Research Briefing | Sep 25, 2023

Higher prices not denting travel recovery in Europe

Services inflation in the Eurozone has remained persistent and within this the price of travel related items such as international flights and hotels have risen significantly this year.

What you will learn:

  • Package holidays have risen in line with inflation this year proving popular among both low- and middle-income households due to the cost-of-living crisis.
  • Consumers continue to prioritise spending on travel throughout this year with European arrivals just 3.8% below 2019 levels on average in the year to date. However, the increase in the cost of spend for travel services, such as restaurants and hotels, is significantly less than other costs such as housing, utilities and food.
  • High inflation is not having a significant impact on destination choice. Destinations with similar rates of inflation in Q2 2023 saw varied rates of recovery in nights.
  • Recent price rises may not be sustainable and should moderate. Tourism hotspots that have seen a surge in visitors this year and will justifiably be increasing prices across tourism establishments due to higher variable costs such as food.
Back to Resource Hub

Related Posts

Growing confidence and easing perceptions of challenges in tourism

Tourism Economics’ latest Travel Industry Monitor (TIM), a quarterly survey among tourism professionals conducted in Q4 2023, identified strong expectations of growth in 2024 and beyond.

Find Out More
airport
Chinese Outbound Travel to Gain Momentum in 2024

Chinese outbound travel finally restarted in 2023. This re-opening was keenly anticipated by global destinations, given the significance of China as an outbound market. Chinese outbound travel will stride further towards recovery in 2024.

Find Out More
Assessing the potential impacts of the GCC Unified Visa

The GCC countries have approved a unified tourism visa system which aims to boost tourism and economic diversification across the region. The new system should come into effect in 2024 or 2025 having been announced at the recent GCC meeting in Muscat.

Find Out More
Disney’s Effect on Fueling Florida Economy, Jobs and Tourism

Walt Disney World Resort, one of the world’s most visited vacation destinations, generated $40 billion in economic impact across Florida and more than a quarter of a million total jobs in fiscal year 2022, according to a study from Oxford Economics.

Find Out More