A “notable shift” towards value-driven travel experiences in Europe has been confirmed as travellers become increasingly price-conscious.
The European tourism sector surpassed pre-pandemic figures in the summer quarter, “showcasing resilience despite economic headwinds and geopolitical challenges”, according to latest research from the European Travel Commission (ETC).
The data showed a 6% rise in foreign arrivals over 2019 levels and a 7% increase in year-on-year growth.
Overnight stays have also grown by five per cent year-on-year, an upward trend driven by major events, improved air connectivity – especially from China – and “lingering” pent-up demand.
The European tourism trends and prospects report for the third quarter found that while headline inflation has eased, services inflation remains elevated, affecting both tourism businesses and travellers.
Prices for international flights in the euro area declined in July and saw a slight increase in August, but inflation for accommodation and package holidays continued to surpass overall services inflation.
Overall tourist expenditure across Europe is projected to rise by 10.3% year-on-year to reach €719.7 billion, with western Europe accounting for 74% of this total.
More than half of European destinations exceeded 2019 levels of foreign arrivals, with nearly a third increasing over 10%.
Southern Mediterranean destinations showed particularly strong performance, led by Serbia (+34%) and Malta (+32%) – both from a smaller base – followed by Portugal and Greece (each +19%).
However, Turkey (+16%) faces rising competition as budget-conscious travellers turn to other Mediterranean destinations due to increasing prices.
Recovery is slowest in the Baltics, Finland, Romania, and Slovakia, where declines from 2019 levels range from 24% to 11%, according to the report.
European air travel demand rose by 3.4% over the summer months, despite disruptions like cybersecurity issues and strikes.
“Frequent air traffic disruptions over the summer involving a number of different European countries are likely to have dampened the recovery across the region,” the ETC noted. “Recent statistics have reported that nearly 40% of passengers in Europe this summer experienced delays or cancellations.”
The report highlighted the growing concern of overcrowding, highlighting the uneven distribution of tourism flows across Europe.
“While the increase in tourism has positively influenced European economies, popular destinations are once again facing capacity constraints and environmental strain, particularly during peak seasons in 2024,” the ETC added.
“In response to these continued challenges, some countries and cities have been implementing measures to become more resilient to the expected continued rise in tourist volumes. These measures aim to reduce the flow of tourists in concentrated areas, spread tourists out to other destinations across the country and maximise the value they receive from tourism.
“In particular, efforts are being made to promote lesser-known destinations, with the aim of redistributing tourist flows and alleviating pressure on overcrowded hotspots.
“Recent data indicates that arrivals in emerging destinations are increasing, albeit from a smaller base. For instance, Albania has reported a noticeable uptick in visitor numbers, while cities like El Hierro and Sevilla in Spain are experiencing growth that outpaces established tourist destinations like Ibiza and Tenerife.”
ETC president Miguel Sanz said: “The performance of European tourism in 2024 underscores the sector’s resilience and enduring appeal despite economic pressures.
“Travellers continue to prioritise holidays, even in the face of rising costs, highlighting the essential role of travel in their lives.
“Following a busy summer, Europe is actively addressing capacity constraints in popular hotspots by redistributing visitors to more diverse destinations.
“We aim to alleviate the strain on overburdened areas and ensure that the economic benefits of tourism are shared more equitably. European tourism is not just about rebounding; we need to evolve to secure a sustainable future.”