Beyond Affordability: Harnessing Premium for Profitability in the Travel Market

Discover how premiumisation offers sustainable growth for travel businesses amidst rising consumer expectations. The "Beyond Affordability" report reveals travel market insights, trends, and strategies to enhance profitability with value-led approaches, using industry data and case studies.


Dublin, July 21, 2025 (GLOBE NEWSWIRE) -- The "Beyond Affordability: How Premium Drives Value in Travel" report has been added to ResearchAndMarkets.com's offering.

In a landscape of rising costs and greater consumer expectations, this report explores why discounting is not a sustainable strategy for travel businesses. Instead, it presents premiumisation as a scalable, value-led approach to meet the demands of cost-conscious yet experience-driven travellers.

Drawing on travel industry data and case studies from airlines, hotels and intermediaries, it outlines how businesses can deliver relevance, emotional impact and profitability beyond affordability.

Key Findings

The challenge for the travel industry is clear

Even as global booking sales are expected to finally rebound to their pre-pandemic levels, travel businesses are facing the dual challenge of rising operational costs and margin pressures. Discounting may drive volume in the short term but, as a strategy, it is proving unsustainable, eroding profitability without necessarily building long-term loyalty.

Travellers want more for less, and will pay for the right thing

Consumers are more selective with their spending, but are not frugal. Instead, they are willing to trade up for travel features that feel meaningful, unique and worthwhile - whether it is ease, emotional reward or alignment with their values.

Premium in travel is being redefined

Premium is no longer about price, space or exclusivity. Today's travellers define premium through emotional relevance, personal fit and time well spent. Winning brands are delivering affordable, elevated and meaningful experiences, not necessarily expensive.

Traveller insight is a strategic advantage

Understanding traveller types and their mindsets - such as the Leisure Seeker, Adventure Lover or Wellness Worshipper - is key to targeting spend, designing offers and driving loyalty. Businesses that personalise based on intent, not just demographics, unlock stronger margins from the mid-market.

Predictive personalisation will define the next generation of travel

The shift from reactive service to anticipatory engagement is already underway. Brands like JetBlue and Airbnb are showing how AI and behavioural data can deliver timely, tailored experiences that boost satisfaction, operational efficiency and long-term loyalty.

The Beyond Affordability: How Premium Drives Value in Travel global briefing offers an insight into to the size and shape of the Travel market, highlights buzz topics, emerging geographies, categories and trends as well as pressing industry issues. It identifies the leading companies and brands, offers strategic analysis of key factors influencing the market from innovation, pricing, channel distribution to economic/lifestyle influences. Forecasts illustrate how the market is set to change and outlines the criteria for success.

Product coverage: Booking, In-Destination Spending, Lodging (Destination), Tourism Flows, Travel Modes.

Data coverage: Market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?

  • Get a detailed picture of the Travel market;
  • Pinpoint growth sectors and identify factors driving change;
  • Understand the competitive environment, the market's major players and leading brands;
  • Use five-year forecasts to assess how the market is predicted to develop.

Company Coverage:

  • Sonder
  • Breeze Airways
  • CitizenM
  • Hilton
  • Airbnb
  • JetBlue Airways

Key Topics Covered:

Introduction

  • Despite income lag, consumers want elevated experiences that justify their spend
  • Amid high costs and rising expectations, premium is a necessity

Premium means meaningful, not pricey

  • Premium is about making consumers feel they are getting something personally relevant
  • Sonder: Offering premium stays through design and technology
  • Breeze Airways offers tiered bundles that let travellers pay more for what matters to them
  • The meaning of "premium" varies across different travel sectors

Deep insights into traveller types are a competitive edge

  • Understanding what matters to different traveller types is critical for business success
  • Varying preferences by traveller types
  • CitizenM: Elevating perceived value through brand personality
  • Hilton x Autocamp: Diversifying demand through lifestyle adjacency
  • Unlock revenue growth with granular insights into different traveller types

Personalisation at scale

  • If it feels personal, it feels premium
  • Airbnb pivots to a holistic ecosystem focused on personalisation and affordability
  • JetBlue Airways: Blueprint for predictive travel personalisation
  • The most powerful form of premium is personal relevance

Conclusion

  • Pivot to premium for value creation in travel: How to win
  • Evolution of pivot to premium in travel
  • Questions we are asking

For more information about this report visit https://www.researchandmarkets.com/r/hzs8jg

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