2025 Travel Trends Indicate Increased Spending, Event-Centric Itineraries, and Rising Concerns about Climate and Overtourism

The Points Guy has released its 2025 Travel Trends Report. This report reveals that despite increasing travel costs, the desire to travel remains strong. People are ready to spend more on meaningful trips that offer cultural and shared recreational experiences.

Contrary to previous trends, while airfare and lodging costs have decreased compared to 2023, consumers spend more on experiences, nightlife, and longer trips. Recreation and food and beverage spending increased by 4% from 2023 to 2024. Mastercard’s findings show that 12% of all tourism sales are now allocated towards experiences and nightlife. The average trip duration also increased, with the average trip in 2024 lasting 5.5 days, up from 4.5 days in 2020.

Event travel, spurred by music festivals and historical events, is becoming increasingly popular. Data from Vacasa shows that almost half of all travel is planned around a central event, underlining the importance of early bookings to avoid high prices and sold-out situations.

However, the surge in travel enthusiasm is making points and miles more complicated to obtain and use. Some popular travel cards’ credit card annual fees have increased by $100, and redemption rates are rising. Despite these challenges, a clear points and miles strategy can still offer significant value to travelers in 2025.

The report also highlights the increased attention to overtourism and climate change. Popular vacation spots seek a balance between economic benefits and community impact, leading to higher prices and limited availability. Travelers, too, prefer off-season travel and less popular destinations to avoid crowds and contribute to sustainability.

Climate change is also affecting travel decisions. “Coolcations” in colder countries during traditional summer months are becoming popular, with travel to Iceland and Finland increasing significantly. On the other hand, countries experiencing higher summer temperatures, like Greece, are seeing a decrease in tourism during peak months.

Government regulations are also impacting travel trends. Proposed legislation like the Credit Card Competition Act, which aims to lower merchants’ ” swipe fees when customers use a credit card, may affect reward programs and card perks.

Despite the industry’s rapid evolution and various challenges, enthusiasm for travel remains high. The report suggests focusing on points, miles, and loyalty programs will help consumers explore new destinations and interests in 2025.

Discover more at The Points Guy.