Booking Trends Shaping 2025

1. Luxury Travelers are Expanding their Horizons:
   • Overtourism & The Climate Factor: Travelers are rethinking where and when they travel, driven by overcrowding, climate concerns, and a desire for new experiences. While traditional favorites like Italy, France, and the Caribbean remain strong, demand is shifting toward alternative destinations and off-peak seasons. Shoulder season growth is +13% on average, with the biggest impact in April and May, followed by October. Booking windows remain compressed with nearly 30% of bookings made within two weeks of departure, so it’s possible there is more upside for Q2.
   • Rise of Coolcations: The trend of avoiding extreme summer heat and crowds continues. Over the last two years, bookings to destinations such as Patagonia or the UK & Ireland countryside during the summer months have grown nearly 40%. For 2025, the Nordic (+45% YoY) and Alpine regions (+15% YoY) are also seeing the benefits of this consumer trend.
   • Emerging Hot Spots: Destinations like Japan, Thailand, Australia, and the South Pacific are seeing significant growth, fueled by increased accessibility and cultural appeal.
2. Luxury Travel Remains Largely Local:
   • Travel spending is still domestic or regional, with the majority of global travel dollars staying within home markets. This trend is especially pronounced in the United States, China, and India, where large domestic markets and rising wealth are fuelling local luxury travel demand. In Europe and Asia, the majority of international trips remain within the region.
3. The Luxury Traveler is Evolving:
   • Luxury travelers are younger than expected. According to McKinsey and Company 80% of luxury travel spending comes from people under 60, with the largest cohort between 40 - 50. These travelers are multigenerational, seeking accommodations that offer space and privacy. Demand for suite accommodations is skyrocketing at LHW, up 30% YoY. In family-friendly coastal and lakeside locations, over 50% of stays are now booked in suite categories.

Global LHW Performance Snapshot

• United States: Domestic travel remains dominant (75% of bookings for the U.S. are by U.S. citizens), with beach destinations like Hawaii and Florida seeing over a 60% revenue increase. Economic pressures have inbound travel outlook mixed. Travelers from China, Middle East and Canada are showing signs of hesitancy, but European travelers remain undeterred with summer bookings forecasted to grow 18% YoY.
• Caribbean: Driven mainly by U.S. travelers, bookings are up 15% YoY, with long-haul guests (outside NAMER) opting for suite stays.
• Latin America:  Increased leisure travel is fueling a booking boost of about 25% for 2025 in this region.

• Northern Europe: Coolcationing drives over half of the summer revenue surge, with Scandinavia seeing a nearly 120% increase in traveler spend.
• Western & Southern Europe:Travel to Italy and Spain is up 20%, and high-end travelers from China and India are spending significantly more than European and American visitors.

• LHW bookings in the region are up more than 30% YoY, with Morocco leading the growth in luxury leisure travel (+55%). Travel Trade bookings are up 75%, driving ADR growth of nearly 15%.

• China: Both domestic and international demand are surging, with 2025 revenue already up nearly 60% YoY.
• Japan: International bookings dominate, making up over 90% of LHW revenue in this market, with U.S. and UK corporate travelers contributing to growth.
• Southeast & South Asia: Demand in Indonesia and Thailand is pushing ADR up over 20%, respectively, while India’s travel market continues its rapid expansion (+120% in 2024).

Luxury Travel Sees Solid Q1 Bookings Amid Cautious Optimism
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