European Tourism 2025 – Trends & Prospects (Q3/2025)

Summer high season highlights strong consumer demand for travel experiences despite higher costs and heatwaves.

Year-to-date data from reporting destinations shows international arrivals in Europe are up 3.0% on last year, while overnights are up 2.7%. Sun- and beach-oriented summer travel continued to support arrivals growth in Southern Mediterranean destinations, including Malta (+12%), Cyprus (+10%), Spain (+4%), and Portugal (+2%). Price competitiveness underpinned strong results in Poland (+13%) and Hungary (+9%), while Norway (+14%) and Iceland (+3%) benefited from rising interest in Northern Europe.  Among the key overseas source markets covered, Japan recorded the strongest growth with arrivals up 24% year on year, albeit from a smaller base and across fewer reporting destinations than other markets. While only three countries have fully recovered to pre-pandemic levels, improved air connectivity and a strengthening yen are encouraging.

Heatwaves and crowding again affected many travellers this summer and featured prominently in negative online conversations about travel in Europe. Twenty-eight per cent of travellers from eight of Europe’s top source markets now say they plan to shift travel to different months over the next two years. The primary motivation is to avoid crowds, with saving money and escaping extreme heat also important. Indeed, the cost of travelling remains high, although inflation for tourism-related services is slowing. This is offset however, by consumers’ willingness to spend an increasing amount of their household budgets on travel, with traveller spending in Europe is expected to rise by 9.9% in 2025.

Adoption of artificial intelligence (AI) as a planning tool is rising, driven by Gen-Z and Millennial travellers. It presents opportunities for destinations to attract demand in the shoulder seasons, particularly from China, which shows the highest AI adoption (40%).

Please find the press release and infographic.