Travel on track for a sustainable and prosperous year
Travel Weekly Insight Annual Report 2025
in collaboration with Deloitte
The travel industry has experienced a resurgence, with demand for experiences fuelling growth since the pandemic. Key indicators such as air passenger numbers and hotel revenue per available room have not only recovered but have, in many cases, surpassed 2019 levels. This period of growth has also allowed the industry to invest more in innovation and address existing challenges. Although the travel industry is expecting another year of strong performance in 2025, it needs to keep pace with the evolving economic and regulatory landscape, technological advancements, and an ever-more-demanding new generation of travellers. To unlock new growth opportunities while navigating the challenges and uncertainties that lie ahead, businesses need to embrace innovation and prioritise customer experience while effectively navigating the regulatory landscape.
Strong demand amid slow economic growth forecast
Despite a cautious economic outlook, demand for travel is expected to remain strong in 2025. While CFOs are prioritising cost reduction strategies and closely monitoring economic indicators, holidaymakers are showing a sustained appetite for travel, particularly for overseas adventures.
Investors are closely watching how travel businesses adapt and innovate to capitalise on this demand while navigating potential economic headwinds. The strategic use of technology, data-driven personalisation and a focus on high-growth segments like luxury travel and unique experiences are emerging as key differentiators in this evolving landscape.
As the year unfolds, the travel industry will need to strike a balance between capitalising on the current wave of wanderlust and making strategic decisions to ensure long-term resilience and profitability. The ability to adapt to changing consumer preferences, optimise operations for efficiency and accurately anticipate market shifts will be crucial for success in this dynamic environment.
Explore the market outlook and what it means for businesses.
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Accelerating AI adoption
The speed and ease at which Artificial intelligence (AI) tools are being implemented has significantly increased in the last year, from customer service to operational efficiency, sparking both excitement and nervousness. Yet, most businesses in the travel industry are still trying to work out what AI means for them and getting the foundations to experiment with it in certain parts of their business. Airlines and airports are dealing with legacy systems and fragmented data that hinder the seamless integration needed to release AI's full potential. At the same time, the industry must continue to adapt to the growing importance of biometrics and digital identification solutions, while grappling with the complexities of standardisation and global interoperability. Meanwhile, the promise of New Distribution Capability (NDC) technology, while attractive, remains tangled in questions of fragmentation and a clear path forward.
While embracing the potential of AI is crucial, it is equally important to address fundamental data challenges and ensure that technological advancements across the board contribute to a more efficient, safer, customer-centric and sustainable travel ecosystem.
Explore how technology is helping business growth and efficiency.
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Sustainability at the heart of growth and competition as regulations take effect
As sustainability and regulation converge with a wave of new legislation, from the EU's Corporate Sustainability Reporting Directive (CSRD) to the UK's own evolving framework, extreme weather events, rising sea levels and the accelerating loss of biodiversity are stark reminders of the need for immediate action. The industry is facing growing pressure from consumers, investors, and regulators to reduce its environmental footprint and contribute to a more sustainable future.
Complying with new reporting requirements, navigating the evolving world of sustainable aviation fuels, and tackling the issue of greenwashing are just some of the complexities facing travel businesses. Yet, amidst these challenges lies a significant opportunity: leading travel businesses are turning sustainability into a competitive advantage, pioneering new technologies, engaging travellers in responsible practices and ultimately shaping a more sustainable future for travel and for all.
Our thinking
