Germany recorded €76.3 billion in gross outbound travel bookings in 2025, extending its lead as Europe’s largest outbound travel market. This 5% growth occurred despite two years of GDP contraction, increased geopolitical disruption, and a shift in destination demand as travelers avoided Middle East routes and redirected to Southern Europe.
Phocuswright’s Germany Travel Market Essentials 2026 report states that market growth will be uneven across segments and heavily influenced by geopolitics, pricing, and consumer confidence. The ongoing conflict in Iran is expected to continue suppressing long-haul demand, with more Germans likely to vacation closer to home. Rail-based vacations are a growing trend, particularly for international and city-to-city travel. Deutsche Bahn reported in May 2026 that cross-border passengers in long-distance rail were 30% above 2019 levels, with further increases expected as more European connections open.
Germany is projected to retain its position as Europe’s largest travel market in gross bookings through 2029, supported by continued leisure demand and a preference for higher-quality trips. If the Middle East conflict eases in 2026, industry performance is expected to normalize from 2027 onward, with annual travel growth projected at around 4% in subsequent years.
Digitalization remains a key structural theme in the market. The German Internet Travel Association reports that 77% of trips now include at least one travel service booked online, up from 74% in 2024, and 17% of Germans have used artificial intelligence for travel planning. The market is becoming more digital, price-conscious, and AI-driven, with suppliers using technology to improve conversion and customer engagement.
Distribution remains fragmented and competitive. While online booking continues to gain share, offline channels remain relevant, especially for complex or higher-value trips. Travel agencies continue to play an important role, while online channels expand their reach.
Booking.com and Check24 are expected to remain the dominant online travel agencies, supported by strong consumer recognition and broad product coverage. Check24 benefits from its comparison-platform model and the growing use of digital travel-planning tools, while supplier-direct booking continues to gain importance as operators seek to reduce distribution costs and strengthen customer relationships.
Operators that combine attractive pricing, flexible inventory, and seamless digital customer journeys are expected to have a competitive edge. In a market experiencing structural change rather than spectacular growth, those quickest to adapt to online behavior, AI-enabled planning, and shifting booking preferences are likely to succeed.
All market sizing, projections, and analysis in Phocuswright’s Europe Travel Market Report 2026 series were completed before the full impact of the war in Iran could be assessed. The ultimate effects on European travel markets will depend on the duration of the conflict and other factors.
