Japan’s travel trade is seeing increased sales of outbound trips this summer, with more consumers choosing to travel overseas compared to last year.

JTB Corp., the country’s largest travel agent, expects some 2.4 million people to travel abroad for at least one night between July 15 and August 31, equating to an increase of 21 per cent over the same period last year. Average traveller spend is estimated at 289,000 yen (US$1,961), six per cent more than in summer 2024.

HIS Group, meanwhile, reports an 8.2 per cent rise in bookings year-on-year for overseas trips between July 19 and August 31, with an average cost increase per booking of seven per cent.

The trend is being driven by increased flight capacity, a stronger yen and larger-than-usual summer bonuses. Public and private sector campaigns to encourage overseas travel – such as gift certificates, discounted fares and subsidies for new passports – are also supporting outbound sales, according to agents.

Among this year’s summer destinations, Europe and South Korea are the most popular with JTB customers, each accounting for 17 per cent of bookings, followed by Taiwan and Southeast Asia at 14 per cent each. The company has also recorded a rise in bookings for Hawaii compared to the same period last year.

Similarly, HIS said Seoul, Taipei and Honolulu remain top choices for its clients this summer. However, strong growth has also been seen in emerging destinations such as Cairo, Shanghai and Barcelona.

The global tourism industry is undergoing a seismic shift, driven by a confluence of technological innovation, environmental consciousness, and a deepening appetite for culturally rich experiences. At the forefront of this transformation is Trip.com Group, whose 2025 Tourism Innovation Awards have spotlighted projects that redefine travel as a force for sustainability, creativity, and cultural preservation. These awards, which recognize 10 groundbreaking initiatives across Asia, the Middle East, and Europe, are not merely accolades—they are blueprints for the future of travel and a signal to investors of the sectors poised for exponential growth.

The Triple Pillars of Modern Tourism: Immersion, Sustainability, and Culture

The 2025 Tourism Innovation Awards underscore three dominant trends reshaping the industry: immersive technology, sustainable infrastructure, and cultural authenticity. Projects like Saudi Arabia’s Shebara Resort, with its floating sphere villas powered by solar energy and reversible construction, exemplify how luxury and environmental stewardship can coexist. Similarly, teamLab Borderless in Tokyo reimagines art as an interactive, boundary-defying experience, while London’s Harry Potter-themed King’s Cross Station merges nostalgia with cutting-edge storytelling. These projects are not isolated experiments but scalable models that align with a $11.39 trillion projected global sustainable tourism market by 2034.

Investors should note that these trends are not speculative. The awards’ evaluation framework—prioritizing innovation, sustainability, and scalability—has already demonstrated tangible impact. For instance, the top 10 winners saw an average 51% increase in destination orders and a 42% rise in search volume within three months of launch. This data underscores the growing consumer demand for travel that is both transformative and responsible.

Technology as the Catalyst: AI, VR/AR, and Hyper-Personalization

Trip.com Group’s strategic investments in AI-driven personalization are a linchpin of its innovation strategy. Tools like TripGenie and Trip.Best leverage artificial intelligence to curate real-time itineraries, while VR/AR platforms enable virtual previews of destinations, reducing the environmental footprint of exploratory travel. These technologies are not just enhancing user experience—they are redefining the economics of travel.

Consider the financial metrics: Trip.com’s AI-powered tools drove a 200% surge in usage in 2024, with 58% of travelers already relying on AI for recommendations. The company’s R&D spending increased by 13% year-over-year in Q1 2025, reflecting a commitment to scalable technologies that reduce per-user acquisition costs. For investors, this signals a shift toward a travel ecosystem where data-driven personalization and immersive tech are not optional but essential.

Sustainable Tourism: From Niche to Mainstream

The awards also highlight a critical pivot toward sustainability. Shebara Resort’s energy recycling systems and DesertxAlUla’s art-nature fusion are emblematic of a broader industry trend: travelers now demand that their experiences align with their values. Trip.com’s carbon transparency tools, which quantify emissions across flights and car rentals, have already driven 100 million sustainable travel orders in 2024—a 34% year-over-year increase.

This shift is not just ethical; it is economic. The Asia-Pacific sustainable tourism market, growing at a 15% CAGR, is projected to reach $42 billion by 2030. Trip.com’s Country Retreat Programme, which expanded to 34 destinations in 2025, has created 40,000 indirect jobs and boosted local incomes by $5,500 per capita in regions like Bali and Costa Rica. Such initiatives align with the UN’s Sustainable Development Goals while generating long-term value for stakeholders.

Cultural Immersion: The New Travel Checklist

Cultural heritage is another cornerstone of the 2025 awards. Projects like Egypt’s Grand Egyptian Museum, with its 100,000 artifacts and holographic technology, and Japan’s Nintendo Museum, which blends gaming history with interactive exhibits, cater to a generation of travelers seeking authenticity. These experiences are not passive—they are participatory, fostering deeper connections between visitors and destinations.

For investors, the cultural tourism sector offers a dual opportunity: preserving heritage while monetizing it. The Grand Egyptian Museum, for example, has become a major attraction within months of opening, demonstrating the commercial viability of culturally rich projects. As 70% of Gen Z and Millennials prioritize unique, unexplored experiences, the demand for such offerings will only intensify.

Investment Opportunities: Where to Allocate Capital

The convergence of these trends creates a roadmap for investors. Key areas to consider include:
1. AI-Driven Travel Platforms: Companies developing hyper-personalized itineraries and real-time language tools.
2. Sustainable Infrastructure: Firms specializing in eco-friendly construction, renewable energy integration, and carbon offset programs.
3. Immersive Tech Providers: Developers of VR/AR solutions for virtual travel previews and interactive cultural experiences.
4. Cultural Heritage Projects: Partnerships with destinations that blend historical preservation with modern innovation.

Trip.com Group’s $100 million Tourism Innovation Fund and its 31% EBITDA margin in Q1 2025 position it as a prime beneficiary of these trends. However, investors should also look beyond the platform to niche players in AI, green energy, and cultural tourism. For example, the rise of “last-chance tourism” to endangered destinations could drive demand for conservation-focused travel startups.

Conclusion: The Future of Travel is Here

Trip.com Group’s 2025 Tourism Innovation Awards are more than a celebration—they are a harbinger of the industry’s next phase. As immersive tech, sustainability, and cultural authenticity converge, the travel sector is evolving from a commodity-driven model to a value-driven one. For investors, this means opportunities in sectors that align with both planetary and consumer priorities. The winners of these awards are not just redefining destinations; they are redefining the very purpose of travel.

The time to act is now. With the Asia-Pacific sustainable tourism market growing at 15% annually and AI adoption in travel set to accelerate, the next decade will belong to those who invest in the future of experiential travel.