By Emily Keogh, Founder of Palm
Much of the current commentary on consumer demand frames it as cautious. Spending is slower, bookings are later and confidence is assumed fragile. In the travel sector, these signals are often read as softening demand. I think that interpretation is mistaken.
What we are seeing is not retrenchment but selectivity
After more than two decades in travel and hospitality at Palm, I’ve seen this cycle before: economic pressure does not eliminate demand. It sharpens it. Consumers become more deliberate. The bar rises.
This was evident at a recent Palm-hosted Future of Travel conversation at The Ned members club Parlour, with panellists including Catt McLeod, vice-president of Elegant Hotels Collection and Jenny Southan, founder and CEO of Globetrender. The discussion highlighted that travellers are not stepping back; they are more discerning than ever.
Guests are asking more of every trip.
Not in terms of luxury or scale, but in outcomes: rest, clarity, confidence, connection, perspective. Catt McLeod noted that independent and boutique hotels are seeing more guests asking what a stay will actually give them – beyond rooms or amenities – and how it will fit into their wider life. Jenny Southan described the “endorphin economy,” where emotional return, not performative consumption, drives decision-making.
Practical examples emerged throughout the discussion. Guests increasingly prefer curated itineraries over generic packages, immersive local experiences over standard sightseeing, and low-visibility, private experiences over crowded attractions. Less Instagram bucket lists and more meaningful experiences. Business travellers in particular are evaluating trips for creativity, energy and opportunity for connection rather than merely ticking boxes.
This is not unique to travel. Across sectors, consumers are now asking: not “What do I want?” but “What will this give me?” Status and satisfaction are expressed through discernment rather than visibility or volume. What may appear as quiet demand is actually refined, intentional demand.
What does this mean for businesses?
For businesses, the implications are clear. Premium positioning alone is no longer sufficient. Brands must articulate relevance, purpose and measurable emotional or functional return.
Confidence should not be mistaken for caution. Consumers are increasingly willing to say no: to generic offers, overcrowded experiences and products that feel misaligned. That editing of choices can appear like restraint but is market maturity in action.
Traditional metrics are losing relevance. Volume and reach still matter, but intent, dwell time, loyalty and emotional resonance are now more meaningful indicators of performance. Quiet, deliberate demand does not indicate weakness; it signals strength.
What’s next?
We’re living in a world where we have more data available to us than ever before. The next phase of growth will be defined less by expansion and more by precision.
Businesses that understand their customers, communicate their value with clarity and, frankly, respect their audience’s intelligence will outperform those chasing volume for its own sake.
The challenge is not to stimulate demand, but to earn it. Those who mistake selectivity for decline risk misreading one of the most significant behavioural shifts shaping today’s consumer economy.
As highlighted by our brilliant panellists at The Ned, the winners will be those offering experiences that are intentional, measurable in emotional impact and deeply aligned with what consumers truly value.
Image: One-Michelin Key The Feathers hotel in Woodstock part of Small Luxury Hotels of the World shot by Jake Eastham
