Spending outpacing arrivals as Europe’s travel demand remains steady
Some interesting news coming out of Europe as the European Travel Commission reports that inbound travel spending rose faster than arrivals across most destinations.
In its latest quarterly report, the ETC found that overall travel expenditure in Europe is estimated to have increased by 9.7% in 2025, observing that this divergence suggests that tourism performance is increasingly supported by higher per-trip spending and value-oriented demand, rather than volume expansion alone.
That said, the ETC also reported that Europe’s tourism sector maintained its steady performance into the final months of 2025, as travellers continued to prioritize holidays to and within the region despite elevated travel costs.
Year-to-date international arrivals to Europe increased by 3.2% year-on-year, while overnight stays rose by 3.1%. This marks an improvement on the previous quarter, pointing to higher travel demand through the autumn and early winter period.
Travel patterns remained geographically broad. Northern and Central/Eastern European destinations recorded some of the strongest relative increases in inbound flows. And established Southern and Western European destinations also maintained solid performance in volume terms.
Also of note is the fact that higher travel prices continue to shape consumer decisions. While tourism-related inflation is easing, overall costs remain above pre-pandemic levels.
As a result, travellers are increasingly seeking value through off-season trips and alternative destinations, though higher prices are also contributing to shorter stays in some destinations. Tourism Economics’ data shows that 79% of industry professionals cite financial factors as the sector’s most significant current challenge.
Airline data also indicates strengthening shoulder-season demand. Revenue Passenger Kilometres rose by 6.7% in October and 7.1% in November, exceeding peak summer growth rates of 4.4% in July and 6.0% in August. Passenger load factors remained broadly stable at around 84%, reflecting steady demand conditions.
In looking ahead, the ETC said that international arrivals to Europe are forecast to rise by 6.2% in 2026, with long-haul markets expected to play a more prominent role. Long-haul arrivals are projected to increase by 9%, supported by improving air connectivity and easing visa processing constraints.
Miguel Sanz, President of the European Travel Commission, observed that: “The continued resilience of travel demand into late 2025 is a positive signal for Europe’s tourism sector. Particularly encouraging is the fact that growth in traveller spending is outpacing that of arrivals, allowing destinations to focus more on value than volume.”
And Sanz added: “As interest in travelling beyond the peak summer months continues to grow, tourism can deliver more balanced benefits across regions, supporting local economies, jobs and communities throughout the year.”
For the full report, CLICK HERE.
