Luxury tourism may be booming, but its definition is evolving, in line with the changing demands of today’s travelers. Nagi Morkos, founder and managing partner at Hodema Consulting Services, pinpoints eight trends that are playing a part in the recalibration of this key industry segment, from coolcation concepts to local community engagement.

Even though inflation is pushing up prices, large numbers of people are still dedicating a significant part of their budget to visiting places, near or far. Although final figures have yet to be issued, estimates from the United Nations tourism body UNWTO suggest that the number of overnight international tourists worldwide reached 1.286 billion in 2023, representing a 34 percent increase on the previous year’s figure. The luxury tourism segment is performing particularly well, with high-value travelers retaining strong purchasing power. So what are the luxury travel trends for 2025?

1- Avoiding the crowds

With more than 1 billion tourists having packed their suitcases in search of new sites last year, and in keeping with an upward trend already recorded in 2024, the ‘luxury’ is avoiding overcrowded sites. According to consulting firm McKinsey, 80 percent of travelers visit just 10 percent of the world’s tourist destinations. The higher-end clientele segment has always avoided the masses and, in the past, this was achieved mostly by picking secluded hotels or villas near to popular destinations or going on expensive trips such as safaris. However, these travelers are now going one step further by opting for less mainstream vacation spots and off-the-beaten-track locations. Choosing the mountains in the summer, long neglected in favor of beach and warmer destinations, is one growing trend. According to global luxury travel agency network Virtuoso, traditional go-to hotspots are increasingly being shunned by wealthier visitors, in favor of less famous destinations, such as Slovenia, the Netherlands and Scandinavian countries.

2- Beating the heat

Crowds are not the only thing that affluent tourists are trying to avoid. Hot weather, which used to be a sales pitch featured on posters with sunbathers on a beach, is becoming a turn-off for an increasing number of holidaymakers. The Alps, Switzerland, Canadian resorts and the Peruvian Andes are among the destinations now attracting tourists who are actively steering away from the heat. Scandinavian destinations have seen a 27-percent surge in bookings, along with Iceland. Northern Canada, New Zealand, Ireland, Scotland and even Greenland and Lapland, are becoming vacation hotspots. With global warming contributing to persistently high temperatures, cooler summer-climate trips, or ‘coolcations’ as they are now called, are set to remain a strong trend next year.

3- Focus on wellness

These unexplored destinations come with a variety of diverse and new activities. Lounging by the pool or sunbathing on the beach are being replaced by local adventures, such as hiking, animal spotting and outdoor sports. Personalized wellness experiences – increasingly popular in the last few years among affluent travelers – are expected to remain in demand next year. A growing number of tourists are in search of holistic havens to recharge their batteries. Asian countries, such as Thailand, the Maldives and Bali, are developing this segment, alongside key brands, such as Six Senses and Ritz Carlton. Digital detoxes are also being incorporated into programs, with more and more establishments offering secluded retreats to disconnect from technology and reconnect with nature.

4- Creating deeper connections

This trend of mindfulness favors a shift in the behavior of luxury tourists, with many now valuing experience over tangible things. Fueled by social media influencers sharing stunning destinations and experiences, this trend is especially evident among Gen Z travelers. Keen to avoid tourist traps in favor of authenticity, these visitors have different ideas about what they want from a vacation, such as engaging with local communities and taking part in social-impact activities. Curated luxury is being redefined; it is no longer about the hotel’s standards and sightseeing, but is, instead, becoming about the emotional impact of the experience and the connection visitors create with the place and its people. This trend is also having an impact on hotel services. Traditional 5-star establishments are now competing with luxurious villas offering staff, or alternative lodging options, such as high-end glamping or traditional housing. But of course, not everyone wants the same thing. According to McKinsey, Asian and Gulf high-end tourists still favor iconic sights and shopping over experience. More than two-thirds (69 percent) of Chinese respondents said they plan to visit a famous sight this year when asked, compared to only 20 percent of Europeans and North Americans.

5- The eco-luxury boom

The travel industry contributes up to 11 percent of global carbon emissions. An increasing number of people are aware of their environmental footprint and are choosing to make the environment one
of their top concerns when traveling, including tourists in the luxury segment. While not forsaking high-end standards, hospitality professionals are sharpening their focus on sustainability. Eco-luxury accommodations, such as solar-powered villas and eco-lodges, are increasing and can now be found on all continents, from EcoCamp in Chile’s Patagonia and Wolwedans Lodges in Namibia to Bay of Fires Lodge in Tasmania. Regenerative travel is the next step and is already in evidence, with hoteliers beginning to take part in local initiatives, including reforestation projects, beach clean-up efforts and contributing to the preservation of endangered wildlife. The transportation sector is also on board with the changes. Companies are starting to promote greener modes of traveling, such as electric private jets and hybrid yachts.

6- Cruising to success

Cruises are certainly a buzzword this year, with these vacations set to remain in demand, according to Virtuoso. The luxury travel agency network has already seen a sharp rise in bookings of 34 percent in premium ocean cruise bookings. Bookings in other segments of the cruise industry are also up, including: luxury ocean (27 percent); river (22 percent); and expedition (15 percent). Cruises to Northern cold spheres are on the rise, with companies partnering with hotels to offer tailored programs.

7- New categories of travelers Among the cruise clientele are growing  

Among the cruise clientele are growing numbers of solo female travelers, who are emerging as a new cohort of tourists. This trend is being fueled by the rising number of women who live alone and are taking the leap of traveling on their own. The increase in remote work is also supporting this trend. In addition, we have Gen Z, or Zoomers, arriving on the travel scene. This group has more flexibility, environmentally friendly views and stronger core values when it comes to traveling. Favoring experiences and meaningful trips, they are expected to generate a new trend by taking their children on their adventures, with multi-generational travels seen as a strong upcoming trend.

8- The exclusive club

In the realm of luxury, the one category in which tourists are showing few signs of changing their habits is the ultra-luxe segment. These mega-rich travelers want exclusive-use, tailored experiences, including transportation in jets, private cars, yachts and luxury residences with staff. Demand in this segment is surging, with Virtuoso reporting an 89 percent increase in requests. Fiji, the Maldives and African safaris top the list of most popular ultra-luxe destinations.