Saniya Zanpure

Price-sensitivity is rising across markets, despite strong travel demand. While travelers continue to prioritize travel, they are increasingly selective in how they spend. Pricing strategies must evolve to capture demand, while addressing growing expectations of value from consumers.

Global travel demand is strong overall, but growth potential varies widely by market. Travel intent does not always guarantee growth: our five-dimension scorecard maps where it does, and where it falls short.

The index fell to 97 in May, but this does not indicate that people have stopped traveling; travelers have just become more selective about where they spend their money.

Most destinations’ marketing campaigns lead with what is on offer, such as price, product, or infrastructure. But the travelers who are most likely to return want to know what is on offer to them personally. Should the focus be on marketing the destination as a product, or should marketing target the traveler?

Most destinations only report how many visitors came and how much they spent. Very few report on where the money goes or what is lost when those visitors don’t come back. With destinations being asked harder questions about tourism’s benefit to local communities, per-trip yield and arrival volumes may not be enough on their own.

Most destination budgets lean heavily toward attracting first-time visitors. But this growth model is under strain — it may be time to change the equation and ask what smarter allocation would look like.

First-timers spend more per trip. Repeat visitors spend less. But the math still favors loyalty.

As of April 2026, the index stands at 99. The East is gaining. The West is losing ground.

Repeat visitation must be actively earned, not assumed as a result of satisfaction.

The traditional destination growth model, built on attracting first-time visitors might become unsustainable with rising acquisition costs, shifting traveler behavior, and growing competition. Destinations must work on strategies to be chosen again.