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TGM Global Travel Insights 2025
Key Insights from TGM Global Travel Insights 2025

Travel Accommodation Trends 2025: Where the World Stays

June 06, 2025
(Updated June 19, 2026)
TGM Global Travel Insights 2025 reveals how lodging preferences are shifting across budget, deluxe, and premium segments worldwide. In 2025, this matters because it shows hospitality brands exactly where to focus as travelers segment more sharply by age and region.

Travel Accommodation Trends 2025

Written by
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Nhi Ho

A marketing professional working with consumer insights and market trends to create content that brings clarity to complex behaviors and evolving market dynamics.

As the global travel landscape continues to evolve, where people choose to stay is becoming a clearer reflection of how they travel, what they value, and how they allocate their budgets. TGM Global Travel Insights 2025 reveals shifting lodging preferences shaped by age, region, and cultural context. From aspirational comfort to price-sensitive practicality, these preferences offer important signals for hospitality marketers and hotel chains as they navigate a more segmented market.

Key Takeaways

  • Budget accommodations continue to be the most popular choice globally, preferred by 2 in 5 travelers.
  • Deluxe hotels balance comfort and affordability, attracting nearly 3/10 travelers worldwide.
  • Premium stays remain a smaller but valuable segment, especially strong in Saudi Arabia, Singapore, and the UK.
  • Younger and older travelers are more likely to choose budget-friendly lodging for cost-saving and flexibility.
  • Home rentals and villa-style stays are growing in markets like Indonesia and among older travelers in LATAM.
  • In 2025, hospitality brands will need more personalized strategies across budget, deluxe, premium, and long-stay travel segments.

Premium Stays (4 or 5 Stars Only): A Selective Yet Strategic Segment

According to TGM Global Travel Insights 2025, premium lodging remains a niche preference in most markets, representing 18% of travelers across regions (N=21,000). While it doesn’t dominate the market, this segment carries strategic weight, often associated with high expectations, longer stays, or higher-value spending.
The Middle East stands out, with premium accommodations attracting 24% of travelers overall and peaking at 33% in Saudi Arabia, where 38% of 25–34-year-olds opt for this category (TGM Global Travel Insights 2025, N=21,000).

The same TGM survey reveals that Singapore also shows strong demand, with 21% of travelers choosing premium — the highest in APAC.

In Europe, the UK leads the premium category at 23% (TGM Global Travel Insights 2025, N=21,000), driven largely by travelers aged 35–54. These regional highlights point to high-intent audiences with a clear appetite for upgraded experiences, elevated service, and brand recognition, making premium an attractive space for tailored positioning. This also reflects the behavior of certain travel personas who prioritize refinement, comfort, and exclusivity as part of their broader travel mindset.

Accommodation Trends to Watch in 2025: Premium Stays (4 or 5 Stars Only)

Deluxe Stays (3 or 4 Stars): The Global Comfort Zone

Accommodation Trends to Watch in 2025: Deluxe Stays (3 or 4 Stars)
Deluxe accommodations strike a balance between affordability and quality, making them a popular choice across multiple markets and age groups. The same TGM survey shows this tier attracts 29% of global travelers, offering broad appeal.
TGM data reveals the UK (40%) and Singapore (41%) report the highest preference for deluxe stays in their respective regions, signaling strong demand for quality and consistency without the premium price tag. In Saudi Arabia, 33% of travelers also favor deluxe options, with the preference climbing to 45% among those aged 55+.

Deluxe stands out as the segment where experience, familiarity, and perceived value intersect. For marketers, it offers a rich space to experiment with loyalty benefits, upgrade packages, and service personalization.

Budget-Friendly Options: Still the Foundation of Leisure Travel

Affordability continues to drive the highest volume of leisure travel, particularly among younger and older demographics. With 40% of travelers selecting budget options, this segment remains essential across global markets.
As highlighted in TGM Global Travel Insights 2025, Japan leads globally with a 67% preference for budget lodging, peaking at 75% among travelers aged 45–54. Similarly, Poland reports a 50% preference, with 58% of travelers aged 55+ opting for budget options. The US stands out: 39% overall prefer budget lodging, rising sharply to 44% among youngsters (18-24).

This segment is driven by clarity, consistency, and trust in value. While margins are tighter, the scale and loyalty potential are considerable. Hospitality brands competing in this space must prioritize convenience, transparent pricing, and reliable service.

Accommodation Trends to Watch in 2025: Budget-Friendly Options
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Villa, Condo, or Home Rentals: Niche, but Growing in Specific Markets

Though still a smaller slice of the market, alternative lodging formats are gaining traction in specific countries and traveler segments. Preferences for villa, condo, or home-style stays typically at 6% but spikes in select markets suggest notable growth potential.
Accommodation Trends to Watch in 2025: Villa, Condo, or Home Rentals
As mentioned in TGM Global Travel Insights 2025, Indonesia leads APAC with 20% of travelers preferring home-style stays. This is a sign of increasing demand for private, flexible, and family-friendly lodging. In LATAM, older travelers (55+) show heightened interest, with 24% choosing this type of accommodation, well above the regional average. This trend aligns with longer stays, multigenerational travel, and the search for more spacious, home-like environments.

While not yet mainstream, this format offers strong differentiation potential, especially for brands targeting families, digital nomads, or retired travelers. Serviced apartments, hybrid models, or extended-stay experiences could bridge the gap between hospitality and independence.

Takeaways for Hotel Brands and Hospitality Marketers

Hospitality strategies should prioritize adaptability, segmentation, and value alignment. Premium offerings require precise targeting and curated service to resonate in markets with strong demand for status-driven travel. In contrast, deluxe accommodations present scalable opportunities and should focus on flexible upgrades and consistent quality.

Budget travel remains vital but competitive. Operators must maintain price clarity while elevating guest experience to meet rising expectations. Meanwhile, villa and home-style formats, though niche, represent high-growth potential in multigenerational and long-stay travel. Success in 2025 will come from understanding who each offering is for, and designing around their expectations, not just their price point.

Methodology

The TGM Global Travel Insights 2025 study is based on a large-scale quantitative survey conducted across 21 countries, targeting a representative sample of adults aged 18 to 55+. Designed to uncover global travel behavior trends and insights for 2025, the survey explores popular destinations, shifting booking habits, digital discovery channels, and experience preferences across key traveler segments.
  • Survey Methodology: online interviews (CAWI – Computer-Assisted Web Interviewing)
  • Sample Size: 21,000 participants
  • Age Groups: 18–24, 25–34, 35–44, 45–54, 55+
  • Country Coverage: Australia, Brazil, Chile, China, Egypt, France, Germany, India, Indonesia, Japan, Jordan, Netherlands, Poland, Qatar, Saudi Arabia, Singapore, South Africa, Thailand, UAE, UK, USA.
  • Data Weighting: Results have been weighted to reflect regional demographics for accurate market representation.
For an in-depth look at travel trends in specific markets, purchase the country report to uncover local behaviors and opportunities.
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