Welcome to the April 2025 IGES newsletter. This month, we examine the evolving dynamics of U.S. tourism, focusing on shifting travel behaviors and emerging opportunities for retailers.
Top Travel Trends for 2025
Shifts in International Travel Patterns
Recent policy changes and heightened security measures have led to a decline in visitors from Western Europe, with a 1% year-on-year decrease in February. Notably, travelers from Slovenia, Switzerland, and Belgium have shown the most significant reductions.
Resilience in Transatlantic Travel
Despite these challenges, some airlines report stable bookings. Lufthansa, for instance, has not observed a decline in U.S. bookings, indicating a nuanced landscape in international travel.
Economic Factors Influencing Domestic Travel
Amid economic uncertainties and declining consumer confidence, Americans are reevaluating their travel expenditures. Recent data indicates a 10% decrease in spending on air travel and a 6% reduction in hotel expenditures compared to the previous year. This trend is further evidenced by a 3.5% decline in restaurant spending, highlighting a broader pullback in discretionary spending.
Merch Magic: Display Trends That Convert
Embracing Local Artistry
With a tilt towards domestic tourism, there’s a growing appreciation for locally crafted products. Retailers can enhance store displays by showcasing regional artisans, offering products that narrate the local story and resonate with travelers seeking authentic experiences.
Tactical Implementation:
- Artisan Spotlight Events: Host on-site events where local artists demonstrate their crafts, creating an interactive shopping experience.
- Regional Product Sections: Designate areas within the store for products unique to the locale, complete with informative signage about their origins.
Customer Connection Corner
Prioritizing Traveler Well-being
In light of recent travel advisories, ensuring customers feel informed and secure is paramount. Transparent communication about safety measures and travel policies can build trust and enhance the customer experience.
Tactical Implementation:
- Information Hubs: Create dedicated sections in-store or online that provide up-to-date travel advisories and safety tips.
- Staff Training Programs: Equip staff with knowledge about current travel policies to assist customers effectively.
The Cleveland Museum of Art’s ARTLENS Gallery, Meow Wolf’s Convergence Station in Denver, and Paradox Museum Miami are great examples of this.
IGES Ideas: Product Spotlight
Homegrown Keepsakes
As domestic travel surges, products that celebrate local identity are in high demand. Consider a collection of regionally themed souvenirs—think handcrafted art, locally produced snacks, or eco-friendly apparel—that capture the essence of a place and appeal to the pride of local residents.
Attraction Action
Adapting to Changing Visitor Demographics
With shifts in international arrivals, attractions are focusing on enhancing experiences for domestic tourists. Tailoring exhibits and events to local interests can maintain engagement and attendance. A great example of this would be Disney’s “Storyliving by Disney” concept, which is expanding beyond parks, bringing themed residential communities to life, where fans can experience the magic of Disney in their everyday lives.
Sustainable Scene
Promoting Responsible Tourism
The conversation around sustainable travel is intensifying. Travelers are increasingly seeking ways to minimize their environmental impact, making it essential for businesses to adopt and promote eco-friendly practices. The BWH Hotels has launched the “Because We Care” sustainability program, introducing eco-conscious brand partnerships and encouraging individual properties to focus on localized sustainability efforts.
Stay tuned as we continue to navigate these changes together. We invite you to subscribe for more insights and strategic ideas to keep you ahead in the evolving tourism market. Subscribe to our newsletter
