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The nice thing about Arival events is that everyone can take away learnings that are specific to their business and expectations. I am no different. As a platform provider and innovator, I was always interested in macro trends and what might affect our operator Partners. These days, as a Global Strategy Lead with Protect Group, I am more interested in traveler behaviours and what that means for risk tolerance, especially given the volatile political and socio-economic times we live in. What are travelers spending their money on, how far in advance are they booking, and how much are they spending? These all help shape how important products like Refund Protect are to travelers.
The latest reports from Arival including the “The 2025 European Experiences Traveler Outlook” and the “2025 U.S. & European Experiences Traveler Trends” both provide important information about what 2025 and beyond may look like. That said, the data used in both reports predates the current U.S. administration, which means that it does not take into account some of the unusual trends we are now seeing in travel patterns as they pertain to the U.S. travel market.
Overall, a key theme is the expected decrease in trip frequency for European travelers in 2025 compared to 2024, driven by macroeconomic uncertainty. The post-pandemic “revenge travel” era appears to be over now, and the reality of increasing inflation and cost-of-living concerns is driving travelers to do fewer trips. Certain segments (younger, affluent, and Spanish travelers) appear to be bucking this overall trend however, which does provide some interesting opportunities for operators and OTAs that are focusing on these demographics and markets. Trip length is generally increasing, particularly for older European travelers, while younger travelers prioritize shorter, more activity-packed trips. There are significant variations in trip spend and experience preferences across different European countries and age groups. Experiences, including tours, activities, and attractions, are playing an increasingly important role in destination choice, especially for younger travelers who are also driving a shift towards more immersive and interactive experiences and planning further in advance. US travelers, while generally taking fewer trips than in 2019, show an increase in average trip spend and place high importance on experiences.
Given these trends, operators have a clear opportunity to take advantage of these generational shifts in travel spend and preferences by tailoring offerings and marketing to more diverse markets, engaging travelers early in the planning process, and offering premium options such as refund protection to capture higher-spending segments.
How often do people travel
A significant trend for 2025 is the expectation that both U.S. and European travelers will take fewer trips than in 2024. This is attributed to a "volatile macro environment" and "restrained enthusiasm." In other words, post-pandemic “revenge travel” appears to have run its course. Most travelers who missed out on trips during COVID have now caught up, and the travel patterns appear to be returning to pre-pandemic levels. There are exceptions to the downward trend, however, including younger travelers (under 34), affluent travelers (€150K+ income), and travelers from Spain who all plan to travel with the same or greater frequency.
While Arival anticipates a general decrease in trip frequency for European and U.S. travelers in 2025 due to broad economic and political instability, specific U.S. policies are a significant, direct factor causing a sharp decline in travel to the U.S. from key source markets in Europe and Canada. This decline in travel to the U.S. directly contributes to the overall decrease in the number of trips taken by travelers from these regions who might have otherwise included the U.S. in their travel plans.
How much and how long they spend
While most European travelers took 1-3 trips in 2024, these trips were generally longer, averaging at least a week in length. What I find most interesting is that the average trip length tends to increase with age, with older travelers (55+) taking fewer but longer trips (average nine days) while younger travelers (18-34) take slightly shorter trips (average 8.1 days).
When it comes to spending on trips, UK travelers spent the most per trip largely due to the cost of air travel. German and French travelers also had notable spend while Spanish travelers spent the least, reflecting a more budget-conscious approach. Travelers aged 35-54 had the highest average trip spend mainly because those travelers were more likely to travel with families and also because they are in their prime earning years.
The experiences they prefer
European travelers prioritize experiences rooted in history and culture. The top categories for Europeans are Cultural Sites & Monuments, Sightseeing Tours, and Museums.
But there are some pretty profound differences between the ages when it comes to preferences. For example, younger travelers tend to be drawn to immersive, interactive experiences, wellness experiences, and festivals. While family aged travelers tended to favor family-friendly activities like amusement parks and museums. Older travelers prioritize cultural enrichment and museums.
How much travelers spend also seems to change with age. Young travelers are willing to pay more for elevated experiences. They tend to load their itineraries with the most activities and spend the most, seeking immersive experiences. Germans are particularly active, while UK travelers spend the most per activity. Younger travelers also visit the most attractions per trip and spend the most, looking for enhanced experiences beyond the ordinary.
The rising role of experiences in destination choice
- According to Arival, "57% of European travelers say experiences play a significant role in their decision on where to go."
- Activities and experiences are more important for many travelers than affordability, accommodation options, and accessibility. This is a particularly interesting discovery for anyone who markets a destination or is looking to differentiate themselves. Combining the importance of experiences with targeted campaigns focused on certain age groups could help marketers to drive interest around established or even new destinations that have struggled to draw attention from travelers.
Experience planning behavior
- Historically, experiences were planned closer to the trip or in the destination. However, this is changing, particularly for younger and middle-aged travelers, with two in three mostly planning activities ahead of time. This is particularly important for OTAs or operators with strong brand awareness because it means that travelers are actively searching for and booking their experiences online, most likely on their mobile devices. Investing in tools that promote online booking and provide customers with the confidence to book in advance, like offering refundable options such as refund protection, will help drive this trend forward.
What this means for operators
- Tailor Offerings - Understand where your customers are coming from and what their purchase and travel patterns are like. Tailor your offerings to these customers and provide customer-centric services.
- Develop Family-Focused Options - This demographic spends a lot on experiences. If you offer a family oriented product, be sure to market to this group of customers and ensure that your offerings are tailored to service them effectively.
- Introduce Premium Offerings - Affluent young travelers are looking for VIP and exclusive offers that cater to their need for immersive experiences. Consider developing products for this valuable and engaged segment.
- Ensure Seamless Booking/Visiting - Use technology to streamline the booking, redemption, and visiting experience for your guests. This technology should make all these critical steps seamless and easy for the customer.
- Engage Early in the Funnel - Work with your DMO or other partners that are part of the inspiration step of travel planning and discovery. Make sure that you are creating content that can be accessed on platforms like YouTube and TikTok where travelers are searching for travel-related content.
European and US travelers are dynamic. While a general decrease in trip frequency is anticipated, opportunities exist within specific segments and through tailored offerings. The growing importance of experiences in destination choice, the generational shift in preferences towards immersive activities and advance planning, and the varied spending patterns across countries and age groups all highlight the need for targeted strategies by experience operators. Understanding these nuances and leveraging digital channels for early engagement and booking will be crucial for success in the coming year.
