Ever get the feeling that travelers are clutching their wallets just a little bit tighter these days? You’re not imagining it.
Unfortunately, the post-pandemic travel boom has cooled off, and overall travel spending may actually be down. But that doesn’t mean people have stopped traveling altogether. It just means they’re changing how they spend on travel. In true #tourismfam fashion, let’s break down what’s happening and see how you can adjust your marketing game.
Addressing Budget Constraints: Strategies for Tourism Marketers
There are many factors to keep in mind right now, but one of them may be the cost-of-living crisis. Per YouGov, one survey found that a majority of people are cutting back on travel because everyday expenses are eating up their cash (59% cite high living costs) – with 38% saying they simply can’t afford to travel right now.
What’s a good, conscientious tourism marketer to do when your audience’s wallets are screaming “nope”? Highlight value in your offerings. Do not drop prices to rock-bottom (this will hurt your business); instead, showcase why each dollar spent on visiting your destination, tour, or attraction is totally worth it.
For instance, could your ticket price include a free local treat or an extra hour of fun? Shout that out!
Show folks that even on a budget, an experience with you gives more bang for the buck. Consider creating budget-friendly packages or promoting off-peak deals – anything that helps cost-conscious travelers still get a great experience without breaking the bank.
The goal is to help folks feel smart for spending with you, even when money is tight.
Encouraging Early Bookings Amid Inflation Concerns
Remember when procrastinating on booking a trip could score you a last-minute deal? Those days might be fading. Per Sabre, early bird bookings are on the rise.
Why the hurry? Fear of rising prices! Per ILHA, a study noted that people are citing fear of inflation as a concern for booking early.
For you, the marketer, there’s opportunity. Roll out the red carpet for “early birds” with special incentives: perhaps a small discount for booking X months ahead or an exclusive perk for early planners. And even without a discount, using messaging creates a friendly urgency – something like, “Plan ahead and save your spot (and your budget!).”
Since travelers are already inclined to book early to dodge inflation, your job is to make your offer the no-brainer choice to book now rather than later.
Basically, meet them at their fear of price hikes and show how booking with you ASAP is the smart move. They’ll feel savvy, you secure the business. It’s a win-win!
Catering to Travelers Seeking Premium Experiences
Here’s a surprising two-sided trend: a chunk of people are bowing out of travel entirely but those who are still traveling? They may be ready to splurge a bit more.
It’s like a travel version of “go big or stay home.” If they’ve decided the trip is worth taking, they want to make it count.
Think about it: after years of pandemic hassles and now shelling out extra for eggs and gas, a vacation is a hard-earned treat.
So, if they’re going, they might indulge in the nicer hotel, the cool add-on tour, or the fancy dinner because who knows when the next trip will be? They’re spending consciously, but they are spending and investing in meaningful experiences.
For tourism brands, this is your cue to offer upgrades and premium experiences proudly. Don’t shy away from marketing your higher-tier packages or unique add-ons. Your customers are consciously deciding to allocate more money to make their trip unforgettable, so help them do that! Promote that VIP behind-the-scenes tour, the luxe private tasting, or the family bundle that includes extra goodies.
Importantly, note that you’re adding value and maximizing the experience rather than just an upsell. (You do not have to slash prices.) For example: “Turn your trip into a once-in-a-lifetime memory with our VIP package” sounds a lot better than “Add this expensive upgrade.” The travelers who have the means (and motivation) to travel now are looking for quality and memorable moments. Show them you can deliver exactly that, and they’ll happily pay a little extra for the magic.
So, what’s the big picture here?
Travelers are still out there chasing adventures, but how they do it is evolving. They’re budgeting carefully, booking smarter, and splurging more purposefully.
In a nutshell, they’re being more intentional about their travel choices than ever before – and that is a GOOD thing. It means if you can tune into what they care about (saving money, avoiding hassles, getting quality), you can meet them exactly where they are and give them exactly what they need.
Staying ahead of these trends means reassuring your travelers that you “get it.”
Now, when your market sees a promo or content from your brand that resonates with their current worries and wishes, it’ll build even more trust and excitement. People will think, “Hey, this brand understands me.” And that’s where you want to be.
And, as always, if you need help turning these travel trends into actionable marketing results, we’re here to help make it happen. #TeamVonMack eats, sleeps, and breathes this type of stuff. So whether it’s brainstorming a value-packed campaign, tweaking your messaging for early bookers, or pretty much anything else under the sun when it comes to marketing, just give us a shout.
FAQS
Q: How does inflation affect travel spending?
A: Rising inflation leads to increased travel costs, prompting travelers to seek more value-driven options or reduce their travel frequency.
Q: What strategies can tourism marketers use during high inflation periods?
A: Marketers can highlight value-added services, offer early booking incentives, and promote premium experiences to attract budget-conscious travelers.
Q: How are rising living costs affecting travel plans in 2025?
A: In 2025, 59% of individuals cite high living costs as a reason for reducing travel, leading to more budget-conscious tourism choices.
Q: Why are travelers booking vacations earlier in 2025?
A: Concerns over inflation and potential price hikes are prompting travelers to secure bookings earlier to lock in current rates.
