Europe’s tourism shows resilience amid higher costs and shifting travel trends

Europe’s tourism sector demonstrated solid resilience throughout the 2025 Summer season, with travellers continuing to explore destinations across the continent despite higher costs, heatwaves and changing travel patterns. According to the European Travel Commission’s Q3 2025 report, international arrivals to Europe increased by 3% year-on-year, while overnight arrivals rose by 2.7%. Traveller spending is expected to rise by 9.9% this year, with travel expenditure projected to represent 3.1% of total consumer spending—above both 2024 levels and the long-term pre-pandemic average.

The report shows that 30 of 34 European destinations achieved growth in arrivals and/or overnights during the high season, reflecting strong but uneven performance across the region. Southern Mediterranean destinations recorded notable gains, including Malta (+12%), Cyprus (+10%), Spain (+4%) and Portugal (+2%), supported by continued demand for sun-and-beach travel. Northern Europe maintained robust interest, with Norway (+14%) and Iceland (+3%) attracting visitors seeking cooler climates, while Finland (+14%), Latvia (+7%) and Estonia (+4%) also posted increases. Central and Eastern Europe strengthened their position through competitive pricing, with Poland (+13%) and Hungary (+9%) among the strongest performers. In contrast, Germany (-2%) and Türkiye (-1%) saw slight declines linked to exceptional factors such as last year’s Euro football tournament and rising operational costs.

Consumer behaviour continues to evolve, influenced by weather events, capacity constraints and price sensitivity. The report indicates that 28% of travellers across eight major source markets plan to shift their travel months over the next two years, seeking to avoid peak-season heat, reduce expenses and escape crowding. At the same time, digitalisation is reshaping travel planning. The use of artificial intelligence (AI) in trip research and booking has nearly doubled in Europe, rising from 10% in 2024 to 18% in 2025. Adoption is strongest among Gen-Z and Millennials, with China (40%) and the United States (27%) leading global usage. As online travel agencies increasingly integrate AI tools, destinations have new opportunities to encourage shoulder-season demand and offer more personalised services.