—whether it’s expanding from cruises to land-based experiences or adding new geographic regions to your portfolio. Diversification not only strengthens your business but also ensures you remain indispensable to your clients.”

Briana Bonfiglio, associate editor, TMR

“In 2025, I predict that more hotels will collaborate with tour operators to provide guests easy access to experiences that connect them to the destination. This is already common at large resorts in the Caribbean and Mexico, such as Sandals and Beaches offering tours by Island Routes. But now, seeing as travelers’ appetites for immersive, experiential travel has risen across the board, I expect that more smaller scale hotels will begin to follow suit – especially with tailored, niche excursions. Recently, Virgin Limited Edition announced a partnership with LeBlanq, a curator of culinary and cycling retreats, to launch a series of the company’s signature Joyride Experiences from their hotels. The first is a planned, three-day journey at Son Bunyola Hotel & Villas in Mallorca, and there will be more to come in 2026. Exclusive, adventurous getaways like this one are becoming more appealing to the luxury traveler, and I predict that more hotels will show interest in these kinds of partnerships.”