Tourism industry trends for 2025 - AI, sustainability, and emerging travel norms

In 2024, the travel and tourism sector reached unprecedented heights, contributing an estimated $11.1 trillion to the global economy—an increase of $770 billion from prior records according to the report of The World Travel & Tourism Council. This growth reflects the sector’s vital role, comprising approximately 11.4% of global GDP and creating 348 million jobs worldwide. Despite this remarkable expansion, the dynamic tourism industry continues to shift, driven by varying visitors’ preferences, technological advancements, and external challenges.

As we approach 2025, key trends emerge that destinations, attractions, and tourism businesses must consider to thrive.

In this article, we will explore the most significant tourism trends in 2025 and suggest actionable strategies for stakeholders to adapt and succeed in the ever-evolving travel ecosystem.

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1 Increased adoption of AI

Artificial intelligence (AI) has been remodeling the travel industry by delivering advanced solutions for customer service, itinerary planning, and operational efficiency. According to the report of Precedence Research, the global generative AI market in travel is projected to grow from USD 894.33 million in 2024 to approximately USD 5,067.29 million by 2034, with a compound annual growth rate (CAGR) of 18.94% during this period. With smart booking systems, AI-driven language translation, or smart customer service chatbots, AI improves various facets of the tourism industry.

Tidio's study shows that approximately 88% of customers have interacted with a Chabot within the last year. Furthermore, as per a study by Travel Daily News, nearly 37% of travelers prefer using Chatbots for comparing travel options and making plans, indicating a high level of acceptance and engagement with digital technology in the travel sector. And, examples such as Expedia’s Chatbot, which has conducted over 29 million virtual conversations and saved 8 million hours in agent time by allowing travelers to resolve issues faster with self-service, highlight the impact of AI adoption in reducing operational strain.

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Since the adoption of (especially generative) AI in tourism is surging, it's becoming an integral part of various products and service, including the digital audio guide platforms. For instance, SmartGuide employs a specially trained AI model to offer personalized recommendations to visitors based on their preferences and past behavior to enhance engagement. Additionally, SmartGuide is set to launch its AI Chatbot soon, which will boost the visitors’ participation by offering custom itineraries within the SmartGuide app.

SmartGuide AI chatbot 

Notably, AI applications extend beyond customer interactions. According to the report of Global Market Insights, the AI in aviation market was valued at USD 686.4 million in 2022 and is expected to grow at a CAGR of over 20% from 2023 to 2032. This growth reflects the increasing role of AI in aviation efficiency and cost reduction because AI systems can process vast amounts of data to identify safety risks, predict equipment failures, and assist with proactive maintenance, significantly enhancing safety protocols in aviation operations. For instance, in January 2023, British Airways implemented AI to optimize its flight paths, achieving a 1% reduction in fuel consumption. This initiative saved an estimated 100,000 tons of fuel, translating to USD 10 million in savings. By improving resource allocation, enabling predictive maintenance, and promoting fuel-efficient operations, AI is driving substantial cost savings for airlines and contributing to market expansion.

Essentially, tourism entities can capitalize on these technological advancements by investing in AI-powered tools, adopting AI-based customer support, and predictive analytics, and training staff to operate AI tools to maintain a balance of efficiency and human connection.

2 Further prioritization of sustainability in tourism

The focus on sustainability in tourism continues to rise, reflecting travelers' increasing demand for eco-friendly options and ethical travel practices. According to the report of the World Travel & Tourism Council, the industry's greenhouse gas emissions accounted for 6.5% of global emissions in 2023, a notable reduction from 7.8% in 2019, showcasing a 10.2% drop in emission intensity. This indicates substantial progress in reducing the environmental impact of tourism while supporting its growth. According to Booking.com, 74% of travelers now believe urgent action is required to make more sustainable choices, compared to 66% in 2022 and 65% of travelers express a preference for accommodations with sustainability certifications, underlining the rising appeal of eco-conscious hospitality.

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Businesses in the travel and tourism industry are increasingly adopting green certifications, offering carbon-neutral accommodations, and promoting community-based tourism initiatives to meet these preferences. Digital solutions, such as paperless travel using electronic tickets, digital audio guides, and mobile apps, also play a key role in minimizing paper waste and contributing to eco-friendly travel. These efforts not only align with consumer values but also provide an opportunity to market sustainability transparently, building trust and loyalty among environmentally conscious travelers.

