The European Travel Commission’s Q3 2025 report indicates a 9.9% projected increase in traveller spending across Europe, with international arrivals rising 3% year-on-year.
Europe’s tourism sector demonstrated resilience over the summer of 2025, with international arrivals increasing by 3% compared to the previous year, according to the European Travel Commission’s quarterly report. Despite higher costs and heatwaves, travellers continued to visit European destinations, contributing to a projected 9.9% rise in traveller spending for the year.
The report highlights that travel-related inflation is easing, and tourism expenditure is expected to account for 3.1% of total consumer spending in Europe, surpassing both last year’s share and the average from 2010 to 2019. This growth underscores the continued appeal of Europe as a travel destination.
Performance varied across the continent, with 30 out of 34 reporting countries experiencing increases in arrivals or overnight stays. Southern Mediterranean countries such as Malta, Cyprus, Spain, and Portugal saw significant growth, driven by sun-and-beach tourism. Northern European destinations, such as Norway and Iceland, also attracted visitors seeking cooler climates, while Central and Eastern European countries, including Poland and Hungary, benefited from competitive pricing.
In contrast, Germany and Türkiye experienced slight declines in arrivals, attributed to post-event effects in the former and cost increases in the latter. Overall, the data reflects the resilience and diversity of Europe’s tourism landscape.
The report also notes evolving consumer habits, with 28% of travellers from key source markets planning to adjust their travel months to avoid crowds, save money, and escape extreme heat. The use of digital tools, particularly artificial intelligence (AI), in travel planning has increased, with 18% of travellers utilizing AI to find better deals and plan trips outside peak times. This trend is most pronounced among Gen-Z and Millennials, with the highest adoption rates in China and the United States.
Value for money remains a crucial factor for travellers, as price inflation for tourism services persists above pre-pandemic levels. This has led to increased competition among destinations and a shift towards more affordable travel options. Central and Eastern European countries have seen the most benefit from this trend.
Long-haul travel to Europe is recovering, with significant increases in arrivals from Japan and China, though volumes remain below pre-pandemic levels. Travel from the United States continues to grow, contributing to a cumulative 35% increase above pre-pandemic levels. However, potential disruptions from U.S. trade policies pose a risk to future international travel.
Despite global economic challenges, Europe’s tourism outlook remains positive. The report forecasts a 6.8% increase in international arrivals in 2026, driven by a recovery in long-haul markets, particularly from the Asia-Pacific region. Travellers are prioritizing holidays in their spending and increasingly using technology to optimize travel plans, indicating a stable future for Europe’s tourism sector.
Download the European Tourism 2025 – Trends & Prospects (Q3/2025) report.
