How can travel brands navigate the perils of overtourism?

Almost two-thirds of UK consumers say they avoid destinations due to overcrowding

Overtourism has become a pressing issue, with coverage inmainstream media capturing attention of consumers and brand owners alike. In a recent survey by Hall & Partners most consumers see this as an area for concern (80% in UK vs. 84% in US). It is clearly casting a shadow over the idyllic allure of popular destinations.

This phenomenon occurs when too many tourists flood a location, leading to several issues. These include environmental degradation, cultural erosion, and local unrest.

One major consequence is rising rents due to property scarcity. High demand from hoteliers and developers drives new construction, while existing homes are increasingly used for short-term rentals like Airbnb and Vrbo.

Additionally, wealthier second-home buyers from other regions further reduce the local housing supply. This scarcity pushes prices higher, making it harder for local residents to find affordable housing. that the overall impact can be deeply negative for communities struggling to maintain stable and accessible living conditions.

Travel brands face a dilemma. Their commercial success relies on attracting tourists, yet they must also manage the negative impacts of overcrowding

To maintain sustainable growth and positive brand perception, travel companies must adopt strategies that address the multifaceted challenges of overtourism. Sticking your head in the sand and hoping the problem will solve itself is not the answer, as someone smarter than I once said, hope is not a strategy.

Tensions at play

The core issue is the tension between economic interests and sustainable practices. Travel brands depend on high visitor numbers, as occupancy and fill rates are critical KPIs across the industry. More travellers mean higher revenues, which is essential for businesses operating on thin profit margins. Many rely on scale to deliver profitable growth, making it challenging to balance financial success with sustainable practices.

However, this reliance on high visitor numbers can ultimately harm the very destinations that attract tourists. In fact, H&P research reveals almost two-thirds (65%) of UK consumers and 62% of US consumers cite overcrowded attractions and locations as a reason to avoid a destination. This concern ranks second only to cost, which 68% of UK travellers and 66% of US travellers identify as the main barrier to visiting a location.

The tensions are palpable with locals increasingly concerned with the cultural degradation risks for Venice’s canals, Barcelona’s Gothic Quarter, and Majorca’s beaches who are all struggling under the weight of excessive footfall, leading to strained local resources and growing resentment among residents.

Travel brands must find a way to strike a balance by generating economic benefits without harming the environment or local communities. However, many consumers feel they are falling short.

Only 10% of UK consumers and 18% of US consumers believe that brands are "doing enough" to address overtourism. This gap between consumer expectations and brand actions presents a major opportunity. Brands that proactively tackle the issue can gain trust and loyalty from both travelers and local communities.

Different approaches for different brands

To address the current sentiment and media backlash, it’s important for brands to have a strategic approach to navigate these stormy waters. Each category perhaps with its own unique challenges and opportunities.

• Cruise brands – These giants of the sea are often cited as major culprits in overtourism. Cruise ships can unload thousands of tourists into small port cities in a matter of hours, overwhelming local infrastructure. Companies may now need to rethink their itineraries and shore excursion practices – especially considering localised legislation with short term visitor taxes and tariffs for ‘short stay’ entrants.
  
  Cities like Venice have introduced a €5 city tax for visitors staying less than 12 hours, a policy clearly aimed at cruise ship tourists. However, this approach raises concerns about fairness, as overtourism has many contributing factors beyond just one group of travelers.
  
  Is imposing fees and restrictions a sustainable long-term solution? Or should there be a better dialogue between governments, travel brands, and businesses to create a more balanced approach? After all, tourism is a vital economic driver for many destinations worldwide, and collaboration may be key to managing its impact more effectively.
  
  Cruise companies have a unique opportunity to take a proactive role in managing overtourism. By limiting the number of passengers disembarking at once, collaborating with local governments to regulate tourist flow, and investing in sustainable practices both onshore and offshore, they can help reduce the strain on popular destinations. These efforts would not only benefit local communities but also enhance the overall travel experience for their passengers.
  
• Short-stay rental brands – Platforms like Airbnb, Vrbo, and other short-stay rental services have transformed the travel industry, offering unique and affordable accommodation options. However, their rapid growth has also contributed to housing shortages and rising rental prices in cities such as Barcelona, Amsterdam, and Venice, making it harder for locals to find affordable housing.
  
  Brands such as Airbnb can address these issues by working with city officials to enforce regulations that limit short-term rentals in residential areas and encourage listings in less-touristy neighbourhoods.
  
