The 2024 NYC tourism year might best be described as a time of adaptation to disruptions. The industry is learning to respond to rapid shifts in consumer behavior, a trend that began as “revenge travel” subsided and has since evolved into inflation-influenced spending patterns. For example, Booking.com recently reported that travelers are booking trips with shorter lead times, indicating a growing tendency to delay vacation planning. Below are some observations from 2024:
High Hotel Rates
The reduced net inventory of hotel rooms—driven by the use of rooms to house migrants and the reduction of Airbnb options—combined with near-2019 levels of tourism resulted in record-high Average Daily Rates (ADRs). A larger portion of tourist spending was allocated to lodging, leaving less for activities and dining. The City Guide 2024 Reader Survey confirmed a slight decline in spending on activities.
Upgraded and More Immersive Experiences
Many attractions, such as Madame Tussauds, the American Museum of Natural History, and Top of the Rock, invested in fresh upgrades and enhancements, raising the bar for all attractions to remain competitive. These improvements reflect the growing demand for unique, high-quality experiences.
Perception Challenges: Migrants and Crime
Issues such as the visible presence of migrants and concerns over crime have negatively impacted tourists’ perceptions of NYC. Additionally, these factors have increased security costs for many businesses.
Volatility in Sales Patterns
Many businesses reported unpredictable sales patterns in 2024, including a soft summer, an improved fall, and a very strong December for Broadway. This volatility made planning challenging and fostered an environment requiring frequent and rapid adjustments.
Challenges to Full-Funnel Media Strategies
The pressure to demonstrate measurable media performance has hindered the development of comprehensive marketing strategies that build brand loyalty. Digital Return on Ad Spend (ROAS) metrics are often flawed due to biased algorithms, last click and post impression click attribution, and platform manipulations. This demand for quantifiable results has led many marketers to deprioritize brand-building initiatives that would strengthen their long-term market position.
On balance, the trends of 2024 suggest that NYC tourism is undergoing a transitional period that demands reimagining, cautious investments, and agility.
While projecting the future remains an uncertain endeavor, I will proffer a few thoughts to spark discussion:
Key Trends to Watch in 2025
Shifting Demographics
Millennials are entering their prime spending years, Gen Z is embracing travel as part of their lifestyle, and the Baby Boomer population continues to shrink. Understanding the patterns of each generation, effectively communicating how your offerings align with those preferences, and allocating resources accordingly suggests tailoring messaging for different media based on higher consumption levels by generation. For example, the average age of City Guide readers dropped by one year in 2024 to 40, with 65% of readers under 44.
Non-Traditional Competition
Tourists have an increasing variety of interests and leisure options. The growing appeal of nature-based activities has driven exploration of Central Park, the High Line, and other free attractions. Additionally, the ubiquity of in-home streaming entertainment competes with Broadway and other visual experiences. To stay competitive, venues must enhance and communicate their “worth-it” factor.
AI: The Latest Disruptor
AI is rapidly transforming trip planning, with over 40% of affluent travelers reporting its use to create itineraries. Learning to appear in AI-generated results with accurate, relevant information will be a necessary skill for many businesses. At the same time, traditional SEO and web development may yield diminishing returns, even as they require sustained effort. Additionally, the shift from search engines to AI-based tools will make it more challenging to target prospective visitors through digital advertising.
Political and Economic Wild Cards
Factors such as inflation, border policies, congestion pricing, and global perceptions of the U.S. are difficult to predict but could significantly impact NYC tourism. Any unexpected changes in these areas could influence visitor volume and spending, requiring businesses to pivot quickly.
Looking Ahead to 2025
The outlook for 2025 holds promise. The number of tourists visiting NYC is expected to grow, inflation is currently moderating, and the number of migrants housed in the city is declining, leading to more hotel rooms returning to market. These trends, along with other positive indicators, signal cautious optimism for the tourism industry.
Growing a business and executing a marketing strategy in this environment remains more challenging than ever. However, by staying adaptable and responsive to the evolving landscape, businesses can position themselves for success. Let’s remain hopeful and prepared to meet the challenges ahead.
