2025 Travel Outlook: Squaremouth Predicts Traveler’s Destination and Spend Trends

Last Updated: November 6, 2024November 6, 2024 — 1 min read

ST. PETERSBURG, Fla., November 7, 2024 — From historic hurricanes, growing anti-tourism sentiments, frequent travel disruptions and ever-rising trip costs, 2024 has been a challenging year for travelers. 

Looking ahead into the new year, Squaremouth, the nation’s leading travel insurance marketplace, reveals their top 3 biggest travel predictions for 2025.

1. As Trip Costs Climb, Interest In Travel Will Continue to Decline

Travelers have seen increasing travel prices for the past 4 years running. The average international trip cost for 2025 is $9,922, up 11% from 2024, 16% from 2023 and 32% from 2022. Data indicates this trend shows no signs of stopping, and many travelers may be cutting back on travel due to these rising costs. 

2. Americans Will Opt to Head North and West 

While overall interest in international travel appears to be declining in 2025, many European destinations will continue to increase in popularity in 2025. Interest in trips to the UK has risen 16% and Italy has risen 11% over last year.

Additionally, more travelers will be heading north in 2025, with travel to Mexico down 19% and trips to Canada up nearly 10%. This shift may reflect travelers’ growing safety concerns going into 2025, with Canada having recently been named one of the safest destinations in the world for travelers. 

3. Rising Costs Will Be More Manageable For Older Generations

Bucket list travel is up despite rising travel costs, and older generations with more disposable income will be traveling more frequently in 2025. Over 80% of travelers taking trips next year will be 45 years old and over, up 11% compared to 2024. The number of travelers under 44 planning trips has decreased by 17% year over year.

Methodology: Squaremouth identified trends amongst travel insurance policy sales purchased with travel dates between 01/01/25– 12/31/25.