Cost has become the number one factor driving holiday choices. It is pushing travelers to look beyond traditional European hotspots. Travelers opt for more affordable destinations.

The rising cost of living is stretching family budgets. Despite this challenge, a determined 75 per cent are still prioritizing taking a holiday. This is according to the WTM Global Travel Report 2025.

Forty per cent say costs are ‘the biggest barrier’. Savvy travelers are focused on ‘seeking ways to reduce and enhance their travel spend’. They want to get the most for their money.

This has transformed the holiday hunt. It drives travelers to snap up discounts and all-inclusive packages. They are discovering a new wave of affordable destinations.

The report compiled by Tourism Economics revealed that Albania was among the destinations with exceptionally strong growth. It offers beach holidays at a fraction of the cost. It offers beach holidays at a fraction of the cost.

Serbia and Romania have also seen an increase in visitors for those looking to make cost-conscious choices.

This trend extends to Turkey, which continues to appeal to travelers, keen on saving on luxury.

Beyond Europe, in Central America, El Salvador is attracting more visitors due to its lower cost of travel. 

Meanwhile, in Southeast Asia, Vietnam is set to see a continued increase in tourism, alongside Thailand and the Philippines.

The report also highlights the Middle East as ‘the fastest-growing region in the world.’ Oman and Qatar are seeing visitor numbers soar.

Another popular trend from the report shows travelers seeking less crowded destinations to avoid overtourism. Demand is rising for authentic local experiences. This includes culinary tours, historical sites, and outdoor adventures.

Many are changing their travel plans. They now avoid the peak summer season. This change helps them avoid the extreme heat in parts of southern Europe. 

In Spain, resorts are looking to reduce overcrowding. They aim to extend their seasons. Travelers are also adjusting their habits to avoid hot weather and high prices.

Another driver is wanting to attend sporting events or live music experiences. Countries are now ‘actively encouraging major touring artists to host events in their cities’. This is mentioned in the report after the success of shows from Coldplay, Oasis, and Taylor Swift.

Tourism Economics managing director, Dave Goodger, spoke at World Travel Market in London. He said: ‘European travelers are looking to save money. This is true whether they go long-haul or short-haul.

‘From all surveys, we see that cost comes out on top. We see that expense is the largest deterrent and overcrowding is also a concern. 

‘Travelers are prioritizing value for money and looking beyond the usual hotspots.

‘Albania, Serbia and Romania are newer, more affordable destinations that are seeing strong growth.’

While holidaymakers face financial struggles, the outlook for the travel industry itself is robust. 

It is on track to grow faster than the global economy over the next decade.