3 Financial adjustments in travel preferences

Global inflation and economic uncertainties are influencing travel preferences, compelling travelers to prioritize value and affordability. Many tourists are opting for shorter trips, budget-friendly destinations, and cost-effective journeys over luxury travel. A survey of Booking.com uncovered already in 2023 that 76% of respondents cited rising costs and the global energy crisis as factors impacting their travel budgets, while 64% believe the cost-of-living crisis will worsen. Additionally, 49% of respondents reported that sustainable travel options often feel financially out of reach even though there is a strong desire for responsible travel. Therefore, travelers are always looking for budget-friendly options and opting for accessible luxury, a trend expected to define tourism in 2025 as well.

To address these problems, tourism entities can introduce flexible pricing models, offering tiered packages to cater to diverse budgets. Discounts and promotional schemes attract price-sensitive travelers while collaborations with local vendors can create cost-effective, memorable offerings. Marketing strategies should highlight the value of meaningful travel over material luxuries, emphasizing the importance of connection and cultural enrichment. By focusing on affordability without compromising the quality of the experience, the tourism industry can adapt to these economic difficulties and continue to meet travelers' expectations.

4 Political instability and climate change reducing travel

Wars, natural disasters, and extreme weather events are affecting travelers’ choices and destination viability. As a result, the number of destinations once popular among travelers has considerably declined, with many regions struggling to maintain their appeal due to safety concerns, environmental degradation, or economic challenges stemming from these events.

The war in Ukraine, for instance, has disrupted tourism in Europe, with Russian and Ukrainian tourists—who collectively spent approximately $45 billion annually according to the article “How Russia’s war on Ukraine impacts travel and tourism“ —no longer contributing to the region’s travel economy. This has created a substantial revenue gap in many emerging European destinations. Safety fears also lead to behavioral shifts. For example, some regions adjacent to Ukraine reported up to 60-70% cancellations in group bookings for spring and summer seasons following the conflict's outburst.

Moreover, prolonged conflicts can damage a destination's reputation, making it difficult to attract tourists even after hostilities cease. Negative perceptions often linger for years, complicating recovery efforts for tourism-dependent economies. With a worsened situation globally, more and more destinations and regions may be threatened by the decline in tourism due to safety concerns.

Climate-related challenges add another layer of complexity. For example, In Greece, wildfires have forced the evacuation of over 2,000 holidaymakers, highlighting the vulnerability of tourism-reliant regions where the sector accounts for 15% of GDP, according to a study by Statista. Similarly, the Alps, which welcome around 120 million tourists annually and heavily rely on winter tourism for economic stability, face a great threat due to climate change, as per the studies of The Guardian. Furthermore, Carbon Brief reported that rising global temperatures have led to an 8.4% reduction in seasonal snow cover per decade over the past 50 years, risking the future of popular activities like skiing and snowboarding and affecting local economies.

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To tackle these issues in 2025, the industry must expand offerings by promoting regions less impacted by crises and natural disasters. Strengthening crisis management plans and transparently communicating safety measures can help rebuild traveler trust. Partnerships with insurers to offer comprehensive travel protection plans further mitigate risks, while inventive marketing efforts can reestablish affected destinations as attractive options. These strategies could help overcome immediate concerns as well as lay the groundwork for long-term resilience.

5 Balancing overcrowding and off-season decline

Many popular destinations face the difficulty of extreme visitor inequality, with overcrowding in tourism during peak seasons and noteworthy declines during off-peak periods. For instance, Croatia's Dubrovnik infrastructure struggles to accommodate the massive influx of tourists, especially after it gained international fame through Game of Thrones, which results in a deterioration in the quality of both the tourist adventures and the local residents' daily lives. However, off-seasons in Croatia suffer from a sharp decrease in visitors.

Promoting off-season travel can be a powerful strategy to encounter this matter and serve as the major tourism trend 2025. Featuring the tranquility and exclusivity of visiting during quieter months, along with offering more niche-focused travel packages, for example in the area of wellness, destinations can attract a new wave of tourists. Collaborating with local providers to create tailored retreats or nature-based therapy programs can help cater to travelers. In fact, the wellness tourism market, as reported by the Global Wellness Institute, is on track to reach $1 trillion by 2024 and $1.4 trillion by 2027, with an impressive annual growth rate of 16.6%. This makes wellness travel a key opportunity for year-round tourism.

