Family travel budgets inch upward but parents prioritize value
Family travel budgets inch upward but parents prioritize value
There's both good news and bad news for the hotel industry when it comes to family travel heading into the new year.
The good news is families still intend to travel and spend money, according to the latest iteration of the NYU SPS Tisch Center of Hospitality's 2025 U.S. Family Travel Survey. The bad news is they're definitely looking to be more cost-conscious, and the hospitality industry could be doing a better job meeting them where they're at.
During the latest episode of the CoStar News Hotels podcast, NYU instructor and survey author Anna Abelson discussed how affordability is ranked as the biggest obstacle for 73% of parents surveyed.
"Families are trying to be more creative," she said. "So what they're trying to do, they're trying to maybe identify airlines that are not charging extra fees for sitting together or maybe luggage or maybe looking for special discounts to go to any amusement parks. ... Cooking maybe in the hotel versus going out."
The survey — which was done in conjunction with the Family Travel Association — also highlighted how 13% of families reported having children with special needs but graded the hotel industry poorly on inclusivity. Those families collectively rated the hotel business a C-.
"Some of the takeaways were they indicated that [travel companies] should consider better staff training [focusing on] understanding the needs of neurodivergent kids," she said. "So if we're talking about all-inclusive [resorts], we're talking about kids clubs having staff that actually is trained to deal with kids that might require different redirection or maybe different attention and then more sensory-friendly options and also ensuring accessibility facilities."
The good news for hoteliers largely ties back to a strong intent to travel for families, with 92% of parents saying they plan to travel with their children in the next year — marking the highest level since the COVID-19 pandemic.
Average travel spending hit $8,052 in 2024, a 20% increase over 2023, and 39% of parents plan to increase their spend going forward with another 42% expecting to spend at the same level.
Other survey highlights include:
- Children have a growing influence on travel destinations with 61% of parents saying they involve their kids in trip planning.
- Top destinations include beaches, visits to see family and friends, theme parks, and national or state parks.
- A total of 71% of respondents have taken trips with three or more generations of their family together in the past three years.
For more from the podcast interview, listen to the podcast embedded above with NYU's Anna Abelson or dive in to the full survey for more details results.
Luxury takes the next step
We all have an idea of luxury and we have an idea of what luxury means to us. Be that attentive service, the perfect spa, even innovative technology, our concept of luxury is as unique as we are.
To deliver a truly memorable luxury experience, exceptional hotels are learning to take a step further. In the evolving world of luxury travel, extravagance alone no longer defines greatness. Infinity pools, private butlers and oceanfront suites have become expected amenities rather than aspirational advantages.
The true icons of modern luxury are the resorts that go deeper — those that build emotional resonance through experiences that could only exist in one place and nowhere else on earth. At the world’s leading properties, hospitality has become an art of connection: to landscape, to legacy and to a greater sense of purpose.
At Auberge Etéreo on Mexico’s Riviera Maya, the journey begins with curiosity. Guests don’t simply tour local ruins — they join archaeologists on treks into the dense Yucatán jungle to explore ancient Mayan “Lost Cities” swallowed by vines and time.
Just up the coast, Maroma invites travelers into wellness traditions shaped by the land itself. There, relaxation and ritual take forms not found in a conventional spa menu: underwater meditation, guided jungle walks in search of medicinal plants, even restorative therapy linked to sacred melipona honey, once revered by the Maya.
Across the Atlantic in South Africa, Singita Ebony Lodge redefines immersion by inviting nature to flow through daily life. Safari drives slide seamlessly into silent afternoons beside a river-view plunge pool where passing elephants replace passing thoughts. At andBeyond Phinda, dusk is said to arrive with its own symphony — a chorus of chattering monkeys and fluting birds that accompanies sunset drinks on open-air decks as though composed by the land itself.
The settings of these places are powerful, but their architecture elevates the experience into something unforgettable. In Brazil, Rosewood São Paulo rises like a living sculpture from the city. The hotel is sheathed in native trees and climbing vegetation that reclaim a vertical forest within one of Latin America’s most dynamic capitals.
In Croatia, Villa Nai 3.3 barely reveals itself at all; carved into the limestone hillside of Dugi Otok, it appears less like a man-made structure than a continuation of the island’s rugged terrain. Japan takes this idea one step further on Naoshima Island, where Benesse House — conceived by renowned architect Tadao Ando — dissolves the boundaries between gallery and guestroom. Concrete planes, precise geometry and the quiet presence of works by Warhol and Kusama transform a night’s stay into a meditative dialogue with art.
In the Maldives, JOALI turns architecture into wonder with whimsical creations like a manta ray treehouse and a subaquatic sculpture garden that glimmers beneath the sea. Even in the monumental silhouette of Atlantis The Royal in Dubai, where six soaring towers are strung together by hovering sky bridges, design is not a spectacle for its own sake but an instrument for crafting light, shade, intimacy and awe.
