The global travel and hospitality industry is undergoing a profound transformation. What began as a temporary response to pandemic-era restrictions has evolved into a long-term, structural shift: local and domestic travel is now a defining force, fundamentally reshaping traveler expectations and the strategies brands must deploy to capture and retain demand. For travel and hospitality leaders, this is both a challenge and an opportunity—one that demands a digital-first, customer-centric approach to future-proof the business.
As international borders closed and uncertainty lingered, travelers turned inward—seeking safety, flexibility, and a change of scenery within their own countries. In markets like China and the U.S., domestic travel has not only rebounded but surpassed pre-pandemic levels. This trend is driven by a desire for nearby getaways, family visits, and remote outdoor experiences, and is reinforced by government policies that have redirected international travel spend into local economies. The rise of remote work and “workation” policies has further blurred the lines between business and leisure, creating new traveler segments and opportunities for brands to engage.
Today’s local traveler is digitally savvy and expects seamless, contactless experiences at every stage of the journey. Health and safety remain paramount, but so does the need for flexibility—easy modifications, cancellations, and refunds are now table stakes. Price sensitivity is high, and travelers are increasingly looking for personalized offers, bundled local experiences, and real-time information delivered through digital channels. The expectation for convenience and transparency is universal, but generational and regional differences persist: younger travelers are more likely to embrace digital self-service, while older guests may still value human interaction and require additional support.
To capitalize on the ongoing domestic travel boom, brands must rethink their digital strategies across the entire customer journey. Here are the key imperatives:
First-party and third-party data are essential for understanding new traveler segments and delivering hyper-targeted, relevant experiences. Modern customer data platforms (CDPs) enable brands to consolidate data from multiple sources, build rich customer profiles, and activate real-time personalized offers. For example, a hotel chain can identify guests who previously traveled for business but are now booking leisure stays, and tailor offers such as weekend getaways or local experiences. Combining historical data with current sentiment ensures that marketing is timely and relevant, not just a rehash of pre-pandemic tactics.
The pandemic has accelerated the adoption of contactless technologies across the travel journey. Mobile check-in and check-out, digital room keys, touchless payments, and smart kiosks are now expected features. These technologies not only enhance safety but also streamline the guest experience, reduce friction, and free up staff to focus on higher-value interactions. Hotels and airlines that enable guests to manage their journey via mobile devices are seeing higher satisfaction and repeat bookings. For independent properties, partnerships with technology providers can rapidly enable these services without the need for heavy investment.
The unpredictability of local regulations and traveler sentiment requires brands to operate with greater agility. Adopting a startup mindset—deploying small, cross-functional teams and leveraging cloud-native platforms—enables rapid experimentation and continuous improvement. Solutions like rapid commerce accelerators empower travel brands to quickly launch and adapt digital sales platforms, onboard new partners, and bundle services to meet changing demand. Agile content management systems allow properties to update guests in real time about local regulations, amenities, and attractions.
With domestic travelers seeking unique, local experiences, brands have an opportunity to differentiate by curating and promoting activities that go beyond the traditional stay or flight. This could include partnerships with local businesses, exclusive access to attractions, or bundled packages that combine accommodation, dining, and experiences. Direct digital engagement—via mobile apps, websites, and messaging platforms—allows brands to communicate up-to-date information, promote targeted deals, and provide reassurance around health and safety protocols. This direct relationship also reduces reliance on third-party platforms, helping brands build richer first-party data and foster long-term loyalty.
Traditional loyalty programs have long targeted frequent business travelers. In the new era, brands must rethink loyalty to attract and retain leisure guests who may travel less often but expect more value and flexibility. This could include allowing points to be redeemed for local experiences, vacation rentals, or wellness packages, and creating tiered benefits that reward engagement and spend across the brand’s ecosystem. Collaborating with local businesses to offer unique, location-specific rewards can further enhance loyalty and drive repeat visits.
The rise of local and domestic travel is not a temporary detour—it is a catalyst for long-term transformation. Brands that embrace digital-first, customer-centric strategies will be best positioned to capture new demand, build resilient operations, and foster lasting loyalty. As the travel industry continues to navigate uncertainty, the ability to adapt quickly, leverage data intelligently, and deliver seamless, personalized experiences will separate the leaders from the laggards. By meeting travelers where they are—locally, digitally, and personally—brands can turn today’s challenges into tomorrow’s growth.
Ready to capture the new wave of local and domestic travel demand? Connect with Publicis Sapient to accelerate your digital transformation and future-proof your travel business.