The Power of the Solo Travel Economy

Written by:

Share

Facebook
Twitter
LinkedIn
Pinterest
Email
Print

Many visit a Starbucks for its ‘third place’ environment where they often sit alone, immersed in their own virtual worlds. These ‘seat warmers’ enjoy almost complete sound insulation thanks to their state-of-the-art audio gear and interact through screen technology.

In a case of missed opportunity, marketers have traditionally taken a functional approach to connect with the solo consumer, often focusing on practical (not experiential) solutions.

It’s not just the branded coffee, but the entire experience that makes me-market patrons feel they are not alone. Starbucks offers belonging to a community, and like many other casual dining chains, caters to an evolving demographic: the solo consumer.

There is no longer a stigma about being in public places alone. Mintel research reveals that only 21 percent of German singles perceive themselves as lonely compared to almost 40 percent of the German population. Solo consumers don’t seek sympathy — they want empathy with brands that understand their priorities and preferences.

Demographic Shifts

Globally, single-person households are rising at the fastest rate of all household types. In the U.S., 29 percent of all households are single. This phenomenon is even more pronounced in South-East Asia. In Japan, 34 percent of all households are single while in South Korea, this figure is an astounding 42 percent.

This rise in single-person households reflects a conscious lifestyle choice. Younger individuals, for instance, are increasingly delaying commitments to relationships and marriage. In China, more than half of individuals aged 25 to 29 remain unmarried highlighting a growing choice — particularly among women — to determine their own destinies without the pressure to marry. South Korea’s 4B movement and the trending #boysober on TikTok have further encouraged women to opt out of traditional relationship norms.

Solo Travel Economic Power

The rise of the solo consumer defines a new economic dynamic: the solo economy. One sector experiencing significant growth is travel and hospitality. The global solo travel service market was valued at approximately $130 billion in 2023 and is projected to reach nearly $200 billion by 2032.

This market’s growth potential means that solo travelers can no longer be dismissed as a niche audience.  According to an American Express survey, 76 percent of millennials and Gen Z said that they were planning on taking a solo trip in 2024 which is set to grow in 2025. Solo travel represents a prime opportunity for industry players to design experiences tailored specifically to the needs of the individual traveler. For instance, Four Seasons offers the Solo Travel – Naviva All-Inclusive Package, promoting “personal growth, genuine connection, and thoughtful individualization.”

Table For One

The increasing normalization of solo consumers continues to disrupt consumption patterns. In 2024, solo dining in the U.S. saw an 8 percent increase in OpenTable compared to the previous year.  Plus, in the U.S., solo diners spend 48 percent more per person than other diners. Younger consumers are at the forefront of this quiet solo dining revolution. According to research from OpenTable and KAYAK, 68 percent of Gen Z and millennials reported dining solo at a sit-down restaurant within the past 12 months.

Dining out also holds an additional appeal for solo diners with a focus on self-reflection and personal growth. In fact, 34 percent of respondents cited “me time” as the primary motivation for dining alone.

Me-Market

Singles may face higher costs, such as housing, but the appreciation of financial independence has given rise to a me-market where individuals confidently and unashamedly spend on themselves.

Self-care plays a pivotal role for solo consumers, particularly among women; in Germany, almost 50 percent of female singles prioritize self-care. Brands can make a difference. For example, Marriott Bonvoy offers a range of solo travel tips, including a 20-minute video titled “How to Have a Life-Changing Trip By Yourself,” designed to inspire and empower solo travelers.

Marketers should pay close attention to creating a solo premium. The trend of self-gifting is gaining momentum; according to the Salsify 2024 Consumer Holiday Shopping Report, 73 percent of millennials and 68 percent of Gen Z were inclined to purchase items for themselves during the holiday shopping season.

In a case of missed opportunity, marketers have traditionally taken a functional approach to connect with the solo consumer, often focusing on practical (not experiential) solutions. For example, smaller food packaging sizes cater to individual needs. HelloFresh’s “Dinner for One Delivery” offers a convenient option for single individuals.

However, to truly resonate with the solo consumer segment, marketers must go beyond functionality and tap into an emotional sweet spot. For instance, Krispy Kreme’s Triple Choc Indulgence Boxed Single appeals to the desire for self-indulgence (perfectly suited for an evening watching Netflix). We’re not touching the nutritional backstory on this one.

Retail for Solos

The solo consumer offers a chance for brands to engage with a segment that has been largely overlooked. The retail sector is no exception. Urban demographics are skewed towards single households who are more likely to pay a premium for convenience. As a result, retailers are rethinking which retail formats can best compete in urban environments.

The continual expansion of Tesco Express, a small-format concept of the leading supermarket chain in the UK has become a one-stop shop for both everyday essentials and occasional luxury indulgencies. This success could serve as a blueprint for Walmart to reconsider its decision to discontinue Walmart Express in the U.S., which was phased out in 2016.

Meanwhile, IKEA is expanding its global network of smaller stores in city centers, including the recent opening in Arcardia, Los Angeles. As Javier Quiñones, CEO and Chief Sustainability Officer of IKEA U.S. noted, “Our expansion goal is simple: to be where people are, whenever and however they want to experience IKEA.”

Solo consumers are empowered to make lifestyle choices on their own terms, but retailers must also address their emotional needs, such as the need to feel valued. According to the Hilton 2025 Trends Report, 46 percent of solo travelers believe that friendly and helpful staff would improve their travel experience. This highlights a clear opportunity for employee training programs—not just in hospitality, but across all customer-centric industries—to bridge this gap.

Starbucks understands this dynamic. Baristas have long asked customers for their names and written them on cups. And for those seeking some me-time, Starbucks provides the time and space where individuals can enjoy their coffee experience – however, they prefer.

Related

Articles

Scroll to Top
the Daily Report

Insights + Interviews right to your inbox.

Skip to content