Cost has become the number one factor driving holiday choices, pushing travellers to look beyond traditional European hotspots in favour of more affordable destinations.
Despite the rising cost of living stretching family budgets, a determined 75 per cent are still prioritising taking a holiday, according to the WTM Global Travel Report 2025.
With 40 per cent saying costs are ‘the biggest barrier’, savvy travellers are focused on ‘seeking ways to minimise and optimise their travel spend’ to get the most for their money.
This has transformed the holiday hunt, driving travellers to snap up discounts and all-inclusive packages as they discover a new wave of affordable destinations.
The report compiled by Tourism Economics revealed that Albania was among the destinations that had seen ‘exceptionally strong growth’, offering 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 travellers, keen on saving on luxury.
Beyond Europe, in Central America, El Salvador is attracting more visitors due to its lower cost of travel.
The report compiled by Tourism Economics revealed that Albania was among the destinations that had seen ‘exceptionally strong growth’, offering beach holidays at a fraction of the cost. Sarandë on the Albanian Riviera is pictured
The village of Ksamil, Albania, which is known for its beautiful beaches, is pictured
This trend extends to Turkey, which continues to appeal to travellers, keen on saving on luxury. Pictured: Hot air balloons at sunset in Göreme Valley, Cappadocia, Turkey
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,’ with Oman and Qatar seeing visitor numbers soar.
Another popular trend from the report shows travellers seeking less crowded destinations to avoid overtourism, with demand rising for authentic local experiences, from culinary tours and historical sites to outdoor adventures.
Many are also shifting from travelling during the peak summer season to avoid the extreme heat seen in parts of southern Europe.
In Spain, resorts are looking to reduce overcrowding and extend their seasons, as travellers also adjust their habits to avoid hot weather and high prices.
Another driver is wanting to attend sporting events or live music experiences with countries now ‘actively encouraging major touring artists to host events in their cities’, says the report, following the success of shows from Coldplay, Oasis and Taylor Swift.
Speaking at World Travel Market in London, Tourism Economics managing director, Dave Goodger, said: ‘European travellers are looking to save money 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.
In Southeast Asia, Vietnam is set to see a continued increase in tourism
Serbia and Romania have also seen an increase in visitors for those looking to make cost-conscious choices. Pictured: Belgrade on the banks of the Sava River, Serbia
‘Travellers are prioritising 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 may 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.
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