Increasingly, the world’s most celebrated resorts carry a shared conviction: that luxury is meaningless without responsibility. Sustainability has matured from a marketing claim into a philosophy that drives construction, energy and guest engagement. In Saudi Arabia’s Red Sea, Shebara Resort hovers lightly over coral ecosystems thanks to solar-powered engineering and prefabricated villas designed to protect marine life. Villa Nai 3.3 is built from stone excavated on-site, reducing its environmental footprint while paying homage to the island’s agricultural heritage. Bhutan’s COMO Uma Punakha is rooted in the national ethos of Gross National Happiness, operating on principles of community benefit and environmental protection.
The Brando in French Polynesia may stand as the ultimate model: powered by coconut oil biofuel and deep-sea cooling systems, it doubles as a scientific outpost where marine biologists invite guests to participate in sea turtle research and reef preservation. At Londolozi in South Africa, conservation is inseparable from hospitality. The reserve, whose name means “protector of all living things” in Zulu, restores land, empowers local stewardship and treats nature not as a backdrop but as a shared legacy.
These destinations succeed not only because they are beautiful, but because they tell stories that stay with their guests for years. Some places feel as though they were written long before the first visitor arrived. Londolozi’s century-old history of resilience and restoration includes a powerful chapter: Nelson Mandela’s quiet recuperation there after his release from prison, a moment that still infuses the land with a sense of healing.
Kasbah Tamadot in Morocco carries a quieter mystique. Once a Berber fortress perched in the Atlas Mountains, it is filled with carved wooden doors, shadowed courtyards and antique treasures gathered over decades — an enigmatic world where time seems to fold around each guest. The Brando is cinematic by nature, built on Marlon Brando’s private island of Tetiaroa, where Polynesian folklore and Hollywood legend collide beneath the palms. But it is not just the architecture or history that stirs emotion. It is the rituals: sunrise yoga facing the ocean, herbal tea ceremonies in Bhutan, fire-lit storytelling on South African plains — moments crafted not for Instagram, but for memory.
If emotional connection is the heart of world-class hospitality, personalization is its soul. At Alila Villas Uluwatu in Bali, guests choose their preferred service style — silent and invisible or warm and attentive — shaping their stay according to their emotional needs. In Mexico, the Waldorf Astoria at Pedregal assigns personal concierges who intuit rhythms of privacy and celebration, arranging everything from surprise anniversary serenades to sunrise whale-watching expeditions launched directly from private terraces.
What truly defines these resorts, however, is their devotion to cultural authenticity. The highest expression of luxury today is not detachment from place but deep, respectful integration with it. At Rosewood San Miguel de Allende in Mexico, local artisans shape the architecture, furniture, textiles and art, creating a living museum of contemporary Mexican design. The Four Seasons Resort in Koh Samui stays faithful to Thai tradition in everything from its architecture to its bold Southern Thai cuisine. Rosewood São Paulo champions Brazilian identity through a 450-piece art collection sourced exclusively from national artists.
Across these extraordinary destinations, a new definition of luxury emerges—one grounded not in extravagance but in experience. The world’s finest resorts do more than offer places to stay; they invite guests into meaningful stories shaped by nature, history and human connection. They are proof that luxury can be intimate, dynamic and deeply responsible. In a world where travel is often rushed and transactional, these properties remind us what a journey can be: a return to wonder.
Alex Sogno is CEO of Global Asset Solutions.
The opinions expressed in this column do not necessarily reflect the opinions of CoStar News or CoStar Group and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to contact an editor with any questions or concern.
Highgate and The Kessler Collection have announced a new strategic alliance that will transfer management of several of Kessler's hotels to Highgate.
A news release announcing the deal notes Highgate is taking over operations multiple properties, but highlighted three in particular:
- The Casa Monica Resort & Spa in St. Augustine, Florida.
- The JW Marriott Savannah Plant Riverside District in Savannah, Georgia.
- The Grand Bohemian Lodge Greenville, in Greenville, South Carolina.
As part of the deal, Highgate will create a new Kessler Hospitality division that will include Kessler's current property-level employees and management-focused corporate leaders.
“Our mission has always been to create inspired guest experiences rooted in artistry, individuality and purpose,” Mark Kessler, president of The Kessler Collection, said in the news release. “When we looked for a partner to help us take the Grand Bohemian brand into its next chapter, Highgate stood out. Their operational discipline, deep revenue expertise, and ability to leverage technology to improve oversight and profitability made them the clear choice to complement our creative vision and expand our portfolio.”
In all, Kessler owns 10 properties, with all but one in the southeast U.S. Highgate invests in and manages hotels across the globe, with a portfolio of more than 400 properties.
“This alliance brings together two industry leaders with a shared vision for creativity, excellence and growth,” said Highgate Principal Richard Russo. “By combining Kessler’s creativity and design-forward sensibility with Highgate’s investment acumen and operational expertise, we’re creating meaningful long-term value for these exceptional assets and setting a new standard for performance in the luxury and lifestyle space. We’re proud to welcome many talented Kessler team members to Highgate — their vision and ingenuity further strengthen our platform and reinforce Highgate’s ability to lead in this important area of hospitality.”
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