The number of air travelers will exceed five billion for the first time in 2025, as per a projection by the International Air Transport Association. However, this projection overlooks the growing popularity of train travel and staycations, which continue to capture a significant share of the travel market. Additionally, luxury leisure hospitality, a rapidly expanding global segment, is expected to increase by over 42% in the next four years. This growth spans key categories such as aspiring luxury, high-net-worth, very-high-net-worth, and ultra-high-net-worth travelers and is expected to generate $ 391 million in 2028, according to McKinsey & Company.
Here are the luxury travel trends to watch out for this year, according to a report by Henley & Partners.
Sarah Morgan, who has over over four decades of experience in advising clients in luxury travel on their brand strategy and communications, decodes the 2025 bucket list.
Uncharted paths
An offshoot of overtourism is the growing desire to discover off-the-beaten-track destinations particularly during off-peak times. Discerning travelers are increasingly seeking out locations that deliver high standards while being far removed from the crowds. For these visitors, travel is as much about discovering an authentic ‘sense of place’ as it is about finding a peaceful escape from other tourists.
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Clearly some high-profile destinations have fallen victim to overtourism, resulting in environmental strain, local resistance to unsustainable visitor numbers, and soaring residential property prices. In parts of Europe, particularly in Portugal and Spain, tensions have resulted in protests, prompting travelers to explore alternative destinations.
In response, several countries have crafted thoughtful tourism-demand strategies that tap into the trend of exploring uncharted destinations. Costa Rica, Croatia, Peru, the Philippines, Rwanda, Slovenia, and Vietnam are all expected to reap the benefits of this in the coming years.
The rise of branded residences
An exciting new trend in luxury and ultra-luxury travel brands is their expansion into residential properties. With privacy and hyper-personalization being priorities for high-net-worth travelers, exclusive-use residences are a sweet spot that provide a luxurious ‘home from home’ experience with full hotel-style amenities and concierge services.
In the last decade, the number of branded offerings across the world has grown by 198%. In addition to well-known hotel brands such as Ritz Carlton, St. Regis, and Waldorf Astoria growing their global residences, non-hotel luxury brands such as Aston Martin, Baccarat, and Fendi are also making a mark with expansive portfolios in exclusive destinations.
Today, there are around 700 branded residences globally, with an equal number scheduled for completion by 2030, reflecting a sustained trend for blending the traditional luxury hotel model with long-term residential living.
‘Silver bullet’ wellness
The hunger for well-being knowledge and life-enhancing programs and experiences has surged post-pandemic. According to the Global Wellness Institute, wellness tourism is projected to reach USD 1.4 trillion by 2027.
Wellness travelers comprise a broad range of individuals seeking bespoke health and longevity programs across the globe, from juicing and detoxing retreats to life coaching and personalized roadmaps, as well as full-body analysis and brain boosting treatments.
For luxury wellness travelers, destinations such as Germany, Spain, Switzerland, and Thailand are leading the way, offering everything from ‘monk-level’ meditation retreats to the very latest genetic testing.
New terms such as ‘transformational’ or ‘soft travel’ are emerging to describe this trend, all with the same focus, namely, helping travelers achieve a greater sense of physical and mental well-being. However, wellness travel does split into two distinct camps: one that embraces a science-based or technological approach, and the other that adheres to a more traditional spiritual ethos. From cold-water immersion, sound baths, and forest bathing to the latest innovations in scientific tests and biometric scans, travelers simply need to choose their ‘silver bullet’.
Mood boosting
An interesting shift in travel motivation is the move away from fulfilling traditional bucket lists towards exploring experiences that enhance mood and emotional well-being. Key drivers now include curiosity, exploration, and the desire to feel anticipation, excitement, joy, and a connection with nature.
Wilderness tourism in non-commercialized destinations, and astro tourism, which involves traveling to observe the night sky and connect with the cosmos, are becoming an important focus for many destinations aiming to attract travelers in search of mood elevation. Other mentally uplifting experiences include attending global festivals, concerts, and major sporting events. Travelers who are more active are discovering the joys of ‘racketeering’ — the booming trend of padel tennis or pickleball players who globe-trot to meet and play with like-minded enthusiasts.
Another notable growth area is purposeful travel, which focuses on life-changing experiences. This can include pilgrimages such as walking Europe’s Camino de Santiago, hiking Peru’s Inca Trail, or opting for voluntourism or conservation travel where participants contribute to reinvesting in communities, cultures, and landscapes.
Ethics meet aesthetics
Within the luxury and ultra-luxury travel segment, travelers’ purpose-led values are propelling change, aiming to balance the desire for aesthetic excellence without sacrificing ethical practices.
While no international framework is yet operational, most destinations, hotels, resorts, and transport providers are championing the drive to reduce their carbon footprints and offset traveler impact wherever possible. Two notable examples of innovation in this space are The Soneva Group and The Slow Hotel Group.
Greenwashing remains a challenge, but as savvy Gen X, Y, and Z travelers demand higher standards of responsible tourism, the industry is increasingly being held accountable to meet a benchmark that satisfies their need for transparency.
