european travel market size

Statistics and reports

The European Commission supports policymakers and stakeholders in developing better strategies for a more resilient European tourism ecosystem by gathering information and analysis on performance and trends in the sector. 

EU tourism dashboard 

The  EU tourism dashboard  is an online knowledge tool aimed at monitoring the  green and digital transitions   of the tourism ecosystem to make tourism more resilient and sustainable. 

The dashboard visualises tourism-relevant data and indicators collected from available, trusted sources covering the tourism ecosystem. It offers snapshot views of key tourism indicators for the European Union and each member country. 

Eurobarometer surveys 

Flash  Eurobarometer surveys  reveal the preferences and attitudes of Europeans towards tourism. The Eurobarometer surveys offer a portrait of the current situation and an outlook for the upcoming seasons.

Studies and reports 

An online repository is available for reports, studies and papers relevant to tourism policymakers and stakeholders. A user-friendly tool allows the library to be searched by country, theme or year of publication. This section offers access to relevant publications of the Directorate-General for the Internal Market, Industry, Entrepreneurship and SMEs, and the Commission, as well as to a wide range of works published by other institutions, international organisations, EU countries and academia.

More information

• Eurostat’s official tourism statistics
• Eurostat’s visualisation of key tourism statistics
• All Eurobarometer surveys referring to tourism

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Growth in Market Size of Travel and Tourism in Europe (2018-2021, by %) Share Share on Twitter Share on LinkedIn Industry: Travel services Current: Market Sizing & Shares The market size of the travel and tourism sector in Europe reached a value of $127 billion in 2021 The travel and tourism market in Europe grew by 16% in 2021 The travel and tourism market in Europe grew at a CAGR of negative 15% during 2017-2021 Travel and Tourism in Europe: Industry Overview

Travel and Tourism is one of the key sectors that play a pivotal role in any country’s economy and make a significant contribution to the country’s GDP. The global growth in travel and tourism activities has led to the rise of travel intermediaries, making them an important part of selling travel products to customers.

The market size of the travel and tourism sector in Europe reached a value of $127 billion in 2021, with 43% contribution from the in-store sector and the remaining 57% from the online sector. In recent years, the rise in the number of online travel intermediaries was aided by the growth in the number of internet users along with the demand for convenience among travelers further supported the rise in the market for online travel Intermediaries.

Even though there has been a rise in the number of online travel intermediaries, in-store travel still has its relevance and has been growing steadily for the past few years as it provides a sense of security, especially for the elderly who are generally skeptical of the usage of online platforms.

The travel and tourism market in Europe grew by 16% in 2021 with in-store growth of 12% and online growth of 19%, as the sector witnessed a recovery in the demand after easing the restrictions which were placed on account of the outbreak of the COVID-19 pandemic and travel intermediaries’ sharp rise in travel products as the consumers planned their travel activities after the gap of almost two years.

Meanwhile, the growth which the travel and tourism sector was going to see was reversed with the pandemic which completely devastated the industry in 2020. During the year 2020, the market value of the travel sector in the Europe region saw a de-growth of a huge 59%, accounting for $159 billion.

France, Amsterdam, Milan, Berlin, and the UK rank as the top travel destinations in Europe among the plethora of options the region provides to choose from.

The travel and tourism market in Europe grew at a CAGR of negative 15% during the period 2017-2021. The global travel industry along with its allied sectors saw a slump in market value with the pandemic in 2020. Before 2020, the industry was also witnessing slow but steady growth due to low economic growth.

The major companies that have a strong presence in the travel market in Europe include Booking Holding Inc,  Expedia , Czechia, TravelPerk, and Topdeck Travel Ltd. among others.

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What is the demand for outbound tourism on the European market?

Global outbound tourism continues to recover well, reaching 84% of pre-pandemic levels by the end of July 2023. Germany and the UK are the largest European markets, and demand for outbound travel from these markets is high. Africa and Asia are the most visited regions by Europeans, and Turkey is the most popular destination by some margin. Europeans want to enjoy a wide variety of travel experiences. These include culture, wellness, food tourism, nature tourism and ecotourism, walking and hiking, and community-based tourism (CBT). In developing destinations, Europeans often look for adventure tourism.

Contents of this page

• What makes Europe an interesting market to target?
• Which European markets offer the most opportunities for tourism suppliers in developing countries?
• Which tourism products from developing countries are most in demand in European markets?

1. What makes Europe an interesting market to target?

Europe is an interesting market to target because it is the largest outbound travel market. As the tourism sector continues its recovery, Europe and the Middle East are bouncing back most quickly. The industry expectation is that tourism will recover to 2019 levels by the end of 2024 or 2025, although this will vary from region to region. Challenges to the sector’s recovery include the state of the global economy and the impact of economic developments on personal travel budgets, as well as the ongoing war in Ukraine, which continues to create uncertainty. Longer term, sustainability remains a challenge as the sector strives to meet global net-zero commitments by 2050.

