Travel continues to be a high priority for Europeans despite soaring energy bills and other cost of living pressures, new research suggests.
Travel is the only discretionary expense that people are prepared to maintain (59%) or increase (16%) spending on in today’s economic climate, according to a study by the European Travel Commission (ETC).
More than half (58%) of respondents plan to travel at least twice, either domestically or internationally, in the coming months.
Planned holiday budgets remain unchanged, showing determination to travel despite financial uncertainty, according to the ETC.
More than a third (37%) of Europeans will still spend between €1,000-€2,000 per person per trip for their next holiday, up 6% from a year ago. An additional 19% will spend more, exceeding the €2,000 mark.
Most European travellers (77%) intend to take a trip during the first six months of 2023 – a 16% increased compared to last year’s figures.
They are also showing a growing desire to travel outside their own country, with 63% of respondents now favouring international trips within Europe. This accounts for growth of 13% in a year.
But rising travel costs worry 23% of Europeans, while an additional 18% say that their personal finances and economic situation are preoccupying.
Travellers are responding to the financial challenges with a more proactive and flexible purchase behaviour.
People are booking trips earlier than a year ago – 44% have already fully or partially booked their next holiday, a 7% increase over 2022.
Attractive deals and bargains (17%) are of key concern, second only to good weather (18%).
Most respondents plan to reduce their shopping at the destination (18%), book less expensive accommodation (16%) and choose more affordable restaurants (15%) to fit into their holiday budget.
Purchasing all-inclusive packages and visiting fewer attractions with an entrance fee are also considered by 12% and 10% of respondents, respectively.
The outlook is not bright for retail spending on items such as electronics and clothing, as well as leisure and recreation purchases for concerts, dining out, and sports.
Less than half of people (47%) plan to spend the same amount in these categories, while only 8% consider increasing their expenses.
ETC president Luís Araujo said: “The recent figures show that travel remains a top priority for Europeans in the first half of 2023. This is welcome news, especially considering much of the intended travel is planned within Europe.
“These trends paint a hopeful picture for the sector this year, and prove its resilience in the face of global economic challenges.
“Now, to capitalise on consumer confidence and early bookings, the industry should closely follow and anticipate shifts in consumer needs and tailor its offers accordingly.”