What's News with Datafy: November Tourism Edition

The travel landscape continues to show strength as we head into the holiday season - just not evenly. Higher-income travelers, visiting friends and relatives (VFR) audiences, and long-haul segments are still moving with confidence, while middle-income households are becoming more selective as prices and holiday expenses rise. It’s not a slowdown; it’s a shift. Knowing where demand is holding, where it’s softening, and how travelers are making decisions is what will help you close out 2025 strong.

Here’s what’s happening across travel, consumer behavior, and the broader economy this month - and what it means for your destination.

Turning High Intent into Real Trips

Future Partners reports exceptionally high intent: 92% of American travelers are planning a leisure trip in the next year. Even with recession concerns, travel budgets remain a priority. The tension is that people want to travel, but many feel more cautious about discretionary spending. Affluent travelers remain confident, while middle-income households are weighing value more carefully.

What this means for you: Destinations that speak differently to each audience will convert more of this strong intent into visitation - and your Datafy advertising dashboard can help you identify which is which. Lead with elevated, experience-forward content for affluent travelers, and make travel feel attainable for the middle market through flexible offers, clear value, and short-lead opportunities. 

October’s Travel Shift: Strength at the Top, Softness Below

Omnitrak reported that October outperformed 2024 for the seventh straight month, supported by strong TSA volumes, international outbound travel, and steady VFR demand. The only soft spot came from lower-income households trimming discretionary leisure travel. Overall travel didn’t weaken… it shifted toward segments less sensitive to economic pressure.

What this means for you: Reaching the right audiences with the right message is more important than ever in this K-shaped economy. Prioritize the audiences still moving: higher-income travelers, VFR segments, and essential travel. At the same time, reinforce simplicity, convenience, and affordability to help cautious travelers commit. 

Navigating a 7% Decline in International Inbound

Forecasts now show a 7% decline in international inbound travel for 2025, driven largely by a sharp drop in Canadian visitation and continued overseas softness. This is a macro-level shift that individual destinations cannot solve on their own.

What this means for you: Rebalance toward regional domestic feeders, where conversion is higher and cost of acquisition is lower. Maintain international activity - but right-size it and focus on high-yield markets where you’re already seeing traction.

Luxury Hotels Continue to Outperform

Luxury and ultra-luxury hotels continue to outperform midscale segments, supported by resilient demand and strong pricing power among affluent travelers. Midscale leisure is softening as households feel more cost pressure.

What this means for you: Destinations should segment deliberately (seeing the theme yet?). High-income travelers respond to premium, experience-led storytelling, while the broader market needs value, approachability, and transparent pricing. Lean into your advertising dashboard’s capabilities to identify these separate audiences, then cater the individual messaging accordingly.  

A Divided Holiday Consumer

Retailers report steady everyday spending but weaker discretionary purchases among lower-income households, signaling increased price sensitivity. Higher-income households are still spending, but consumers overall are prioritizing value more than before.

What this means for you: Make travel feel accessible. Shorter stays, bundled packages, flexible cancellation policies, and clearly communicated value help hesitant travelers commit without feeling like they’re overspending during a high-cost season.

Reading the Labor Market Through Delayed Data

The delayed September jobs report showed moderate job growth, but rising unemployment and downward revisions suggest the labor market is cooling. ADP’s more real-time data shows similarly uneven gains and softening momentum heading into November.

What this means for you: For households that could be impacted by these market realities, expect continued value sensitivity and highlight travel that feels low-risk and worth the spend. Flexible policies, approachable price points, and clear messaging help travelers feel confident booking into early 2026.

Final Takeaway

Across every signal, the same theme emerges: demand is still there - it’s just divided. Affluent travelers continue to perform, while middle-income households are choosing more carefully. Destinations that understand these segments, tailor their messaging, and emphasize value where it matters will close out the year strong. (Have no fear: This kind of segmentation and individualized messaging is easy with the help of your Datafy team and advertising dashboard.) 

Connect with Datafy today for insights into which travelers are still moving, where demand is shifting, and where your marketing will have the greatest impact.