Current status of worldwide tourism after the pandemic

Tourism is proving to be a highly resilient global industry. The sector is on track for a full recovery, with arrivals reaching 84% of pre-pandemic levels between January and July 2023 and 90% in July 2023. Around 700 million tourists travelled internationally between January and July 2023. This is roughly 43% more than in the same months in 2022.

Table 1: Worldwide tourism arrivals in 2022 and Q1-Q2 2023 compared to 2019

Source: UNWTO

• The Middle East witnessed the strongest performance between January and July 2023. Arrivals were 20.3% higher than those reported for the same period in 2019. In Q1 2023, the region already saw a 15% increase in arrivals compared to the same quarter in 2019, making it the first to achieve pre-pandemic numbers in a full quarter.
• Arrivals to Europe reached 91% of pre-pandemic levels by the end of July 2023. Recovery was mostly driven by strong intra-regional demand: Europeans preferred to visit neighbouring European countries over long-haul destinations. The Southern Mediterranean region exceeded pre-pandemic levels by 1%.
• Africa also performed strongly, witnessing a return to 92% of pre-pandemic levels. The North Africa subregion in particular exceeded pre-pandemic levels in the first half of 2023 (+8%).
• The Central America subregion also performed strongly in the first seven months of 2023, exceeding pre-pandemic levels by 1.7%. The region was quicker to open up to international tourism following the pandemic, which stimulated faster growth.
• South America recovered to 89% of pre-pandemic levels, led by strong performers such as Colombia, where arrivals are already exceeding 2019 levels.
• Asia was the slowest growing region, recovering to 61% of pre-pandemic levels. Many countries in this region opened up more slowly – China did not reopen its borders to international tourism until March 2023. South Asia, however, enjoyed a stronger recovery (93%) than other Asian subregions.

By destination, several countries exceeded arrivals recorded between January and July 2019, with some even enjoying double-digit growth. Many of these high performers were European countries, including Albania (56%), Andorra (31%), Armenia (31%), Liechtenstein (19%), Serbia (17%), Montenegro (14%) and Iceland (13%). Outside Europe, many developing destinations also saw unprecedented growth in the first quarter of 2023. Arrivals in these countries were much higher than in 2019, as can be seen in the table below.

Figures from the International Air Transport Association also show a strong recovery post-pandemic. By the end of May 2023, global air traffic revenues had recovered to 96% of pre-pandemic levels . Passenger numbers were back at 88%.

Future projections and challenges

The state of global tourism mid-2023 is cause for optimism, and current projections indicate that recovery will continue. International tourism is expected to remain on track to recover to between 80% and 95% of pre-pandemic levels, depending on the region. There is also growing confidence that international tourism will fully recover – to pre-pandemic levels – by the end of 2024. However, this will also vary from region to region.

In October 2023, the International Monetary Fund (IMF) predicted that the global economy would grow by 3% in 2023 , an increase of 0.2%. Growth is expected to be driven partly by increased travel after the pandemic, as well as by a strong jobs market and services sector. Still, challenges to this growth remain.

Downturns or slow growth in some of the world’s largest economies, including the US, Europe and China, may have a negative impact on tourism performance at a macro level. At a more local level, there are high consumer prices, high inflation and high interest rates, which continue to dent consumer confidence.

Driven by the war in Ukraine, which has pushed up prices, the cost-of-living crisis has affected many countries, including developed nations. The soaring costs of food and energy, along with high inflation rates, are negatively affecting consumer budgets. Other factors that are limiting growth are travel disruptions caused by staff shortages and industry disputes in the travel and transportation sector. These continue to play a role in several destinations.

Besides the war in Ukraine, there are other geopolitical tensions as well. The relationship between NATO and Russia is strained, for instance, as is the one between the US and China. These tensions could also threaten the recovery of the tourism industry. Safety and security are becoming more and more important as tourists actively assess any potential threats to their own personal safety while travelling.

• Stay up to date on global, regional and national issues that might have an impact on your local tourism sector. Having a good understanding of these issues will help you reassure your buyers if they have concerns. Be sure to take appropriate action to address issues if necessary.
• Use the CBI study How to manage risks in tourism to keep your risk management policy up to date. Although the pandemic is officially over, other risks remain.

Sustainability requirements

At a macro level, switching to sustainable business practices to fight climate change has never been more important. Net-zero targets have been adopted by 97 countries , including the EU’s 27 member states and the UK. At a micro level, tourists are increasingly concerned about their negative impact on the planet, people and places. Europeans are becoming more eco-conscious and expect tourism businesses to be sustainable. They also want to see evidence that their actions are not damaging the places they visit.