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Moreover, destinations can diversify their off-season offerings by organizing various activities, such as outdoor adventures or hands-on workshops. According to the article "The Rise of Outdoor Adventure Tourism: What It Means for Campgrounds", the adventure tourism market is expected to expand extensively, with estimates indicating a projected market size of $1.3 trillion by 2026. This expansion is driven by increasing consumer interest in outdoor activities, particularly among younger generations such as Millennials and Gen Z, who prioritize experiential travel over traditional vacations. This could also help balance the tourism intensity in destinations.

In addition to promoting off-season offerings, implementing different pricing strategies can help balance visitor numbers across seasons. Investments in sustainable infrastructure, such as timed entry and visitor capacity limits, are essential for managing peak-season crowds. By combining these efforts with the development of off-season attractions like cultural festivals, outdoor activities, or wellness retreats, destinations and tourism businesses can ensure a more even flow of visitors, supporting local economies and preserving the integrity of tourist sites.

6 Digital nomadism becoming the new tourism norm

The rise of remote work has restyled travel patterns, with digital nomadism developing significantly. In 2023, the global population of digital nomads reached 40 million, and this figure is projected to escalate to approximately 60 million by 2030, as reported by WYSE Travel Confederation, signaling a transition towards a location-independent lifestyle. This trend is driven by professionals seeking destinations that offer reliable digital infrastructure. And contrary to stereotypes, many digital nomads are not solo adventurers. According to Forbes, 58.8% are married or in partnerships, and 70.4% of those with children have embraced this lifestyle alongside their families.

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To attract this burgeoning demographic, destinations can position themselves as remote-work-friendly by investing in high-speed internet and modern co-working facilities. Partnering with local businesses to offer long-stay packages can further support this initiative. Additionally, introducing incentives like tax breaks or residency programs tailored for digital nomads can enhance a destination’s appeal. By accommodating the needs of this flourishing segment, destinations can secure longer visitor stays, thus, benefiting local economies and establishing a steady influx of travelers year-round.

7 Growth in experiential and purpose-driven travel

Tourists are progressively seeking travel opportunities that go beyond traditional sightseeing, focusing instead on purposeful and meaningful engagements. This change reflects a desire to connect deeply with local cultures, acquire new skills, or contribute to community-driven projects. Volunteer tourism, or "voluntourism," exemplifies this trend. It is reported that 1.6 million people worldwide participate in volunteer tourism projects annually. Such travelers collectively spend an estimated £832 million to £1.3 billion per year, supporting economic development and impactful causes.

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To cater to this tourism trend in 2025, destinations can create programs that enable tourists to engage in volunteer work or attend skill-based workshops hosted by local experts. Underlining the noticeable benefits of such participation—such as contributions to education, conservation, or community development—can resonate with purpose-driven travelers. Marketing campaigns that showcase these impacts can further attract tourists who value meaningful connections and ethical travel. By promoting authentic and profound avenues, destinations can align themselves with this surging movement, ensuring long-term engagement with a conscientious audience.

8 Solo travel on the rise

Solo travel is gaining popularity, especially among younger travelers and digital nomad individuals seeking self-discovery and independence. According to the article “The European market potential for solo tourism”, the solo travel market has experienced a notable surge, with bookings increasing by 42% over the past two years, partly fueled by the pandemic's impact on travel habits. The solo travel service market is expected to propagate at a compound annual growth rate (CAGR) of 9.1% from 2023 to 2030, representing a key pillar of emerging tourism trends in 2025 and the high demand for solo adventures.

Destinations should market tailored itineraries and accommodations that cater specifically to solo travelers, offering the flexibility and support they need. Moreover, providing secure travel options and creating group activities can enhance solo travel adventures by developing networking opportunities and building a sense of community.

A survey by Road Scholar cited by Forbes found that nearly 30% of the company's tour participants travel solo, with 85% of those solo travelers being women. Additionally, Condor Ferries highlighted that 64% of global travelers are female, compared to 36% who are male, and estimated that women spent $125 billion on travel in 2023. Given the significant spending power of female travelers and their high participation in solo trips, destinations should prioritize creating special packages and initiatives that address the specific needs of female solo travelers, emphasizing their safety and comfort while discovering new experiences.

