Europe’s travel sector stayed strong this summer, growing steadily in the third quarter despite rising travel costs.

The European Travel Commission’s (ETC) recent report shows a 7% increase in international visitors from last year, with overnight stays up 5%. This growth shows that, despite financial challenges, people continue to make travel a priority in Europe.

Travelers adjusting to higher costs

Although inflation has slowed, prices for services like hotels and vacation packages are still high. Airfares dropped at the start of summer but went up again in August, pushing travelers to watch their budgets.

This year, tourists have chosen value-focused experiences and prioritized affordable options. The ETC predicts that tourist spending in Europe will rise by 10.3% by the end of the year, reaching €719.7 billion, with most of this spending in Western Europe.

This trend shows that travelers are willing to spend despite higher costs.

Demand grows in Mediterranean destinations

Southern Mediterranean Europe saw the most growth, especially in Serbia (34%) and Malta (32%), which attracted attention from their smaller travel markets.

Portugal and Greece also reported a 19% rise in arrivals, while Türkiye saw a slight drop as travelers chose more budget-friendly Mediterranean options.

This growth shows a shift toward affordable travel, with tourists seeking destinations that offer good value.

In contrast, the Baltics, Finland, Romania, and Slovakia are still below pre-2019 visitor levels.

However, year-on-year data shows improvement in these areas. Romania, Latvia, and Estonia each saw over 10% growth in foreign arrivals this year, hinting at recovery in Eastern Europe.

Air travel holds steady amid disruptions

The report shows a 3.4% rise in air travel demand despite delays from strikes and cybersecurity issues. Nearly 40% of passengers faced delays or cancellations this summer, putting pressure on airlines and airports across Europe.

Revenue per available room (RevPAR) in European hotels increased by 5.9% compared to last year.

Southern Europe saw the biggest growth in daily hotel rates as high demand outpaced rising prices, indicating that travelers are willing to pay for comfort during peak seasons. Short-term rentals also grew by 11%, mainly due to demand in France and Italy.

Addressing overcrowding with strategic planning

The ETC report also highlights concerns about overcrowding in popular areas, which strains infrastructure and the environment.

High visitor numbers during peak season show the need for better crowd management, especially as some destinations reach capacity limits.

Efforts to spread tourism across regions by promoting lesser-known spots are showing positive results.

For instance, places like El Hierro in Spain saw more growth than well-known destinations like Ibiza and Tenerife, indicating success in encouraging visitors to explore emerging locations.

Drawing visitors, migrants with enhanced travel, visa policies

The tourism boom impacts short-term visitors, long-term travelers, and migrants looking at Europe.

The soon-to-launch European Travel Information and Authorization System (ETIAS) aims to simplify entry for many visitors, making travel smoother.

At the same time, changes to Schengen visas may affect how easily travelers can access some countries, with policies increasingly focused on managing the growing numbers.

High demand for Mediterranean destinations shows how visitors balance costs with cultural exploration, while shifts in tourism may guide travelers away from crowded spots toward quieter areas.

Policy shifts for sustainable tourism

As tourism costs continue to rise, many European Union (EU) countries are re-evaluating policies to support sustainable tourism.

Officials in popular destinations are looking for ways to protect local ecosystems and infrastructure, aiming to balance economic gains with environmental care.

By directing tourists to lesser-known areas, European governments can ease crowding in busy spots like Barcelona and Venice while helping rural and less-visited regions. 

Future travel policies might include stricter visitor limits during peak seasons and incentives for visiting less crowded places.

Moving toward a balanced future

As travel in Europe stays strong, the region faces a challenge: meeting demand while promoting sustainable tourism. This quarter’s report shows that travelers’ continued interest has boosted Europe’s tourism sector, despite economic uncertainties.

Going forward, Europe’s efforts to spread tourism more evenly across regions may offer more varied experiences, helping protect popular spots while welcoming visitors to new areas.