The EU Green Deal was launched in 2019 and involves a series of sustainability measures. The goal of these measures is to help Europe become the first climate-neutral continent by 2050. This will have an impact on European tour operators, who will have to meet certain sustainability standards. These standards will also apply to their partners, including local tour operators.

• To find out how to make your business sustainable, read the CBI study How to be a sustainable tourism business .

Analysis of outbound tourism volumes from Europe

Europe is the largest source market for outbound tourism, making it an interesting region to target. In 2019, there were 743.9 million international tourist arrivals from Europe (UNWTO). These accounted for just over one half (51%) of global outbound tourism (1.465 billion international arrivals).

By 2022, the share of international arrivals from Europe had risen to 62% of global outbound tourism, reaching 595 million (80% of the 2019 level). This share may decrease again as tourism returns to normal levels. Still, it remains a good indicator of the strength of the European market. Air passenger traffic also shows that Europe is recovering well from the pandemic. By Q3 2022, it had already recovered to 86% of the 2019 level.

Source: Eurostat

An analysis of travel data reveals that Europeans predominantly visit European destinations. Of 1.1 billion trips taken by European nationals in 2019, 96.3% were to European countries, according to Eurostat. This means that 33.8 million trips were taken to destinations outside Europe. These figures are not surprising. Most Europeans prefer short-haul destinations, and there are many neighbouring countries with excellent tourist attractions that are easily accessible and familiar to European nationals.

But many Europeans also like to explore the rest of the world. Before the pandemic, demand for travel to developing destinations was increasing, and exciting experiences, transformative travel and nature-based travel were becoming more and more popular. This means that there are lots of opportunities for local tour operators to reach this large outbound tourism market.

Asia and Africa are the most popular destinations for trips outside Europe, accounting for 44.3% and 35.1% of trips in 2019 respectively. Central and South America accounted for 16.2% of trips.

The most popular destinations for Europeans have remained the same for many years. Turkey, Egypt, Thailand and Morocco are the countries with the highest number of visitors from the key source markets. Turkey, Egypt and Morocco are medium-haul destinations. They are relatively easily accessible by Europeans from all over the continent and are well served by air, including by low cost carriers (LCCs). These destinations appeal to all kinds of visitors, from budget to luxury tourists.

Thailand is a long-haul destination, but it has drawn European nationals for many years. It offers world-class attractions and extraordinary natural environments, and has a reputation as a good value destination. Like Turkey, Egypt and Morocco, it also has a favourable, warm climate that appeals to Europeans.

In 2019, 33.5 million Europeans travelled to Turkey, making it the top destination by a wide margin. Egypt was the second most visited destination (8.4 million), followed by Thailand (7 million). Turkey was also quicker to recover after the pandemic, welcoming a significant number of visitors in both 2020 and 2021.

Further analysis of arrivals to top developing destinations from key source markets shows that tourists from different European countries prefer different destinations. For instance, the table below shows that in 2019:

• The top destinations for German holidaymakers were Turkey (5 million arrivals) and Egypt (1.7 million).
• British tourists preferred Turkey (2.5 million) and Thailand (1 million).
• French tourists mostly travelled to Morocco (2 million) and Turkey (0.9 million).
• Spanish tourists also preferred Morocco (0.9 million), as well as Mexico (0.4 million).

Language is clearly a factor when it comes to these preferences. Morocco has a high proportion of French speakers, while the national language of Mexico is Spanish. These factors are more fully explored in the section below, Which European markets offer the most opportunities for tourism suppliers in developing countries ?

Analysis of global and European value of tourism

International tourism expenditure was €1,335 billion in 2019 . After collapsing to roughly a third of the 2019 level in 2020, by 2022 expenditure had recovered to €979 billion, 69% of the pre-pandemic level. Europe accounted for the largest share of global spending in 2022, at 53%.

European countries are big spenders when it comes to outbound tourism. There are six major European markets in the top 15 countries by outbound expenditure, and Germany, the UK and France are the top spending markets after the US and China. Moreover, tourists from Germany, the UK and France spent almost as much in 2022 as they did in 2019, which shows that these markets are on track to make a full recovery.

Table 2: International tourism expenditure by top source markets, 2019 and 2022

Source: UNWTO; *ONS

Outside the top 15, Switzerland, Belgium and Norway are the biggest European outbound tourism spenders, making them interesting markets to target.

