Europe’s tourism industry started 2025 with solid growth and more attention from international travelers. Short-term stay bookings rose sharply in the first quarter.
At the same time, the European Union (EU) invested €2.8 billion in 94 transport projects to improve sustainable and connected travel across Europe.
Consumer demand powers stable growth
Europe’s tourism sector stayed strong in the second quarter of 2025, according to the European Travel Commission (ETC). International arrivals rose by 3.3% compared to the same time last year, helped by growing global interest and changing travel seasons.
Overnight stays fell by 0.7%, but analysts link this to a later Easter, not weaker demand.
This small drop was balanced by more off-season travel. Searches for spring trips by European tourists went up 36% from last year.
Beach spots like Malta and Cyprus saw big jumps in visitors, 19% and 16%, respectively.
Online bookings surge as travelers plan ahead
Meanwhile, Eurostat reported that tourism data from Q1 2025 shows a continued digital shift. Guests booked 129.6 million nights through platforms such as Airbnb, Booking.com, and Expedia, representing a 4.8% increase from the same quarter in 2024 and a 34.5% rise from 2023.
January and February saw double-digit growth — 16.3% and 11.6% respectively — but March recorded an 8.6% decline. The drop again reflected Easter’s shift from March to April, underscoring how holidays impact travel habits.
Short-term rentals, hotels battle for travelers
In a separate report, Eurostat revealed that hotels remained the most popular accommodation, hosting 72.2% of tourism nights in Q1 2025.
However, short-term rentals held strong, particularly those booked online. While hotel nights decreased slightly by 0.3%, holiday rentals experienced a 0.4% decline.
Airbnb-style bookings continued to thrive, particularly in tourist hotspots. Andalucía led the way in Q4 2024 with 8.7 million guest nights, followed by Canarias (7.6 million) and Île-de-France (7.2 million).
Spending climbs despite price pressures
The ETC found that travel costs haven’t stopped people from traveling. Tourists now spend more per trip, with total travel spending expected to grow 13% in 2025 compared to last year.
This increase outpaces the rate of tourist arrivals, showing that travelers are willing to pay more, especially when visiting during off-peak months.
Flights to southern Europe increased in cost by 5%, and package holidays rose by 7%. Yet destinations like Spain, Malta, and Cyprus reported higher revenues, signaling that demand remains firm even with inflation.
Central, Eastern Europe draws new attention
Countries such as Latvia, Lithuania, and Hungary experienced a year-on-year increase in tourism of more than 14%. Improved connectivity helped drive this surge, as travelers sought affordable, culturally rich alternatives to traditional Western destinations.
Poland also stood out, gaining 9.6% more nights compared to the same period in 2024, the second-largest increase in absolute numbers after Spain.
U.S., China visitors return in force
International travel to Europe increased by 1.1% in Q1 2025, despite economic and geopolitical uncertainty. Notably, tourists from the United States flocked to Nordic destinations.
Norway and Denmark posted massive increases in overnight stays — 35% and 24%, respectively,
Chinese tourism, which lagged during the pandemic, is rebounding. Croatia, Estonia, and Romania saw a noticeable uptick in Chinese arrivals.
Rising incomes, improved air connections, and favorable policies are drawing Chinese tourists back, especially as concerns over US travel prompt them to turn to Europe.
Strategic transport projects to strengthen tourism flows
To support this tourism momentum, the European Commission approved €2.8 billion in funding for 94 transport infrastructure projects under the Connecting Europe Facility (CEF).
Railways will receive 77% of this funding, enhancing cross-border travel and improving accessibility in key regions, including the Baltic states, Greece, and Poland.
Cities like Nice, Leuven, and Bolzano will upgrade multimodal passenger hubs to improve urban mobility. At the same time, greener ports and smart traffic systems will help reduce emissions and ease congestion.
Sustainability, seasonality shape future
ETC President Miguel Sanz stressed the need for smarter, more inclusive tourism:
“To sustain this momentum, we must double down on innovation and invest in more sustainable, inclusive models of tourism that respond to locals’ needs and visitors’ expectations.”
Travelers now favor off-peak trips to avoid summer heat and crowds. The trend reflects a shift from quantity to quality — travelers seek meaningful, less chaotic experiences, and destinations adapt to spread tourism more evenly year-round.
Influence on visitor expectations
International arrivals are rising, and online bookings for guest stays are growing fast, keeping Europe’s tourism outlook strong even as prices climb.
Travelers, whether staying short- or long-term, are starting to explore less popular and more affordable places, often during off-peak times.
These shifts may support the rollout of the upcoming European Travel Information and Authorization System (ETIAS) by promoting better trip planning and demand tracking.
Along with Schengen visa rules, growing interest from China and the U.S. highlights the need for simple and reliable travel approval systems.
Pressure points in migrant-heavy regions
International tourism grew in Q1 2025, but domestic travel dropped. Countries like Germany and Ireland, which have large migrant populations, saw fewer overnight stays.
As tourists focus on certain areas, migrants working in hospitality may deal with unstable or seasonal jobs.
At the same time, the rise in online bookings and uneven tourism demand across regions could make housing harder to find in cities where many migrants live, raising the risk of displacement or higher living costs.
Policy shift toward balanced mobility
The EU’s funding for 94 transport projects shows a stronger focus on better cross-border access and system reliability. This effort also supports immigration policy by improving routes for legal migration and closer border ties, especially with Ukraine and Moldova.
Upgrading cities and rail connections supports broader goals for safe, well-managed travel and may also help future asylum reforms by improving how the EU handles both voluntary and forced migration.
A stronger, smarter future
As Europe deals with changing seasons and higher costs, strong demand, more online bookings, and transport investments are helping the tourism sector recover and change.
With a focus on new ideas and eco-friendly travel, the future of tourism in Europe is not just about the destination, but also the way and reason people choose to travel.