  Airbnb was originally designed to connect travellers with unique experiences, not to create a new business model for property owners. However, in many popular destinations, it has evolved into a large-scale commercial enterprise. As a result, many locals now see it as a driver of housing shortages and rising rents, straying from its original intent.
  
  Travel brands need to take the lead by realigning with their original mission. They should reinforce their core values, improve communication, and implement stronger checks and balances to stay true to their founding vision, which is connecting travellers with authentic experiences.
  
  By actively positioning themselves as part of the solution, these brands can regain trust and demonstrate their commitment to responsible tourism. Doubling down on sustainable practices, both for hosts and guests, will help minimise the negative impacts and ensure a more balanced approach to travel.
  
• Airlines: The rise of cheap flights has taken much of the heat for the current predicament globally of ‘over tourism’. While airlines themselves might not cause overtourism, their promotions of low-cost fares to high-demand destinations are seen by many to play a significant role. Low-cost airlines could diversify their offerings by highlighting lesser-known locales, spreading the tourist footprint more evenly. Collaborating with tourism boards to create attractive packages for off-the-beaten-path destinations can also help distribute the influx more sustainably.

Is social media fuelling overtourism?

The current crisis may not be the fault of any single industry, but rather a reflection of how we consume media and information today. Social media platforms and influencers, who constantly promote travel and fuel wanderlust, have played a significant role in driving tourism to certain destinations. Their influence may be contributing to the surge in overcrowded hotspots and the challenges that come with it.

When influencers showcase so-called "hidden gems," these destinations rarely stay hidden for long. In fact, many locations worldwide have blamed viral social media exposure for unsustainable spikes in visitor numbers, leading to overcrowding and environmental strain.

This raises an important question: Should social media companies take a more responsible approach? By adjusting their algorithms to promote a wider range of destinations and distribute attention more evenly, they could help reduce pressure on overburdened hotspots.

Artificial intelligence could play a key role in driving responsible tourism. But what standards should platforms and users set for themselves? How can AI be leveraged to encourage sustainable travel choices rather than fuelling overtourism? These are critical conversations that need to happen as digital influence continues to shape global travel trends.

Three essential steps for travel brands

1. Lead, don’t follow: By redirecting tourists from overcrowded hotspots to emerging destinations and more dynamic itineraries, companies can alleviate pressure on popular locales and distribute economic benefits more equitably. This strategy not only helps preserve iconic sites but also enriches the travel experience by introducing tourists to new cultures and landscapes.

2. Leverage FOMO: Implementing measures to regulate tourist numbers is essential for sustainable travel. Strategies like timed entry tickets, reservation systems for popular attractions, and dynamic pricing models can help control visitor flow and discourage travel during peak seasons. These solutions not only enhance the experience for tourists but also reduce the strain on local communities.

Beyond sustainability, these approaches can create added value for travel brands. By leveraging scarcity, they can introduce a sense of exclusivity and desirability, amplifying demand in a more controlled way. Ultimately, effective operational strategies will be key in shaping the future of sustainable tourism. By taking the lead in responsible travel management, brands can engage in meaningful conversations while also unlocking new opportunities for growth and innovation.

3. Walk the talk (it’s expected, not a marketing lever): Commitment to sustainability must go beyond mere lip service. Travel brands need to invest in eco-friendly infrastructure, support conservation efforts, and engage in corporate social responsibility initiatives that genuinely benefit local communities. Consumers no longer see sustainability as a bonus; they expect it as a standard practice.

Before joining the conversation on sustainability, brands must first take meaningful steps to implement real change. Sustainability is now a baseline expectation, not a differentiator. Companies that fail to act risk losing credibility and trust.

To make a lasting impact, brands should focus on tangible improvements—reducing carbon footprints, minimizing waste, and actively supporting local artisans and businesses. Building a reputation for genuine sustainability fosters consumer trust, which is a key driver of long-term brand success.

From promoters to protectors: The future of travel brands

To truly connect with today’s travellers, brands must go beyond simply promoting destinations; they must become stewards of sustainable tourism. By taking responsibility for preserving the places they showcase, they can earn the trust and loyalty of those who seek meaningful and responsible travel experiences.

Growth in travel won’t come from following trends—it will come from setting them. As consumer expectations evolve, sustainability is becoming a long-term priority for both travelers and local communities.

By promoting lesser-known destinations, managing visitor capacity, and investing in sustainable practices, travel brands can address overtourism while ensuring travel remains a positive force, both economically and experientially. The path to responsible tourism is challenging but essential for preserving both the industry and the destinations that make it thrive.