• Continue to monitor tourism recovery trends and patterns in your target markets. Google Trends and Looker Studio (previously Data Studio) have a range of free online tools for this. Google Trends shows the popularity of top Google search queries, while Looker Studio creates graphs, charts and tables to help visualise this data. CBI has created several Data Studio Dashboards to help you understand demand and recovery in the biggest outbound markets.
• Read the study How to forecast tourism demand with Google Trends & Data Studio? for more information, and watch the video on how to use the dashboard .

2. Which European markets offer the most opportunities for tourism suppliers in developing countries?

The European markets that offer the most opportunities for tourism suppliers in developing countries are Germany, the UK, Italy, France, the Netherlands and Spain. These are the largest outbound overnight tourism markets from Europe. Please note that the UK figures in the chart below also include day visitors.

Sources: UNWTO; OECD (Germany, 2021); ONS (UK)

Research conducted by CBI in 2022 indicates that these source markets have a high preference for travel to developing countries. It is also interesting to note that there was a greater intention to travel to developing countries in the next 12 months, particularly amongst British, Spanish, Italian and French nationals.

Table 3: Europeans’ travel plans in the next 12 months, 2022

Source: CBI

Germany has a population of 83 million, the largest of any European country. It also has the largest economy in Europe and the fourth largest in the world. Germans enjoy a high standard of living. Like most of Europe at the beginning of 2023, Germany was affected by high energy costs as a result of the war in Ukraine, and by rising inflation. These factors led to low consumer confidence, which affected consumer spending.

The German economy is strong, but there are still uncertainties about economic growth, consumer confidence and the longer-term outlook. (It should be noted that these uncertainties are not unique to Germany, but also exist in other European countries.) In September 2023, it was reported that the German economy had stagnated in Q2 2023 and was forecast to shrink by 0.4% for the year. Inflation is expected to fall to 6.4% in 2023 and to 2.8% in 2024. Looking ahead, the German economy is forecast to grow by 1.1% in 2024.

German outbound travel market

Germany is Europe’s largest outbound travel market. In 2019, German nationals made 99.5 million overnight trips. The market is also predicted to grow over the next 10 years. In 2022, Germany’s outbound tourism market was valued at US$95.3 billion , and it is projected to grow to US$241.4 billion by 2032. This represents a compound annual growth rate (CAGR) of 9.7% during the forecast period. Germans are keen travellers and Germany is likely to be one of the first European outbound tourism markets to recover fully from the pandemic.

In 2022, Reise Analyse reported that German nationals took 67.1 million holiday trips of 5+ nights . Of these trips, 73% were to international destinations (49.0 million), only slightly less than in 2019. 2022 was a record year for holiday travel expenditure, with German tourists spending €80.1 billion, €7 billion more than in 2019.

Figure 7: Volume of German holiday travel in 2022

Source: Reise Analyse

Germans like to travel to a variety of destinations, both domestically (27% of all trips) and internationally (73%). Europe is the top destination for German tourists (57%); long-haul destinations account for just 6%. Turkey is the most popular developing destination for German tourists, representing 7.9% of all outbound trips in 2022, a 1.6% increase on 2021. Turkey is conveniently located and well served by a range of scheduled, charter and LCC flights.

Egypt, Thailand, Morocco and South Africa are also popular with German tourists, although German arrivals to these destinations have not fully recovered yet. Before and (to some extent) after the pandemic, other popular destinations for German tourists have included Vietnam, Sri Lanka and Namibia. German is still spoken in in certain areas of Namibia, which adds to its appeal.

German travel behaviour

According to Reise Analyse, the average length of stay in 2022 was 12.6 days, slightly longer than in 2019 (12.4 days). Average spending per trip also increased, from €1,032 in 2019 to €1,194 in 2022. Additional research found that German tourists spent more than one third of their budget on accommodation (35.6%), more than any of the other source markets. This was followed by flights and other transport (23.9%). Activities accounted for 12.8% of German budgets, more than any other source market except France.

Germans like to book package holidays, more than other European tourists. In the past, they preferred to book directly with travel agents. However, they are increasingly booking their holidays online (49.6%, an increase of 5.6% percentage points). At the same time, face-to-face bookings are falling (36.1%, a decrease of 2.9% percentage points).

German characteristics and travel motivations

Germans are particularly motivated by a desire to experience nature. They enjoy beautiful scenery and wildlife, and going to the beach is a popular activity. They also like to stay active – walking/hiking and cycling are important pastimes. Culture is important to them as well, and visiting cities, shopping and enjoying local food and wine are key activities that appeal to German tourists.

Like many Europeans, German tourists care about sustainability, and they are increasingly looking to minimise their travel impact. Research conducted by the EU in 2021 found that amongst German tourists:

• 54% would choose to consume locally sourced products while on holiday.
• 47% would be prepared to pay to protect the natural environment.
• 45% planned to reduce waste while on holiday.
• 43% would travel to less visited destinations.

