Navigating the new travel landscape: Key trends for group travel in 2025 and beyond

A recent study by the Mastercard Economics Institute has found that Americans are increasingly traveling further and more frequently, including to international destinations. This study, titled “Travel Trends 2024,” analyzed spending data from millions of Mastercard users and merchants to provide a detailed look at current travel behaviors. Outlined below are five key insights from the study that could impact group travel planning in 2025 and beyond, according to the Group Travel Leader:

1. Surge in International Travel

The study notes a significant uptick in outbound international travel. As of March 2024, travel from the U.S. to international destinations (excluding Canada and Mexico) has increased by 20% compared to pre-pandemic levels in 2019. This trend is in line with a recent Conference Board report indicating that nearly 20% of Americans plan to travel abroad in the coming year, a noticeable jump from around 10% in 2019. Group travel organizers may want to consider adding more international trips to their offerings.

2. Rising Popularity of Unconventional Destinations

While traditional favorites like Western Europe and the Caribbean remain popular, there is a growing interest in off-the-beaten-path destinations. Data from Mastercard shows that Japan is now the fastest-growing international tourism hotspot. Other up-and-coming destinations include Romania, Malaysia, and South Korea. These emerging locations could appeal to your group travelers.

3. Increased Spending on Experiences

Travelers are now dedicating a larger portion of their budgets to experiences rather than just transportation and accommodation. In 2023, Americans allocated 13% of their travel budget to activities like attraction tickets, guided tours, and nightlife—marking the highest percentage on record. Tour operators may want to focus more on providing enriching experiences rather than shopping excursions.

4. Longer Average Trips

The Mastercard report also shows that vacations are getting longer. Globally, the average trip length increased from 4.5 days before February 2020 to 5.5 days before March 2024. In North America, the average trip length rose from 4.7 days to 5 days. This suggests that extending group trips by an extra day could align with current travel preferences.

5. Popularity of Affordable Destinations

Despite the overall increase in trip length, destinations with minor hotel price hikes have experienced the most growth in average trip duration. The study indicates that locations with minimal increases in hotel rates saw a 2.1 day average trip length increase, whereas those with substantial price hikes only saw a 0.7 day increase. When organizing trips, prioritizing affordability could help extend stays without significantly raising costs.