Decoding the 2025 traveler

Why reviews, flexibility, and personalization now matter more than price or loyalty as Gen Z, AI, and shifting booking behaviors

The travel and hospitality industry—forecast to reach nearly $956 billion in 2025—is undergoing a digital-first transformation. With online bookings expected to account for 75% of all revenue by 2029, travelers are leaning heavily on search engines, OTAs, apps, and AI tools to plan their journeys. But while convenience drives digital adoption, travelers still wrestle with uncertainty: Will the hotel match the photos? What if plans change? How do I know this is the best deal? This whitepaper explores consumer behavior, booking triggers, and retention drivers to help travel brands cut through the noise, optimize experiences, and capture loyalty in an increasingly competitive online market.

Key takeaways

• Search engines dominate discovery: 54% of travelers start their booking journey on Google or Bing, while OTAs remain a major force. Social media is rising fast among Gen Z.
• Personalization is expected, but unevenly valued: Most travelers want brands to remember preferences (room type, seat class), yet Baby Boomers are more skeptical. The U.S. shows the strongest appetite for personalization.
• Reviews and flexibility are king: High-quality reviews and clear cancellation policies rank as the top decision drivers, far outweighing loyalty points or brand recognition.
• Location trumps price: Proximity to destinations is the #1 factor influencing bookings, with amenities and discounts following behind.
• Cart abandonment is common: The leading reasons are “not ready to buy” (41%) and limited payment options (33%). Regional and generational differences highlight the need for flexible checkout and payment methods.
• AI adoption is generationally split: Nearly half of Gen Z finds AI chatbots and tools helpful, while a third of Baby Boomers reject them outright. Clear communication and hybrid human support remain critical.
• Loyalty programs underperform: They have little influence on first-time bookings but can help with repeat guests if paired with personalization and real-time perks.

Download the full report at PhocusWire