United Kingdom

The UK has a large population of 67.3 million, as well as the second largest European economy. Because the British economy is largely service-driven, it contracted more sharply during the pandemic. Although GDP grew by 4% in 2022, it has fallen since then, and the economy is expected to be weak in 2023 and 2024 . Inflation and interest rates remain higher than in many other European countries. This directly contributes to the current cost-of-living crisis, which in turn has a negative impact on consumer confidence.

British outbound travel market

The UK is the second largest outbound tourism market in Europe, and British tourists made more than 93 million outbound trips in 2019. Since the end of the pandemic, demand for travel has been very high. In 2022, British nationals took 71 million trips, 76% of the 2019 level. It is most likely that outbound tourism from the UK will recover in 2024 or later, depending on the state of the economy and the spending power of British tourists. An optimistic projection from 2022 suggested that outbound tourism would reach 86.9 million trips by 2024 .

The future outlook for outbound tourism from the UK is positive, despite economic difficulties. The UK’s outbound travel market was estimated to be worth US$76.7 billion in 2022 and is projected to reach US$175.2 billion by 2032, growing at a CAGR of 8.6% during the forecast period. However, continued economic uncertainties may affect tourism’s recovery. Affordability is now a major criterion for British tourists in deciding where to go on holiday. British tourists spent £62.3 billion abroad in 2019, and £58.5 billion in 2022 (94% of the 2019 level).

Britons are very keen tourists, and they travel to a diverse range of countries. Compared to the other key source markets, British tourists are most likely to visit developing destinations. Turkey has consistently been the most popular long-haul destination for British tourists for many years, followed by India. India and many African countries like Kenya and Tanzania are traditionally popular destinations for UK nationals, owing to historical ties.

The table below clearly shows that UK arrivals to developing destinations are beginning to recover. In 2022, arrivals to Turkey, Mexico, Nigeria and Egypt surpassed those in 2019, showing robust demand for overseas tourism from the UK.

Source: ONS

British travel behaviour

In 2022, British tourists stayed for an average of 8.7 nights while on holiday, 6.9 nights when travelling for business and 17.1 nights when visiting friends or relatives. In 2019, the average spend per holiday trip was £739, compared to £697 per business trip. By 2022, average expenditure had risen to £887 for a holiday trip and £1,070 for a business trip – an increase of 20% and 46% respectively.

Britons spend almost a third of their travel budget on flights and transport, over a quarter (28.3%) on accommodation and almost a fifth (19.8%) on food and drink. Tourists from the UK spend the least on accommodation compared to other source markets.

A 2022 study found that online travel agencies (OTAs) were the preferred booking method for British tourists (39%), followed by booking accommodation and flights separately (26%). Tour operator bookings accounted for 16%.

British characteristics and travel motivations

Travel is important to UK nationals and they are experienced overseas tourists. Visiting other countries allows them to escape their daily routine, recharge and have new experiences. While they like immersive experiences, hygiene, accessibility, convenience and safety are still important to them. British tourists also like to take part in activities, which is one of the top factors influencing their final decision. Common activities include visiting natural attractions and wildlife watching.

In 2023, Mintel conducted a study on British holiday intentions in the next 12 months. It found that:

• A summer beach holiday was the most popular planned holiday (47%).
• City breaks were the second most popular (45%).
• 35% were planning a family holiday.
• 23% intended to go on a cultural and historical sightseeing holiday.

British tourists are very sustainability minded. In a recent survey, 86% of British respondents stated that sustainability was important to them . Amongst the 18-24 age group, this figure rises to 95%; in the 65+ age group, it is 75%. Other research revealed that 32% of British travellers avoid flying altogether on account of environmental concerns, and 62% would use more sustainable forms of transport (such as trains) if they were cheaper. Busy destinations are avoided by 59%, who are more interested in travelling to lesser-known places.

All in all, sustainable destinations are more likely to attract British tourists.

Italy has a population of 60.2 million, the fifth largest in Europe. Its economy – the eighth largest in the world – grew by 3.9% in 2022, driven by domestic demand. This growth is expected to slow down in 2023, however, as a result of high inflation. Most Italians are well educated and enjoy a high standard of living. They tend to speak English to a good level, but appreciate information being made available in Italian.

Italian outbound travel market

Italian tourists made 34.7 million outbound trips in 2019. In 2021, they made 12.4 million outbound trips; this figure rose to 25.1 million in 2022, reaching around 72% of the 2019 level. By the end of May 2023, outbound travel was at 88% compared to 2022, suggesting that recovery in Italy may be slower than in other European countries. Some forecasters estimate that Italian tourism will not fully recover from the pandemic until 2025 , and business travel until 2027.

