Tighter budgets and the rise of value-oriented travel
29% of respondents expect to cut back on travel expenses this season, but over 35% plan to increase their travel budget compared to last year. Travelers seek budget friendly options without compromising quality, pushing businesses to offer flexible pricing and tiered services.
Leisure vs corporate travel budgets
Leisure travel budgets
Leisure budgets will grow just 1% in 2025, with declines in France (-1.7%) and Italy (-0.8%) while the UAE and Spain see growth. Inflation and budget constraints drive shifts in behavior:
- Budget-friendly accommodations - 42%
- Shorter trips - 33%
- Less frequent travels – 32%
- Budget-friendly transportation- 21%
- Closer destinations – 25%
Corporate travel budgets
Corporate travel budgets are up by 3% globally, driven by companies reconnecting teams, reengaging clients, and fueling partnerships. Growth is highest in the UAE (6.5%) and the UK (6.1%) followed by the US (3.7%) and Spain (3%). Corporate travel budget cuts stem from:
- Increased remote work -26%
- Reduction in per-diem allowances - 24%
Winning big with personalization
The future of travel is personalization, where value—not just price—takes center stage.
Music tourism: Fans traveling for concerts will pay 25% more for accommodation and flights.
Sports tourism: Over 40% of sports fans will pay a premium of 31% for accommodation and 28% for flights to watch live events.
Rising demand for sustainable travel
70% of travelers seek companies offering sustainable options.
Our study shows that 35% of respondents are willing to pay a 27% premium for greener flights while 43% are willing to pay up to 34% more for eco lodgings.
Top countries paying a premium for sustainability:
- Flights: US (27%), UK (24%), UAE (22%)
- Accommodations: US (34%), UK (33%), Germany (29%)
