Kensington – the leader in private guided luxury travel – has released its Mid-Year Trend Report, Navigating Uncertainty in Affluent Travel, following up on its inaugural Travel Trends Report published in December. Informed by booking patterns, proprietary data, and an updated Affluent Traveler Survey conducted in partnership with Dig Insights (June 2025), the report sheds light on how high-net-worth (HNW) travelers are responding to a year shaped by economic, political, and global uncertainties. 

The December report outlined several broad themes that continue to influence 2025: a rising interest in lesser-known destinations, a marked shift in seasonal travel patterns, and a deepening desire for seamless, exclusive journeys. Based on both internal data and two external surveys with Opinium Research and Dig Insights, that initial report underscored how luxury travel remains resilient and experience-driven. It documented growth in high-value trips, a resurgence in solo travel, and increasing investment in privacy-forward experiences like private villas and yacht charters. Those trends have proven foundational—and the mid-year data now reveals how traveler’s motivations are evolving in real time. 

“We’re in a moment where global unpredictability is testing assumptions across the industry,” said Matt Cammaert, SVP of Marketing and Outside Sales. “And yet, the data tells a story of travelers who are adapting, not retreating. These shifts aren’t just reactive; they’re purposeful. Whether it’s staying closer to home or seeking out deeper experiences abroad, today’s traveler is making intentional choices.” 

Trend #1: Affluent Americans Are Traveling Closer to Home 

While about half of affluent travelers reported no major change in their travel habits, Kensington’s internal data shows a 60% year-over-year increase in U.S.-based trips and a rise in shorter-duration itineraries, which now make up over 9% of 2025 sales. The motivations range from convenience and scheduling flexibility to a cautious mindset shaped by economic or political concerns. Many travelers cited shorter flights, ease of planning, and the ability to decide closer to departure as key factors. 

“It’s not just about proximity, but about control,” added Cammaert. “The domestic segment is growing because it meets today’s traveler where they are. They want high-end, high-touch experiences, but they also want to reduce friction.” 

In response, Kensington is expanding elevated U.S.-based experiences, especially in National Parks, Alaska, and Hawaii.  The company has also launched Kensington Concierge, a new division designed to assist travelers planning short domestic or international city breaks independently. The service offers flexible support, whether clients need help booking just a flight or hotel, or want assistance with extras like restaurant reservations. 

Trend #2: Demand for Once-in-a-Lifetime Travel Remains Strong 

Luxury travelers continue to prioritize unforgettable, one-of-a-kind experiences despite external uncertainties. Bookings in the ultra-luxe segment, defined as $2,000 to $3,000+ per person per day, have grown significantly. Interest in private yachts, villas, and VIP access to exclusive events remains robust, with 56% of surveyed travelers saying they plan to spend more on leisure travel this year than last and 36% said they are spending more this year for VIP-style treatment. 

Kensington’s sister company, Kensington Yachts, and its Kensington Villas division are experiencing sustained growth across their respective categories. Yacht charter sales have increased by 94% year-over-year, while bookings in the first-tier ultra-luxe segment—defined as $2,000 to $3,000 per person per day—are up 47%. Notably, demand at the highest tier, with bookings exceeding $3,000 per person per day, has surged by 63.8%, underscoring a continued appetite for exclusive, high-touch travel experiences. 

As a result, Kensington is expanding both its Villas and Yachts division and will soon launch Kensington Expeditions — custom experiences combining land-based exploration with private vessel charters, guided by leading scientists, historians, or adventurers. 

“The needs of high-net-worth travelers aren’t typically impacted by the short-term economic changes that affect other parts of the market,” said Edita Sgovio, VP Kensington Yachts & Expeditions. “Their expectations are high, and they want experiences they can tell stories about – even boast about. They want to make lasting memories and will be loyal to travel brands that deliver on those high expectations.”  

Trend #3: Africa’s Appeal Is Evolving 

Safari remains a core driver of demand in Africa with bookings up over 50% in early 2025 but interest is widening. Travelers are seeking out historic cities, local culture, and non-traditional wildlife experiences such as gorilla trekking in Uganda. Kensington reports significant booking increases in countries such as Botswana, Tanzania, and Rwanda, signaling broader interest across the continent. 