According to the Banco d’Italia, outbound tourists spent €26.0 billion in 2022 , just short of the €27.1 billion spent in 2019 (96%).

Domestic travel is very popular in Italy; outbound travel accounts for just 24% of tourism departures. Egypt, Turkey and Morocco are the most popular outbound developing destinations for Italian tourists. There was notable growth in departures to Turkey and Mexico in 2021.

Destinations popular with Italian tourists before the pandemic included Madagascar, Indonesia, Jordan, Vietnam and South Africa.

Italian travel behaviour

The average length of stay of Italian tourists has been increasing. In 2019, the average length of stay while on holiday was 8.3 days; by 2021, this had risen to 12.9 days. It is likely that Italians were keen to make the most of their travel time after the pandemic and opted for longer stays. The average spend per trip in 2022 was €909.63, a 16% increase from 2019 (€780.97). This could be the result of the increased length of stay.

Italians spend the largest share of their travel budget on accommodation and flights (30.6% and 27.1% respectively). Around 12.8% is spent on activities, the highest amongst the source markets along with France and Germany.

Italian tourists like to book trips well in advance, sometimes up to 11 months. They value recommendations from friends and family very highly (52%) and often use review sites (41%). In general, they like to do a lot of online research before making a decision. Italians are more likely to book their own travel arrangements using online platforms compared to other European countries and tend not to book package holidays.

Italians are tech savvy and spend a lot of time on social media.

Italian characteristics and travel motivations

Italians look for active, cultural holidays and prefer exploration to relaxation. They enjoy nature and like to spend time in the great outdoors, visiting natural attractions and experiencing wildlife. They are also very outgoing and like to eat out and socialise.

Italian tourists have the following characteristics:

• Older, wealthier Italians will travel at any time of the year.
• Italians like guided tours with Italian-speaking guides.
• Security, high-quality accommodation and good food are important to them.
• More than a quarter of Italians like to travel off-season.

While keen on sustainability, Italians are less sustainably minded than other European nations when they travel. However, as a nation of ‘foodies’, they do like to consume locally sourced produce while on holiday (42%). They also prefer to travel outside the main tourist season (27%), offering good opportunities to attract Italians in the low and shoulder seasons.

France has a population of 67.6 million people, the third largest in Europe. The French enjoy a high standard of living and above average wages within the European region. France’s economy is the third largest in Europe, after Germany and the UK. Despite the cost-of-living crisis and high inflation, which are affecting most countries in Europe, the French economy is expected to grow by 1% in 2023 and 1.2% in 2024 .

French outbound travel market

The French like to travel, making 30.4 million outbound trips in 2019 and 13.1 million in 2021. France’s outbound tourism expenditure is the third highest in Europe, after Germany and the UK, and in 2019 French tourists spent €56.7 billion overseas. The domestic leisure market proved resilient during the pandemic, and outbound travel is expected to recover in 2024 .

The outbound travel market is estimated at US$33.9 billion and projected to reach US$51.6 billion by 2032. This represents a CAGR of 4.3%.

Outside Europe, Africa is the most popular continent for French nationals to travel to. In 2019, Morocco was the most popular destination for French tourists, followed by Tunisia and Turkey. The table below shows that French tourism to most developing destinations still has some way to go before it reaches 2019 levels again. Before the pandemic, Malaysia, Sri Lanka, Chile, Colombia and Costa Rica were popular choices for French long-haul tourists. Countries with historical ties to France, like Senegal and Madagascar, are also favoured.

S ource: UNWTO

French travel behaviour

The average length of an outbound trip was 8.45 days in 2019; in 2021, this had fallen to 8.11 days. French tourists spend most of their travel budget on flights and transport (30.2%) and accommodation (29.5%). They also spend a comparatively large amount on food and drink (19.4%). Meanwhile, activities represent 13.1% of their expenditure, more than any other source market.

French tourists tend to start planning their trips around six months in advance, depending on the destination. They particularly value recommendations from friends and relatives (54%) and use websites to look at reviews and ratings from other tourists (29%). They are also keen users of traditional guidebooks alongside social media platforms. Generally, French tourists prefer to book directly with airlines and hotels (28%), and through online platforms (22%). If possible, they will use personal connections to book through a trusted source (26%).

French characteristics and travel motivations

French tourists are especially interested in the natural environment of a destination, and off-the-beaten-track destinations are becoming more popular. Local cultural offerings are also very important to them.

French people are known for their independent nature. Many French tourists like to make their own decisions and prefer to travel individually rather than as part of a group. The French can be very direct and straightforward in their communication, and they tend to speak less English than tourists from other European countries – if you can speak French to them, it will be appreciated. Reassurance about health and safety precautions are important for French holidaymakers.

