Embracing Heritage, Innovation, and Connection in 2025

Click here to read part 1 of this 2 part series.

Greetings Travel South Partners,

Uncertainty continues to define 2025. Due to tariffs, layoffs, and market volatility, the travel sector is revising its projections for this year. Using the latest data, the National Travel and Tourism Office projects that the United States will welcome 77 million international travelers this year, reaching 97% of 2019 levels. As we navigate the global markets, we look inward first and focus on the trends that matter most for our macro exposures globally. Our core convictions remain the same. In addition to culinary sophistication, live tourism, and value-driven luxury – our fourth conviction is about history and heritage. 

4. History & Heritage as a Gateway to “Nano” Experiences – Highlight Immersion and Community

TripAdvisor’s Trendcast 2025 highlights “nano neighborhoods”, where travelers zoom in on a single street, community, or historical site. The South’s layered history—Civil War battlegrounds, Civil Rights landmarks, and centuries of music heritage —already provides a magnetic pull for travelers seeking more profound understanding and story-rich moments.

Opportunity Spots:

  • Micro-Tours and Museum Hops: Offer in-depth tours focusing on specific neighborhoods or streets, such as the music clubs on Beale Street in Memphis or the storytelling circles in the Carolinas’ low-country communities.
  • Cultural Immersion: Build itineraries that weave together local festivals, historic tours, gospel brunches, or literature-inspired walks. This resonates with the rising desire for authentic, story-led experiences.
  • Hands-On Learning: Promote traditional crafts or cooking workshops that reflect the region’s history—think Gullah basket weaving, Appalachian folk art, or Delta blues guitar sessions.

The Travel South experiences serve as powerful lures for international travelers. According to Future Partners, 8 out of 10 international travelers find the Travel South Region appealing as a vacation destination. While the region’s appeal remains steeped in tradition, tourism professionals are faced with keeping pace with accelerated tech changes, the increasing role of AI in travel, and broader global uncertainty, including geopolitical tensions and economic fluctuations. We’ll explore these two in the following section.

5. Evolving Role of AI – From Keywords to Intelligent Conversations

Euromonitor emphasizes trust, transparency and the responsible integration of technology – particularly AI. We are at an inflection point, especially in the world of online Search. We’ve (Consumers) moved from searching with just a few keywords for tourism information to having intelligent conversations with large language models. As a result, AI-generated answers may fully satisfy prospective travelers, potentially leading to “zero-click” web traffic, where users get the information they need without visiting a website.

Opportunity Spots:

  • Create High-Quality Content: Use storytelling and purposeful content, signaling your material is worthy of top-ranking and trustworthy.
  • Understand Travel Intent: Reflect on travelers’ changing desires, needs, pain points, and interests.
  • Diversify Distribution: Leverage partnerships, media or platforms to reach audiences and safeguard your brand visibility.

6. Keeping Human Connection Alive in the Age of Uncertainty

While AI brings new possibilities for consumers, the global markets are marked by uncertainty and fluctuating consumer sentiment at the moment. Recently, our AI analyst found a changing sentiment – especially among Canadians, with feelings of frustration and sadness influencing their travel decisions. Currency exchange is also a concern with a risk of weakening exchange rates. In light of these concerns and travel industry’s potential risks, here are ways to help international travelers:

  • Leverage Collective Strength: Despite economic uncertainties, shifting traveler sentiment, and global political challenges, commitment to collaboration remains a stabilizing force. 
  • Share Transparent Communication: Share timely updates on travel advisories and guidelines so visitors feel informed rather than angst.
  • Highlight Human Connection: In a time of uncertainty, highlight genuine hospitality and welcome to potential visitors. After all, travel transcends politics.

From the National Travel and Tourism Office’s revised forecasts to Skift’s recognition of a “collective shift toward intentional travel,” the message is clear: travelers want more meaning, less friction, and experiences worthy of their resources.  Layering its authenticity on top of a famously warm welcome is a recipe for success for Travel South destinations. 

In the meantime, mark your calendars for the highly anticipated Travel South USA Global Week in Louisville, Kentucky at the end of the month. Janette Roush of Brand USA and I will be hosting a session on travel and AI. We are looking forward to seeing y’all and engaging in insightful discussions! 

Click below for the audio version:

References:

  • The National Travel and Tourism Office. March 11, 2025
  • Tourism Economics. International States Travel. August 2024.
  •  Future Partners. Travel South USA Research. March 2025.
  • 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.