“Travelers are becoming increasingly interested in immersive experiences that allow them to step outside the 4×4 safari vehicles and engage and interact with the people and places they’re visiting. Whether it’s on foot, in a motorboat or canoe, or in a helicopter there are so many different experiences to enjoy from country to country.” 

To meet this growing demand, Kensington has expanded its African product with itineraries such as “Rare Encounters: Primates of Madagascar & Uganda” and “Legends of the Wild: Uganda Luxury Safari.” From Ghana to Botswana, Zimbabwe to Senegal, Morocco to Madagascar, Kensington is investing in opportunities to offer clients new ways to explore the incredible breadth of African cultures.   

To view the full report, click here.  For more information on Kensington, visit www.kensingtontours.com.  

Eurostat data shows that package holiday prices in the European Union rose in June 2025 compared with the previous year, with variations between countries and markets. While the EU’s overall inflation rate stood at around 2.5% annually, package holidays registered a slightly higher increase of 2.8% for consumers. International holiday packages, which take travelers outside their home countries, saw prices climb by 2.7%.

The data also highlights significant differences between individual countries. In Germany, a key source market for Mediterranean tourism including Turkey, package holiday prices increased by 1.6%. France recorded a rise of 1%, while Italy saw a much sharper increase of 5.4%. Poland, considered a growing market for outbound travel, reported an annual rise of around 5.1% in package holiday prices.

Understanding EU Package Holiday Prices

Package holidays include a combination of travel, accommodation, meals, guides, and other services. They often come in the form of all-inclusive vacations or tours and can also cover half-day and one-day excursions or religious pilgrimages. International packages involve travel to a destination outside the traveler’s home country, while domestic packages are confined to destinations within national borders.

The overall 2.8% increase in EU package holiday prices is slightly above the general inflation rate, indicating that travel costs are rising faster than average consumer prices. These increases vary greatly by country, influenced by demand trends, seasonal patterns, and destination-specific factors.

Package Holiday Price Changes in Key Markets

Turkey Leads in Tourism Inflation

In June 2025, tourism-related inflation—covering hotel and restaurant spending—was highest in Turkey, reaching 35.6%. This figure places Turkey well above all other European destinations. Data compiled by Turizmdatabank from Eurostat shows that North Macedonia followed with a 10.6% increase.

Among Turkey’s main competitors in the tourism sector, the rate of tourism inflation was considerably lower. Spain recorded 4.2%, France 2.8%, and Italy 3.6%. The EU’s overall tourism inflation rate, combining hotel and restaurant costs, stood at around 4.1%.

Tourism Inflation Rates in Selected Countries

• Turkey: 35.6%
• North Macedonia: 10.6%
• Spain: 4.2%
• France: 2.8%
• Italy: 3.6%
• EU average: 4.1%

Why Turkey’s Prices Stand Out

For European travelers, Turkey is often considered a relatively affordable destination due to currency exchange rates. However, the data shows that in local terms, costs for accommodation and dining have risen significantly. This trend suggests that while Turkey may still appear inexpensive for visitors paying in euros or other strong currencies, domestic price increases are outpacing those in competing destinations.

The rise in tourism inflation may be linked to high demand, changes in supply conditions, and broader economic pressures. Seasonal peaks, increased operating costs for hotels and restaurants, and global market shifts can all contribute to these price trends.

Outlook for the Travel Industry

As 2025 progresses, the travel industry in Europe faces a mix of opportunities and challenges. Rising package holiday prices and tourism inflation may influence traveler decisions, potentially shifting demand toward less expensive destinations or alternative travel formats. At the same time, strong demand in many markets suggests that consumers remain willing to spend on travel experiences despite broader economic concerns.

Industry stakeholders—from tour operators to hoteliers—will be watching pricing trends closely. Balancing affordability with profitability will be key to sustaining growth, especially in competitive markets. For destinations like Turkey, managing rapid price increases while maintaining appeal to international travelers will be an important consideration moving forward.