Executive summary


THE TRAVEL industry has experienced a resurgence since the pandemic, with a rise in demand for experiences fuelling growth. 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. Travel providers, online platforms,


and destinations are continuing to invest heavily to attract holidaymakers and users. This period of growth has also allowed the industry to invest more in innovation and address existing challenges. However, economic forecasts paint


a mixed picture for the UK, as despite a weakening economy in the second half of 2024 with business and consumer confidence falling, modest growth is expected in 2025. Although consumers remain prudent, seeking value-for-money options or shorter breaks, they have continued to ring-fence their travel budget by compromising elsewhere. Corporate travel, particularly for large corporations, is expected to remain below pre-pandemic levels as cost control and sustainability remain top priorities. Sustainability is no longer a


buzzword but a core business imperative. Consumers are increasingly demanding sustainable travel options and investors are prioritising businesses with strong environmental, social and governance (ESG) credentials. The aviation and cruise sectors, in particular, face significant pressure to reduce their carbon footprint by investing in alternative energy sources and technologies. Hotels are also embracing sustainability initiatives, and certification schemes are gaining traction. Atol reform, when it comes, will likely


reshape the financial framework for package holidays, strengthening consumer protection but potentially increasing businesses’ compliance costs. Any changes to the Package Travel Regulations will require careful navigation. The Digital Markets, Competition and Consumer


4 Travel Weekly Insight Report 2025


Travel on track for a sustainable and prosperous future


Act 2024, now in effect, will continue to reshape the industry’s approach to pricing and customer interactions. And the CMA’s enhanced enforcement powers demand greater compliance, particularly regarding drip pricing and the use of fake reviews. Two years of experimentation with


Businesses that rise to the challenge of evolving trends, fresh technologies and new regulations can expect to prosper, says Deloitte’s Alistair Pritchard


artificial intelligence (AI) has started to highlight the most promising short-term applications for this technology. AI is rapidly transforming the travel experience, from hyper-personalised marketing and dynamic pricing to optimised operations and enhanced customer service. However, ethical considerations and data security remain paramount. The hospitality, aviation and cruise


sectors face an assortment of challenges and opportunities in 2025. To remain competitive, hotels are focusing on enhancing the guest experience, while airlines and cruise operators face geopolitical uncertainties. Sustainability is a key theme for all three sectors, with hotels implementing energy efficiency measures, waste reduction programmes and responsible sourcing practices; airlines grappling to meet SAF usage targets; and cruise lines investing to reduce their carbon footprint. 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. This report provides a comprehensive analysis of the key trends shaping the travel landscape in 2025, offering insights and recommendations to help businesses thrive in this dynamic environment. By embracing innovation, prioritising customer experience and navigating the regulatory landscape effectively, the travel industry can ensure DbVXVWDLQDEOH DQG SURVSHURXV IXWXUH


Alistair Pritchard, lead partner, Travel and Aviation, Deloitte UK


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