Economic Pressures Shape Travel Choices in Germany, Sustainability Takes a Back Seat

The Germany travel market looks set for a strong summer in 2025. While there continues to be a difficult economy and the quality is getting higher, the market is cost bites hard. This comes as holidaymakers are less in tune with environmental issues.

Economic Environment and Travelling Patterns

The world economy in 2025 is characterized by protectionist trade wars, tariffs and low growth, and a general climate of uncertainty and stasis pervades and envelops the world economy. But German consumers’ faith in travel is not waning. According to the German Travel Association (DRV), in 2025 Germans will spend to the tune of 85 billion euros for pre-holiday travel services, 6% more than last year. An even stronger growth is expected in the demand for structured travel, package and customized trips, which is projected to grow to 40 billion euros.

Trending Destinations and Consumer Interest

Traditional warm-weather destinations, such as Turkey, Spain and Greece, have continued to lure German travelers despite economic and geopolitical challenges. Turkey is still the most popular industry destination because of its all inclusive side. The DRV points out that “travel is at the top of the list for the Germans” confirming that despite tight money, holidays are too important to forgo.

Effect of Economic Situation on Booking Decisions

In this price-increasing travel world, more and more Germans book more often value-conscious. Destinations like Egypt, Tunisia, and Bulgaria are gaining popularity because of the lower price tags. According to the ADAC Travel Monitor, for one in three (34 per cent) Germans savings is the top priority for summer holidays due to financial necessity.

Economy Versus Ecology

As travel budgets are scaled back, sustainability is getting pushed to the back burner when it comes to travel planning. Just 20% of Germans are willing to spend more for sustainable travel. Climate change and natural disasters are a concern for some traveler planning, but the concern is not significantly shifting overall booking patterns. We are increasingly experiencing an attitude behavior gap which has been observed globally, where cost and destination attractiveness are more important than the growing knowledge of environmental issues in decision making.

Industry Responsibility and Prospects

The travel sector is at a crossroads, forced to reconcile what the consumer wants with doing what’s right for the planet. However, as Professor Heinz-Dieter Quack highlights, tour operators must be the ones to lead the way in promoting sustainability and incorporating it in their product lines and marketing plans. The sector also has to use the digital possibilities to tackle problems such as overtourism as well as the possible restrictive actions to sustainability of travel destinations.

In 2025, the German travel market is weathering the storm and demanding cheap holiday alternatives, despite sustainability concerns. This is a clarion call for the travel industry to embrace innovation and, possibly, a re-imagination of how to better integrate sustainability into its offerings.

Discover more at ITB Berlin.