Skift’s latest briefing covers the trends and developments in the travel industry at the beginning of 2025. The year 2023 was characterized by revenge travel, followed by normalization in 2024. The Head of Research at Skift, Seth Borko, discusses the Global Travel Outlook 2025 report, which includes a survey of travelers from five countries. The survey results indicate that respondents plan to spend 9% more on travel in 2024, with travelers in India expecting to spend 14% more, the highest increase in the survey. Despite positive outlooks, the industry will face challenges such as higher labor costs and slow economic growth in Europe and China.
Accor, a major player in the hospitality industry, is focusing on expanding its luxury portfolio to compete with rivals Marriott and Hilton. At least 10% of Accor’s more than 800,000 rooms are in the luxury segment, a significant increase from previous years. CEO Sébastien Bazin is planning to launch the Orient Express brand, which will include hotels, trains, and yachts. This move will position Accor in the ultra-luxury segment, with rooms typically priced above $1,000 per night, alongside their existing brand Raffles.
Casago, a vacation rental management company, has made headlines with its agreement to acquire Vacasa for around $128 million. As part of the deal, Casago plans to sell off some of the merged company’s local operations and enter into franchise agreements with new owners. This strategy will allow the new company to generate revenue from selling local assets and earn franchise fees post-sale. The final price of the acquisition may be adjusted based on factors such as homeowner churn and Vacasa’s financial liquidity.
In summary, the travel industry is entering 2025 with optimism, as travelers are expected to increase their spending on travel. However, challenges such as rising labor costs and economic slowdowns in certain regions may impact the industry’s growth. Accor’s strategic focus on expanding its luxury portfolio and launching the Orient Express brand reflects its commitment to capturing a larger share of the ultra-luxury market. The acquisition of Vacasa by Casago signifies the continued consolidation in the vacation rental management sector, with plans to optimize operations and drive growth through franchise agreements.
As the year unfolds, these developments will shape the trajectory of the travel industry, influencing consumer behavior, market dynamics, and competitive strategies among key players. Stay tuned to Skift for the latest updates and insights on the business of travel in 2025.
