USA Struggles With Tourism, Others Rise And Excel

  • Shifting Destination Preferences: Tourists are increasingly choosing destinations in Asia, the Caribbean, Africa, and parts of the Middle East and Oceania over traditionally dominant Western destinations like the U.S., driven by a search for better value, authenticity, and unique experiences.
  • European Market Volatility: Europe’s summer 2025 season is marked by last-minute bookings and price sensitivity. While Spain and Greece are performing strongly, Turkey is struggling with high inflation and reduced visitor numbers. The FTI bankruptcy is also causing significant market redistribution.
  • U.S. Losing German Travelers: German bookings to the United States have fallen by over 30% due to high costs, with these travelers preferring more affordable long-haul alternatives.
  • Value and Affordability as Key Drivers: Economic factors, including inflation and consumer uncertainty, are making affordability and perceived value primary drivers in travel decisions globally. Global travel trends for summer 2025 reveal a significant shift in tourist preferences, with economic pressures and evolving desires reshaping destination choices. While traditional European hotspots adapt, the U.S. faces challenges, and new value-driven locations are emerging.

The global travel landscape in summer 2025 is marked by significant shifts in tourist preferences, driven by a demand for affordability, authentic experiences, and value, leading to the rise of destinations like the Bahamas, Jamaica, Thailand, Vietnam, Cambodia, Sri Lanka, the UAE, Australia, and parts of Africa. These locations are attracting travelers seeking less stress, more culture, and often fewer crowds, contrasting with the U.S., which is reportedly struggling with high airfares and waning international appeal.

In Europe, the summer season is characterized by volatility, with last-minute bookings becoming the norm as travelers navigate high prices and economic uncertainty. While package holiday sales are up 4% in value, the actual number of travelers is down, with gains driven purely by price increases. Turkey, a traditionally popular value destination, is facing a 5% drop in visitor numbers compared to last summer due to nearly 40% inflation, despite discounts. Conversely, Spain (particularly Mallorca) and Greece are surging.

Greece, benefiting from travelers shifting from Turkey, remains attractive due to its perceived value and is building on a record of 5.4 million German visitors last year. Egypt and Bulgaria are also seeing strong double-digit growth as value alternatives. The recent bankruptcy of German tour operator FTI is further reshaping the European market, with competitors vying for its market share.

A notable trend is the decline in German bookings to the U.S., which have dropped by over 30% year-on-year, primarily due to high costs. These travelers are instead opting for more affordable long-haul destinations in the Caribbean, Thailand, and other parts of Asia. Cruises are also experiencing a resurgence in popularity. Overall, about 10-15% of German consumers are finding it difficult to afford travel but still intend to, reflecting a cautious yet determined traveler mindset.