French tourists are particularly interested in food, nature and scenery, and experiencing local culture. They like authenticity and immersive experiences. As an ageing country, the 55+ age group is set to be an important consumer group.

As a nation, France is especially concerned with sustainability, and French tourists are more likely to pay more for sustainable travel and accommodation than other Europeans. According to EU research, almost half of French people (48%) feel that sustainably certified accommodations are important . Individually, French tourists are increasingly choosing to travel less and stay longer. They may also look for alternative travel options, for instance taking the train instead of flying. French tourists have a number of strong preferences:

• Eat locally sourced products while on holiday (52%).
• Reduce waste while on holiday (45%).
• Know that more of their money directly benefits local communities (39%).
• Go on holiday outside the main tourist season (39%).

Netherlands

The Netherlands is a small but densely populated country of 17.5 million people. It is a wealthy, highly developed nation with a well-educated population. The Dutch economy is set for moderate growth in 2023 . The Netherlands is one of the most environmentally aware and sustainability-minded countries in Europe.

Dutch outbound travel market

Travel is extremely important to the Dutch – 85% of the population travel for personal reasons. In 2019, there were 22.0 million outbound trips from the Netherlands, which is an average of 1.3 trips per person and higher than the European average. The value of outbound tourism was €17.6 billion in 2019 and €7.5 billion in 2021, 60.4% below the level of 2019.

Recent outbound expenditure shows that Dutch people are increasingly keen to travel overseas again. In Q3 2022, outbound Dutch tourists spent more than €8.4 billion overseas , of which €1.4 billion was spent outside Europe. This represents an increase of 9% over the same period in 2019.

Turkey was the most popular destination for Dutch tourists in 2019, and demand for Turkish holidays showed strong growth in 2021. Morocco and Mexico were also popular destinations for Dutch tourists. Other notable destinations for Dutch tourists both before and after the pandemic include Malaysia, Vietnam, India and Colombia.

Dutch travel behaviour

According to Eurostat, the average length of stay of Dutch tourists abroad was 10.2 nights, and they spent €790 per trip. Dutch tourists are price conscious and look for good value. Like tourists from other European markets, the Dutch spend the majority of their travel budget on accommodation (30.2%) and flights and transport (28.2%). They also spend a relatively high proportion of their budget on food and drink (22.2%).

When planning a trip, the Dutch rely heavily on word of mouth from friends, colleagues and relatives (53%), and they use their own personal experiences to help shape their decisions (40%). As tech-savvy consumers, Dutch tourists also use websites like Tripadvisor to compare customer reviews and ratings, and to gather information.

Dutch characteristics and travel motivations

Nature and culture are important to Dutch tourists. They are also adventurous, seeking less crowded destinations with good sustainable credentials. Authentic experiences are important to them as well. They look for relaxation and the opportunity to get away from the stresses of everyday life by enjoying nature and outdoor activities.

Many Dutch people speak multiple languages to a good level, particularly English. They are interested in other cultures and are careful with their money, looking for good value. They are well organised when it comes to planning their holidays, often researching trips up to six months in advance. They are very comfortable using the internet to book their trips; few Dutch tourists use traditional travel agents to book their trips these days.

In general, the Dutch are very concerned about the environment, preferring to travel sustainably. The younger age groups show the strongest intention to change their travel behaviour. These changes include choosing alternative forms of transport to avoid flying and minimising their use of plastics to protect the environment. More and more Dutch people are becoming vegetarians (11% of the population) , particularly the younger generation aged 18-24. Destinations with good vegetarian cuisines will be popular choices for conscious consumers.

Figure 18: Importance of sustainability to Dutch tourists

Source: Visit Britain

Additional EU research found that Dutch tourists like to take practical action to travel sustainably, and that they aim to:

• Take holidays outside the main tourist season (45%).
• Eat locally sourced products while on holiday (44%).
• Reduce waste while on holiday (44%).
• Travel to less visited destinations (43%).

Spain has a large population of 47.2 million people and a well-diversified and resilient economy. It has the 14th largest economy in the world and the fourth largest in the EU. Although the Spanish economy grew by 5.5% in 2022, driven by public spending, it has yet to return to 2019 levels. Moreover, growth is expected to slow in 2023. This means that, like other European tourists, Spanish holidaymakers will be looking for good value experiences as the cost of living continues to influence spending behaviour.

Spanish outbound travel market

In 2019, Spain was the fifth largest outbound tourism market in the EU, with 19.8 million outbound trips. Most of these trips were to European destinations, the most popular being France, Portugal and Italy. Spanish outbound tourists spent a total of €27.7 billion in 2019.

Before the pandemic, Morocco was the most popular developing country for Spanish tourists by some margin, followed by Mexico. In 2021, there was a notable increase in departures to Mexico and Costa Rica from Spain. Both of these countries are Spanish speaking, and Latin America opened up more quickly to tourism than Asia.

