Read time 2 mins
Author Katie 🧩
The travel and leisure industry never stands still. From shifting consumer behaviours to new technologies and sustainability initiatives, brands operating in this space must stay ahead of the curve.
Whether you’re an airline, hotel, or experience provider, understanding the latest industry changes is key to staying competitive – and maximising revenue opportunities.
Let’s take a look at the biggest changes shaping the travel and leisure sector right now.
A global cost-of-living crisis is having a direct impact on how people travel. With rising interest rates and inflation squeezing disposable income, many consumers are opting for staycations instead of international trips. Airlines and hotels have had to adapt, offering flexible booking options and budget-friendly deals to attract cost-conscious travellers.
At the same time, a weaker pound has made the UK an attractive destination for inbound tourists, boosting domestic travel demand. Travel brands that offer seamless, friction-free payment options – including multi-currency gift cards – stand to benefit from these economic shifts.
Sustainability is at the heart of the travel industry’s evolution. From airlines investing in sustainable aviation fuels (SAF) to hotels implementing eco-friendly practices, brands are under increasing pressure to reduce their carbon footprint.
Customers are also making greener choices, with train travel gaining popularity over short-haul flights and eco-tourism on the rise. Gift cards can play a role here, helping brands incentivise sustainable choices – whether that’s through exclusive discounts for rail travel or promotions on eco-friendly experiences.
Technology is driving major changes across the industry, with digital-first travel experiences becoming the norm. Contactless payments, AI-driven personalisation, and mobile-first bookings are all reshaping the way customers interact with travel brands.
The rise of "super apps" – platforms that consolidate everything from booking and payments to loyalty rewards – is also shifting consumer expectations. Travel brands that integrate seamless digital gift card solutions within their ecosystems can tap into this trend, offering customers a frictionless way to book and pay. For example, Booking.com has a loyalty program and there's huge potential for these apps to incorporate gift cards from leading travel brands into their loyalty programs, giving consumers more reason to use them time and time again
The rise of "workations" has blurred the lines between business and leisure travel. With remote working now a permanent fixture for many, consumers are booking longer stays in destinations that cater to both work and relaxation - Portugal and Indonesia (to name a few) offer digital nomad visas, allowing people to work and travel for months at a time.
For hotels, airlines, and experience providers, this presents an opportunity to promote flexible travel products – and gift cards can be a powerful way to capture this demand. Offering corporate gift card incentives for remote workers or long-stay packages could be an effective way to reach this growing audience.
Despite economic uncertainty, the gift card market for travel and leisure brands continues to thrive, showing consistent year-on-year growth. According to GCVA analysis, gift cards are a key revenue driver, with more consumers using them to pre-book travel experiences, accommodation, and entertainment.
In fact, leisure gift card purchases saw an impressive 15.5% like-for-like growth in the first half of 2024, highlighting their increasing popularity as a flexible, high-value payment method in the sector.
For brands, a well-executed gift card program isn’t just a sales tool – it’s a powerful marketing and loyalty driver. By offering omnichannel gift card solutions, integrating with loyalty programs, and targeting both B2C and B2B audiences, travel brands can unlock new revenue streams and build lasting customer relationships.
At Tillo, we make gift card rewards and incentives simple for both brands and businesses looking to drive growth and revenue - whether you’re looking to expand your distribution, drive corporate sales, or enhance digital gifting, we can help.
Let’s talk about what we could do for your brand. 🚀
