Travelers Cut Back in 2025 but Prioritize Experiences

As travelers head into the summer 2025 season, economic concerns are prompting fewer and more budget-conscious trips, according to a new Arival study. However, experiences are taking center stage in travel planning, especially among younger travelers. Sixty-five percent of survey respondents said that experiences significantly influence where they choose to travel.

The study revealed a sharp generational shift, with Gen Z and younger millennials increasingly booking tours and experiences in advance—contrasting older travelers who tend to book after securing flights and accommodations. Categories like culinary experiences, festivals, local interactions, sporting events, and thematic tours are seeing the fastest growth.

Arival emphasized that this trend signals a new travel mindset, with experience-driven travel becoming a key differentiator. “Operators that redesign offerings to reflect interests such as music, food, and sports will thrive in an increasingly competitive environment,” the report noted.

In response, major travel brands are investing more in experience platforms. Airbnb is preparing to expand its reimagined Experiences platform and has called on local guides and operators to express interest ahead of its “Summer Release” event in May. Similarly, Tripadvisor expects its experiences division to be the largest revenue contributor in 2025. The company recently appointed former Booking.com executive Pepijn Rijvers as president of its Viator brand.

Despite slower organic market growth and pressure on pricing, experience-based travel is poised to dominate. “The shift is undeniable,” said Arival, pointing to increased personalization, dynamic offers, and a long-term opportunity for brands that embrace interest-based and modular experience strategies.

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Travelers Cut Back in 2025 but Prioritize Experiences

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