Robust Performance in European Travel Sector in 2024 Driven by Value-for-Money and Off-Peak Season Preferences

• According to the European Travel Commission’s (ETC) latest report, European tourism experienced a 6.3% increase in foreign arrivals and a 6.7% rise in2024 despite economic pressures and evolving consumer behavior. 
• Consumers increasingly opt for value-for-money destinations and off-peak travel, likely due to higher travel costs and a desire to avoid overcrowding.

The European Travel Commission’s (ETC) Q4 2024 report, “European Tourism Trends & Prospects,” indicates a robust performance in the European tourism sector during the autumn and winter period. Despite economic pressures, geopolitical uncertainties, adverse weather conditions, and changing consumer behavior, foreign arrivals rose 6.3% over 2019 levels and 6.7% compared to 2023. Overnight stays also saw growth, with a 5.9% increase over 2019 and a 4.8% rise year-on-year.

The report suggests that higher travel costs and an increased demand for travel have pushed consumers towards more value-for-money destinations. In 2024, tourists spent 7.8% more across Europe than in 2023, equating to €705 billion, with Western Europe driving almost three-quarters of the total regional spend.

ETC President Miguel Sanz noted that despite challenges such as rising travel costs and shifting consumer preferences, Europe’s tourism sector has shown remarkable resilience. Off-season travel is growing in popularity, helping distribute tourism demand more evenly throughout the year.

Tourism performance, in terms of arrivals and overnights, was stronger in the shoulder season (September-October) and into the winter period. This trend aligns with the growing consumer preference for value-for-money travel, as these months typically offer lower prices.

However, not all regions experienced growth. Several Southern and Mediterranean destinations, including Portugal, Serbia, Greece, and Montenegro, saw slower performance in Q4 after a strong summer. In contrast, Iceland recorded a 14% increase in arrivals over 2019, making it the fastest-growing winter tourism destination. Increased solar activity attracting visitors eager to witness the Northern Lights.

Weather events, such as flooding, storms, and snowfalls, impacted travel across Europe, leading to flight delays and cancellations in major hubs like France, Germany, Spain, and the UK. The recovery of long-haul travel, particularly from Asia/Pacific, is still lagging, with final data for 2024 indicating it will remain 5% below 2019 levels. Conversely, US transatlantic travel helped sustain momentum during Europe’s post-pandemic recovery.

In conclusion, the European tourism industry demonstrated resilience and robust performance in the last quarter of 2024. The preference for value-for-money destinations and off-peak travel were significant factors in driving growth. However, challenges such as the slow recovery of long-haul travel and the impact of extreme weather events continue to influence the sector.

Discover more at the European Travel Commission.