This conscientious consumption is now being celebrated and a more ‘sensitive luxury’ is emerging.
Climate change impact
The rise in soaring temperatures in certain parts of the world has given birth to the concept of ‘coolcations’, where travelers head to cooler locations to seek refuge from the intense heat.
One beneficiary of this trend is the Alps, which has seen a significant boost in the number of summer travelers. Alps in Luxury, a leading provider of summer chalets, has seen a 25% increase in bookings year on year in recent times, while the French Alps recorded 23 million overnight stays in 2023. Families are also being drawn to European and Scandinavian countries where they can enjoy various activities in cooler, less crowded destinations.
The challenges of hotter weather have also impacted the industry significantly. In just two examples from 2023, Greece evacuated 19,000 holidaymakers due to wildfires on the island of Rhodes, and flights in the US were grounded when temperatures soared to 46° C. Extreme seasonal weather looks set to continue, so operators will need to prepare for ever-shifting changes in demand and seasonality.
Another new trend is the growing popularity in ‘shoulder season’ travel — vacationing in the off-peak months — in order to avoid the crowds and take advantage of the extended periods of warmer weather.
Adventuress travel
Solo female travel is another growing phenomenon driven by greater financial independence, better connectivity, and an increase in safe spaces for women. More female travelers are roaming alone or traveling with friends or other like-minded women.
According to the Solo Female Travelers Club, Google searches for the term ‘solo female travel’ had grown 6 fold during the 4 years proceeding Covid 19 with early 2024 stats surpassing the pre pandemic 2020 peak. In fact, current Google stats for global searches for ‘solo women travel packages’ are up 600% year on year.
To cater to this growing audience, operators must focus on creating experiences that empower women while meeting their needs for privacy, safety, and all-female staff.
Evolving borders
As destinations worldwide address the impact of overtourism, border policies are evolving to balance security with the need to attract valuable international tourism. While designed to streamline entry processes and enhance safety measures, the introduction of new systems such as electronic travel authorizations (ETAs) have added layers of security and administrative requirements for travelers from visa-free countries and can create bottlenecks at borders. The transition to electronic entries will continue to impact ease of travel until automated processes are established. For luxury travel, this could mean increased involvement from operators in visa and entry processes.
The UK’s ETA extension, which came into force on 8 January, and Europe's ETIAS, scheduled to launch in the second quarter of 2025, are just two examples of evolving border entry systems. While these initiatives may be criticized for imposing new requirements on travelers from visa-free countries, they have been designed to streamline entry processes and enhance security.
The Future of Luxury Accommodation
Today’s luxury seekers are drawn to authentic experiences, connection, and environmental responsibility.
A significant trend is the rise of hotel villas, reflecting the demand for privacy and flexibility. Renowned brands such as Aman, Four Seasons, and Six Senses are expanding their portfolios to include luxury villas, catering to travelers who prefer home-like comforts with hotel-style amenities. This model enhances profitability, as these villas can be marketed as dual-use properties, allowing owners to enjoy them while also renting them out.
The concept of “slow travel” is gaining traction, with travelers opting for longer stays in private accommodations, further boosting the appeal of villas. Many luxury villas now provide dedicated workspaces, catering to the growing “workation” trend where guests blend work and leisure.
Additionally, the luxury vacation rental market is evolving. Once exclusive to the wealthy, it has expanded significantly due to the digital transformation brought by platforms like Airbnb. The pandemic accelerated this growth as travelers prioritized private, self-contained spaces over traditional hotels. This shift has led to a surge in demand for larger properties suitable for group gatherings, weddings, and corporate retreats.
Affluent travelers increasingly prioritize privacy and security. Enhanced measures such as round-the-clock security, biometric locks, and exclusive access properties are becoming essential. High-profile guests seek accommodations that ensure discretion, often opting for entire boutique hotels or resorts for their stays.
Moreover, technology is redefining luxury hospitality. Smart room controls, contactless check-ins, and AI-driven services enhance convenience and personalization. Innovations like virtual reality tours allow prospective guests to explore properties before booking, elevating the overall experience.
Sustainability is also a significant factor. Luxury properties are aiming for carbon neutrality, adopting renewable energy sources and waste-reduction strategies to meet the expectations of eco-conscious travelers. Experiential travel is on the rise, with guests seeking deep engagement with local cultures, which luxury accommodations are now keen to facilitate.
"Experiential travel, whereby travelers engage deeply with the local culture, cuisine, and, or nature, is increasingly central to the luxury market, and accommodation providers are offering new levels of customization that allow guests to experience all things local. For example, a luxury villa concierge team in Umbria may include a personalized private vineyard tour limited to their villa guests," said Wolf Wörster, a highly experienced and well-connected source for ultra-high-net-worth individuals, attending to their needs and desires related to luxury and ultra luxury short- to medium-term accommodations.
As the landscape of luxury hospitality continues to evolve, providers will focus on authenticity, privacy, and hyper-personalization, reshaping what it means to travel luxuriously. This evolution reflects a response to modern travelers' desires for unique, tailored experiences that blend comfort, adventure, and a strong sense of place.