As the holiday season approaches, a new study from digital marketing specialist Sojern reveals that travelers are eager to embark on their journeys, despite lingering economic challenges. The report highlights a significant shift in consumer preferences, with a marked increase in road trips as many travelers prioritize budget-friendly options amid inflationary pressures.
According to Sojern, travelers in 2024 are opting for road trips rather than air travel, with the demand for upscale and luxury accommodations rising by 1.7% and 1.4%, respectively, while economy lodging prices have remained stable. This trend underscores a growing appetite for higher-end experiences among those willing to invest in their travels.
A Shift Towards Popular Destinations
The study indicates a resurgence in interest for popular urban destinations as travelers seek immersive holiday experiences. “Unlike during the pandemic, when travelers favored less crowded locations, many are returning to well-known cities and are ready to pay a premium,” said Noreen Henry, Sojern’s Chief Revenue Officer. This was evident during Taylor Swift’s Eras Tour, which sparked a 65% increase in booking interest for European cities and a staggering 154% rise in hotel room prices. The current holiday season shows similar patterns, with travelers seeking enriching experiences through events and festive outings.
US Domestic Travel on the Rise
For the Thanksgiving holiday, Sojern estimates that approximately 4.7 million travelers will take to the skies. Domestic flight bookings have increased by 4% compared to the previous year, with Orlando emerging as the top Thanksgiving travel destination. In contrast, Christmas travel within the US has declined by 15%, while interest in international destinations like Europe and Asia has grown by 2% and 9%, respectively. Mexico, the UK, Canada, and the Dominican Republic are leading choices among international travelers.
European Travelers Diversify Their Plans
Europe’s charm, marked by vibrant holiday markets, continues to attract global visitors. However, domestic flight bookings within Europe have decreased by 26%, suggesting a preference for long-distance travel or local experiences. Notably, flight bookings to Asia (up 14%), Latin America (up 3%), and conflict-free regions in the Middle East and Africa (up 3%) have increased. London stands out as the leading European destination, with 79.1% of flight bookings and 89.7% of hotel reservations during the holiday season.
Germany and Austria remain popular for international travelers, with a 7% increase in visits to Germany and Vienna capturing 80% of Austria’s holiday bookings. Paris, riding the momentum from the 2024 Summer Olympics, remains a sought-after destination, though domestic travel in France has dropped by 41%.
Emerging Destinations Gain Popularity
In the Middle East, the upcoming Abu Dhabi Grand Prix is boosting travel interest in the UAE, with flight bookings increasing by 9% for December. Saudi Arabia is also experiencing a surge in demand, with international flight bookings rising by 15% and regional travel soaring by 38%.
Changing Trends in Skiing
Skiing preferences are evolving, with American and Canadian ski destination hotel bookings falling by 9% to 18%. In contrast, Japan is emerging as a top ski destination, boasting a remarkable 417% increase in hotel bookings compared to last year.
Chinese New Year Travel Outlook
As the 2025 Chinese New Year approaches, which falls between January 28 and February 3, travel across the Asia-Pacific region is anticipated to rise. However, current hotel bookings in Singapore are down 11.55%, with a notable 26% decline in domestic travel. Despite a drop in flight bookings by 18.82%, hotel reservations have risen by 10.41%, indicating a preference for domestic travel likely via rail or car.
Looking Ahead to 2025 and Beyond
Sojern notes a shift toward experience-driven travel, with consumers increasingly willing to invest in attending concerts, events, and major sporting occasions like the FIFA World Cup. Following the remarkable 541% increase in international lodging searches during the 2022 Qatar World Cup, the upcoming 2026 event in Canada, Mexico, and the US is expected to draw even more travelers.
As expectations rise, the travel industry is adapting, integrating innovative technologies such as Generative AI to personalize guest experiences. This year is just the beginning, with advancements in technology set to reshape travel experiences through 2025 and beyond.
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