European Travel Spending in 2025

As we move further into 2025, European travel spending continues to evolve, influenced by shifting consumer preferences, economic conditions, and changing travel habits. Despite caution in financial decision-making, the first quarter of the year has seen increased enthusiasm for holidays and leisure trips compared to the previous year. However, inflation, fluctuating exchange rates, and the rising cost of accommodation are prompting many travellers to rethink how they spend their travel budgets.

Spending habits across European nations continue to show distinct trends:

• Spain
Spanish travellers are preferring cruises and hotel stays, showing a preference for relaxed, all-inclusive experiences. With Spain’s well-established tourism sector, this trend is benefiting coastal and island destinations.

• France & Italy
International travel remains popular in these countries, with many opting for trips abroad rather than domestic holidays. Long-haul destinations and cultural hotspots are particularly attractive to these travellers.

• Germany
There is a noticeable preference for domestic travel among German consumers, with many opting for weekend getaways, scenic countryside retreats, and nature-based tourism.

• United Kingdom
Travel spending in the UK has seen some resistance, with more focus on local leisure activities such as dining out and entertainment. This shift could provide a boost to the domestic tourism sector and hospitality businesses.

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1. The Rise of “Detour Destinations”
Instead of heading to well-known tourist hotspots, more travellers are exploring nearby hidden gems. Lesser-known cities and rural locations close to major hubs are gaining popularity as people seek unique and less crowded experiences.

2. Day Trips and City Hopping
With improved rail networks and budget-friendly transport options, short city-hopping trips are on the rise. Many travellers are opting for brief but immersive experiences rather than extended stays in one location.

3. Longer Stays and Workations
Remote work continues to influence travel habits, with more people combining business and leisure. Extended stays in scenic locations allow for a better work-life balance while exploring new destinations.

4. Affordability and Rising Costs
While airfare prices have remained relatively stable, accommodation costs have increased. Many travellers are adjusting their budgets by opting for alternative lodging, such as home rentals or boutique stays, to maintain affordability.

5. Sustainability and Eco-conscious Travel
Environmental considerations are playing a large role in travel choices. Demand for eco-friendly accommodation, low-carbon transport options, and sustainable tourism practices continues to grow across Europe.

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As 2025 progresses, travel spending will continue to be shaped by financial factors, new trends, and changing consumer expectations. While some travellers are splurging on luxury experiences, others are wanting more budget-friendly alternatives and sustainable options. Businesses in the tourism and hospitality sectors must adapt to these preferences to stay competitive in a landscape.
For those planning their next trip, keeping an eye on these trends can help make informed decisions and maximise travel experiences in the year ahead.
Looking for guidance on travel PR and marketing? Palm PR specialises in crafting compelling campaigns that elevate brands in the tourism and hospitality sectors. Get in touch to make your travel business stand out in 2025!