Travel Predictions 2025: The Future of Travel and Customer Experience

Key Takeaways:

1. Customer expectations are redefining travel business offerings
2. Integration, personalization and flexibility are key
3. AI and augmented/virtual reality will drive future changes
4. Differentiation through tech is vital for market share

Travel Predictions 2025: The Future of Travel and Customer Experience

The travel industry has been fundamentally transformed in recent years - from new technologies enabling mobile booking and AI-powered personalization, to the disruption of the COVID-19 pandemic changing the game regarding remote work and business travel.

But one thing that hasn’t changed is the importance of customer experience in attracting and retaining market share in a highly competitive sector. Mastercard research of travel industry leaders has found that 56% feel customer expectations for digital experiences are having the biggest impact on their strategic planning.

So what does this mean for 2025 and beyond? This blog explores some of the biggest trends we think will shape customer experience and travel in the year ahead.

Where is Customer Experience in Travel Currently?

Just like any other sector, technology is redefining what customers want and expect from their travel experiences. 

More and more demand AR-enhanced apps with real-time information to guide their journeys; IoT-supported apps that help personalize and optimize hotel stays - before, during and after; and more efficient, secure and transparent means of booking, payment and travel through contactless technologies, biometrics and the blockchain. 

The integration of innovative technologies like artificial intelligence, the Internet of Things, and augmented and virtual reality have major parts to play in satisfying these demands. But at the same time, there are many other challenges and expectations beyond technology that have to be addressed, including:

However, amid these challenges, there is opportunity for travel organizations that can stand out from the crowd and rise to the customer experience challenge. In particular, the growth of niche travel segments like sustainable travel, wellness tourism and digital nomads are prime for differentiation through personalization and customer experience.

Key Travel Predictions for 2025

1. Hyper-Personalized Travel Experiences

Hotels and airlines that have struggled to personalize experiences have faced real challenges through decreased loyalty and an inability to scale. This is making tailoring journeys to individual preferences more important than ever before.

AI and big data can be utilized to curate personalized itineraries, based on individual traveler preferences, previous behaviors, contextual data and feedback. This is the type of innovation that Ciklum has been able to embed into many travel applications for personalized planning, thanks to our Experience Engineering-driven approach to AI and customer experience.

2. Rise of Contactless and Digital Services

More and more parts of the travel experience are now being embedded into apps and contactless technology. Being able to check in, authenticate passports, generate boarding passes and get personalized service recommendations are making travel experiences smoother and less stressful. In turn, this boosts the efficiency of travel operations by reducing queues at pinch points like check-in desks and boarding gates.

Being able to make contactless payments is also becoming increasingly important to travelers, especially younger ones within Generation Z. This is where secure and user-friendly digital solutions come into play, including integrated checkout experiences embedded into buying journeys.

3. Sustainable and Eco-Friendly Travel 

In the United States, almost three-quarters of travelers have said that they want to travel more sustainably in the coming year. This means that travel and accommodation providers who can create eco-friendly offerings will be best-placed to gain and retain market share in the long term. 

Possibilities here can range from accommodation and transportation that has achieved sustainable certification, to being able to filter different choices according to their sustainability credentials. This is something that Ciklum works hard to support with all our travel partners, by integrating environmental stewardship, compliance and awareness into all of our operations.

4. Integration of Augmented Reality (AR) and Virtual Reality (VR)

AR and VR are allowing customers to tour potential destinations and accommodation virtually, so that they can make more informed booking decisions with confidence. These tours increasingly include a wider range of media, including images, video, music, written text, voice guides and visual floor plans.

At tourist sites themselves, AR and VR are enabling more immersive experiences, adding further information for visitors and a greater level of interactivity. Ciklum’s expertise in edge technologies helps here, whether it’s directing users to nearby attractions or bringing a visual experience to life.

5. Expansion of Remote Work and 'Workcations'

The global market for blended travel (where trips are a combination of business and leisure) will be worth more than $730 billion by 2032. The rise of remote work post-pandemic, and the increase in the number of digital nomads who can work anywhere with an internet connection, are fueling this emerging opportunity.

These travelers will be looking for high-speed internet connectivity, and easy access to comfortable workspaces, including co-working spaces as appropriate. Ciklum’s travel technology innovations are helping underpin this. By providing robust technological infrastructure, Ciklum's solutions are enabling seamless connectivity for remote work during travel by providing technology infrastructure, cloud services, and digital transformation support that help professionals maintain productivity across different geographical locations.

6. Enhanced Health and Safety Protocols

The use of digital health certificates as part of the travel industry’s reopening post-COVID highlighted the possibilities of integrating health status into travel apps. While COVID vaccination status is no longer an issue from a travel perspective, the same principle can be applied for countries where other vaccinations are needed, such as against malaria.

Through 2025 and beyond, travelers will increasingly expect health and wellness to be part and parcel of the travel apps they use, including real-time health tracking, destination-specific medical requirements, and streamlined visa and entry process. This will be especially useful for regular business travelers who visit many different countries, and who may also benefit from predictive health risk assessments that can identify and mitigate any potential health challenges in advance.

7. Growth of Experiential and Adventure Travel 

More people want to get off the beaten track, and explore different locations and activities. CNBC has reported that 63% of travelers want to visit an off-the-beaten-track place on their next trip, while 36% want to gain deeper cultural experiences around local life and traditions in the places they visit.

AI-powered travel platforms will make this easier for travelers than ever before in 2025, through hyper-personalization that matches individuals to local experiences that meet their preferences and travel goals. Augmented reality and real-time translation will also help break down language and cultural barriers, so that ambitious travelers can explore the world around them with ease, wherever they go.

In Summary: The Future of Customer Experience in Travel

Successful platforms will combine these three strands to connect travelers with authentic experiences. This will require industry-specific expertise in data, AI and software development, which is where partners like Ciklum can help.

Ciklum can play a pivotal role in helping travel businesses like yours drive innovation and enhance customer experiences. Get in touch with our team today and find out how a collaboration with Ciklum can help you adapt and thrive in an ever-evolving landscape.