Why The Points Guy says travel will be more expensive in 2025, key trends across the industry
Brian Kelly highlighted six factors that will impact travel in the year ahead.
Travel website The Points Guy has analyzed the evolution of why and where Americans travel, honing in on six top trends it expects to take a front seat in 2025.
Whether it's a renewed focus on value for future flights or how climate change and overtourism concerns could affect travel, The Points Guy founder Brian Kelly and his team of experts combed through key indicators across the industry to offer a glimpse at what's on their radar for the year ahead.
Below, read more about what travelers can expect in 2025.
Travelers should expect to spend more in 2025
Kelly spoke with "Good Morning America" about the 2025 report on Wednesday, noting right off the bat that travel would be more expensive next year as demand continues to influence how travel is priced.
The Transportation Security Administration hit a new all-time record with nearly 3.1 million commercial air travelers on Sunday's post-Thanksgiving travel crush, which narrowly topped the previous single day screening record less than five months ago.
"Two days this year we saw 3 million-plus passengers," Kelly said.
For those worried that these trends might price them out completely, Kelly added, "All is not lost. Airfares are actually gonna be about flat to start the year."
However, he cautioned, "It's not airfare where people need to look at when planning that full trip cost. Lodging has gone up dramatically."
Travelers craving shared experiences in 2025
With many people traveling for splurge-worthy experiences like Coachella and Taylor Swift's Eras Tour, Kelly pointed out that's not slowing down.
"Forty-seven percent of expected travel in 2025 is related to cultural events and festivals, and people just want to have fun," he said.
According to The Points Guy, U.S. Travel Association trade group data shows the Eras Tour's impact on U.S. destinations was the equivalent of 53 Super Bowls, with visitors spending an average of $1,300 each in local economies over 53 nights in 20 different cities. Concertgoers' travel expenditures to and from Swift's concerts hit estimated $10 billion, and Southwest Airlines showed a 10% increase in bookings in markets with a tour stop.
Other major events like the solar eclipse, Carnival in Rio de Janeiro, the Oasis reunion tour, the Summer Olympics in Paris and regular-season NFL games have continued to drive demand for travel, trends The Points Guy report said will continue in 2025.
Challenges with points and miles
2025 is the year to get serious about airline loyalty, rewards and creating a clear strategy with a credit card to utilize the value from points amid rising card fees.
"One of the unfortunate trends is the airlines are doing what's called unbundling -- airfares are remaining about even, but they're starting to charge us for all the things we used to get for free," Kelly explained.
He continued, "Even though frequent flyer miles are getting a little bit less valuable to use, that's really where you get value, because airlines are now charging dynamic pricing even for checked bags, where you don't even know how much your bag will be."
Kelly encouraged travelers to consider getting an airline's co-branded credit card, because "if you fly any airline a couple times a year, just the signup bonus for getting it is usually $500 to $600."
Perks include boarding early, ability to bank miles and help you save, free bags, easier travel booking, and -- for some -- lounge access and discounts.
Plus, companies are investing in new spaces with additional perks for cardholders, like the recently debuted Capital One Landing at Ronald Reagan Washington National Airport in Washington, D.C., which offers food and drinks from renowned chef José Andrés, and Chase's newest outposts of its Sapphire Lounge by The Club, which are open in Phoenix Sky Harbor International Airport with San Diego International Airport soon to follow on Friday, Dec. 6.
Three more domestic lounges from Chase are set to open at Philadelphia International Airport in early 2025, Las Vegas' Harry Reid International Airport in mid-2025, and eventually Tom Bradley International Terminal at Los Angeles International Airport.
Three additional trends highlighted in detail within the new Points Guy report include how 2025 travel plans will be shaped by the fight against overtourism, the unrealized impact climate change has on travel decisions and renewed focus on government regulations that impact the future of the travel industry.
Read the full report on The Points Guy website.
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