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9 Emergence of more smart destinations

Utilization of smart technology is another major tourism trend in 2025, altering how destinations cater to modern travelers. With advancements such as IoT-enabled smart kiosks, digital wayfinding systems including digital guides, and real-time crowd management tools, destinations are adopting technology to offer smooth and efficient travel experiences. For instance, smart transportation systems in destinations now rely on real-time data to improve public transit, as demonstrated by Miami-Dade's management of traffic flow at over 2,700 intersections for better safety and proficiency.

According to Cognitive Market Research, the global smart cities market will reach USD 552,158.6 million in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 16.00% between 2024 and 2031, indicating major investment in technology-driven urban and tourism solutions.

Furthermore, innovations such as integrated mobility solutions (combining multiple transportation options like public transit, bike-sharing, and ride-hailing into one unified platform), smart energy management systems (implementing energy-efficient solutions, including renewable energy sources and real-time usage monitoring through smart meters), and smart event management (employing technology solutions for managing events and festivals efficiently, including ticketing systems that reduce queues and improve visitor flow during large gathering) not only address the expectations of tech-savvy travelers but also support data-driven sustainable tourism practices, making destinations more attractive and future-ready.

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10 Resurgence of domestic travel

Domestic travel has emerged as a strong preference post-pandemic due to its affordability and convenience, allowing travelers to explore destinations without the complexities of international trips. It represents about 75% of global travel spending and has been particularly important for maintaining tourism revenue even in off-peak seasons.

According to the study by the World Travel and Tourism Council, in 2023, domestic visitor spending saw an 18.1% increase, surpassing pre-pandemic levels. This highlights the potential for destinations to attract local travelers during quieter seasons by offering tailored promotions and trips. While international travel also saw growth, with a 33.1% increase in spending in 2023, it still remains 14.4% below 2019 levels. This shift reflects a key segment within tourism trends in 2025, showcasing valuable opportunities for destinations and businesses to attract and engage local travelers with well-designed offerings.

Destinations can build on this trend by promoting lesser-known places and local attractions and encouraging staycations or road trips with value-added deals. Offering seasonal discounts and creating tailored packages for nearby getaways can keep tourism revenue stable throughout the year while supporting local economies.

11 Gaming and esports as a new travel force

Gaming and esports tourism are gaining momentum as a significant travel motivator for younger generations. The article “Exploring the Economic Impact of Hosting International Esports Tournaments on Tourism: The Future of Travel” highlights that with a global esports audience exceeding 500 million and an impressive annual growth rate of 24.4%, cities hosting major tournaments are positioning themselves as prime destinations in this rapidly expanding market.

Destinations can tap into this trend by promoting gaming hubs and integrating AR/VR attractions that appeal to tech-savvy travelers. The demand for accommodations tailored to gamers, such as hotels with gaming setups and high-speed internet, reflects the growing alignment of tourism and gaming industries. Uswitch states that in the UK alone, the gamer population is set to rise from 10.84 million to 11.56 million by 2027, emphasizing the need for traveling encounters designed for this demographic. These developments not only attract gaming enthusiasts but also drive economic benefits, presenting a valuable opportunity for the tourism sector.

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Are you ready to adapt to tourism trends in 2025?

The trends we foresee in tourism in 2025 reveal the undergoing changes in the industry, influenced by advancements in technology, shifting traveler interests, and global challenges. The adoption of AI and smart destinations, along with a focus on sustainability and balancing seasonal fluctuations, pinpoints the need for forward-thinking strategies. The popularity of digital nomadism, solo travel, and purpose-driven journeys such as voluntourism hints at travelers' evolving priorities. Meanwhile, the rise of gaming and esports tourism and renewed interest in domestic travel underscores how diverse activities are modeling the future of tourism. For destinations and tourism businesses, aligning with these trends offers a pathway to remain competitive and meet travelers' changing expectations.

Join the future of travel right away - start by digitizing your destination's or attraction's story on SmartGuide, an AI-powered digital guide platform with AR elements. Create immersive, personalized experiences for travelers and help them discover hidden gems, learn about local culture and history, and access special offers while supporting sustainable tourism practices.

By partnering with SmartGuide, destinations, and businesses can tap into the growing demand for sustainable tech-based solutions in the tourism industry.