Global Insights February 2025

Between the global AI race, trade tariffs, the market’s reaction, and inflation concerns – the global travel economy faces risks and uncertainty. Still, the overall macroeconomic projections show resilience. The U.S. economy is poised to grow more than 2% this year. For our region, we are cautiously optimistic with international inbound travel projected to reach $10 Billion and welcome over 7.5 million international visitors in 2025.

For travel trends, consumer behavior is evolving at lightning speed. Think Jetsetting, Sleep Tourism, One-click Trips, FOMO (fear of missing out), JOMO (joy of missing out), to name a few. Travel is both a source of joy and a human need. Travel South Region continues to thrive by offering a rich mix of Americano experiences crafted with a rich heritage, thriving culinary scene, and distinct Southern hospitality.

Moving into 2025, we delved into an overwhelming number of trends and distilled the most relevant here. Some are intriguing – both Expedia and Trip Advisor came up with some clever, catchy names in their trendcast reports. We adore them! For strategic clarity, we are choosing to look inward first and define the trends that matter most for our macro exposures globally. Below are our core convictions for this year.

1. Culinary Sophistication: More Than Just Comfort Food – Exploring Identity and Connection through Cuisine

According to Euromonitor’s 2025 Consumer Trends, today’s travelers want elevated foodie experiences that still feel genuine. Traditional “comfort foods” will always be a highlight of Southern cuisine, but there’s growing international demand for a more sophisticated twist—locally sourced produce, diverse local dishes, creative spins on traditional recipes, and region-specific flavors that tell the story of people and place.

Opportunity Spots:

  • Foodie Travel Experiences: Highlight the diversified cuisines of the region. Think curated farm-to-table experiences, chef-led tasting events, and “meet the maker” experiences at restaurants, local distilleries, or craft breweries.
  • Taste of Place & Authentic Narratives: Promote products made locally. Think Tony Chachere’s and Cafe Du Monde, highlighting the unique tastes of Louisiana. Or fried chicken in Gordonsville, Virginia, where African American women thrived with trade and travel after the Civil War and became culinary champions for decades. 

2. Live Tourism: Immersive Events That Can’t Be Streamed – They Must Be Lived

In Skift’s 2025 Megatrends, “Live Tourism” emerges as a key driver—a term we love. People want in-person experiences that can’t be replicated on a screen. The Travel South Region has a rich tradition of festivals, concerts, sports, and cultural gatherings that truly come alive in-person. Looking ahead, Atlanta and Kansas City will host eight matches in the 2026 World Cup, offering a chance to showcase their hospitality on the global stage. Opportunity Spots:

  • Festivals: From jazz festivals in New Orleans to country music celebrations in Nashville or Bristol and college sports rivalries in Alabama, major events draw international visitors—especially when promoted as must-see experiences.
  • Community-Driven Activities: Smaller “nano” or neighborhood gatherings offer a more intimate charm. Think Friday night blues gigs in small-town Mississippi or harvest celebrations in rural Georgia.
  • Cultural Tie-Ins: Highlight local history and heritage in event programming by featuring Civil Rights landmarks and centuries-old traditions to showcase the region’s charm.

3. Luxury as Value: The Upscale Experiences that Nourish Our Sense of Being

McKinsey’s Future of Travel insight shows that luxury travel is growing fast, yet not all travelers define “luxury” as marble bathrooms with gold faucets. Increasingly, the emphasis is on exclusive experiences,  genuine hospitality, cultural insight, sophisticated simplicity, and comfort at a compelling value. The Travel South Region can excel here, offering value compared to major global cities—with its hidden gems, gorgeous outdoors, and exclusive experiences.

Opportunity Spots:

  • Boutique and Historic Properties: Renovated antebellum homes, charming bed-and-breakfasts, and boutique hotels steeped in local lore can rival five-star hotels in their uniqueness.
  • Personalized Services: Reflecting Euromonitor’s call for “personalization” and McKinsey’s emphasis on “experience over product,” operators can offer custom itineraries, private tours, or VIP encounters with local artisans or chefs.
  • Value-Driven Luxury: Position the Travel South as a place where travelers can stretch their budgets without compromising quality, from spa indulgences to curated cultural excursions.

As you craft and refine your strategies for the year ahead, keep these significant industry signals in mind: travelers will continue to gravitate toward meaningful connections and the stories they get to create and cherish. Interestingly, only 3 out of 10 international travelers to the Travel South say a destination’s political climate – if misaligned with their personal views – is a deterrent when planning for a leisure trip according to Brand USA. While the complex political landscapes could introduce risks and uncertainties for travel as an export economy, the lure of leisure travel and the appeal of cultural discovery often transcend politics. 

Click below for the audio version:

In part 2 of this series, we’ll have a few more trends to unpack. Click here for part 2.

References:

  •  Tourism Economics. International States Travel. August 2024.
  •  Future Partners. Travel South USA Research. April 2024.
  • Brand USA. Consumer Insights. August 2024. 
  • MMGY. Global Compass. 2025.
  • Skift. Megatrends.2025. 
  • TripAdvisor. Trendcast. 2025. 
  • McKinsey. Future of Travel & Hospitality. 2024.
  • Euromonitor. Consumer Trends Report. 2025.
  • Expedia. Unpack 25 The Trends in Travel. 2025. 
  • Deloitte. Travel Industry Outlook. 2025.