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Introduction
The year 2025 has been a period of profound change, marked by radical shifts across both political and economic landscapes. As persistent inflationary pressures continue to reshape how consumers live, work, and spend, a critical question emerges: how viable are vacations in this turbulent environment? This report, the second in our series following an in-depth look at the cost of living, housing, and groceries, now turns its focus to the travel sector, exploring the true cost of rest and relaxation.
With household budgets under increasing strain, the dream of a getaway often collides with the reality of rising expenses. Our research dives deep into how these economic uncertainties are influencing travel decisions worldwide. We investigate whether consumers can truly afford to take personal time off (PTO) in 2025, and if so, where they are choosing to spend it – opting for adventures close to home or still venturing to international destinations.
Methodology
Through surveys conducted across diverse markets including ANZAC, Japan, Singapore, Sweden, the United Kingdom, and the United States, we uncover the multifaceted reasons behind consumer travel choices. Is it primarily the escalating cost of travel and accommodation, or are factors like job security, health concerns, or a growing preference for local experiences playing an equally significant role? The findings provide a compelling global perspective on the pragmatic decisions individuals are making.
This report offers vital insights into how economic realities are compelling consumers to recalibrate their travel aspirations. It highlights a universal sensitivity to affordability, revealing how this influences everything from the decision to book time off to the selection of a holiday destination.
Download the report
Intrigued about inflation’s impact on travel? Head here and download the full report to understand the intricate dynamics shaping global travel in 2025 and beyond.