Other destinations that appeal to Spanish tourists include Vietnam, Indonesia and India. South Africa is also a trending destination for Spanish holidaymakers, with arrivals in 2022 exceeding expectations by 60.2%.

Spanish travel behaviour

In 2019, Spanish tourists’ average length of stay was 7.2 days; by 2021, this had risen to 9.4 days. This most likely reflects a desire to travel again after the pandemic. It is also possible that Spanish tourists saved their holiday leave to go on longer trips. However, expenditure per day fell from US$123.9 in 2019 to US$92.4 per day in 2021. Spanish tourists spend more than half of their travel budget on accommodation (30.3%) and flights and transport (27.5%), in line with other European nations. However, they also spend more than one fifth of their budget on food and drink (20.5%), more than any other source market.

EU research shows that Spanish tourists value recommendations from friends and relatives, and that they use a variety of online websites to book their trips, including OTAs. Cultural offerings are the most important factor for them, closely followed by nature and price.

Many Spanish tourists book their holidays online, and they typically plan their trips abroad one to six months in advance, depending on the destination.

Spanish travel motivations

Beach destinations are the most popular amongst Spanish outbound tourists (37%), followed by rural/nature destinations (17%). They are also keen on taking part in religious activities, most likely because many Spanish people are Catholic and actively take part in religious festivals and ceremonies – more so than many other European nations. Food and drink experiences, CBT and ecotourism are also increasing in popularity amongst Spanish tourists. Other post-pandemic trends include taking big, once-in-a-life trips, and nomadic travel.

Value for money and authentic experiences with opportunities to interact with local people and cultures are also important factors for Spanish holidaymakers in choosing a destination. However, local cultural offerings (44%) and the natural environment (43%) are the most important factors.

Spanish tourists are amongst the most sustainably minded and proactively look to minimise their impact on destinations when they travel. They like to:

• Consume locally sourced products while on holiday (71%).
• Reduce waste while on holiday (68%).
• Take holidays outside the main tourist season (53%).
• Travel to less visited destinations (52%).
• Reduce water usage while on holiday (52%).
• Contribute to carbon-offsetting activities (52%).
• To find out more about European markets, do your own internet research. Many countries’ tourism organisations publish market profiles and consumer insights, including the UK , South Africa , and Australia . Although these organisations focus on inbound markets, they can still offer valuable information about tourists’ characteristics and motivations.
• Look for tourism research published by the EU. The Eurobarometer studies survey public opinion in the EU. The Flash Eurobarometer 499 – Attitudes of Europeans towards tourism was published in 2021.
• To keep up with relevant statistics, consult UNWTO and Eurostat’s tourism database . UNWTO has a tourism dashboard for statistics, but for more detailed data you will have to pay to get access to the e-library . Eurostat publishes many statistics that can be accessed for free.

3. Which tourism products from developing countries are most in demand in European markets?

The tourism products from developing countries that are most in demand in European markets are closely aligned with the adventure tourism segment. Adventure tourism is defined as tourism that includes at least two of the following three elements: a physical activity, the natural environment and cultural immersion. Developing countries offer some of the world’s most exciting and interesting adventure tourism opportunities, which Europeans are especially keen to take part in.

The most popular tourism products amongst European tourists are culture, wellness, food tourism, nature tourism and ecotourism, walking and hiking, and community-based tourism (CBT). All of these segments, which are profiled below, overlap or have links with adventure tourism, which is the primary segment for most developing countries.

Cultural tourism

Cultural tourism involves travel to experience and learn about the culture of a country or region. It includes both the tangible features (built heritage) and intangible features (such as music, local lifestyles, homestays and so on) of a destination’s history and heritage, culture, art, architecture and religion that have shaped its way of life.

Cultural tourism is perhaps the largest tourism niche in the world today, valued at up to US$1.1 trillion. It overlaps with many other niches, including CBT, visiting cities, religious tourism and food tourism. According to UNWTO, at least 40% of all tourists worldwide are cultural tourists. Cultural tourism is also set to grow, as tourists seek meaningful, immersive experiences and transformative and experiential tourism have become major trends.

The market for European cultural tourists is large as well, accounting for an estimated 40% of all European tourism. Tourists from Italy, France and the Netherlands are most interested in cultural tourism, while Germany has the largest European cultural tourism market. Cultural tourists have specific characteristics. They are typically well educated, tech savvy and affluent, and they are active and frequent travellers. They also tend to stay longer in a destination, spend more per day and enjoy interacting with local communities.

Figure 21: Enjoying cultural tourism in Machu Picchu, Peru

Source: Unsplash

The quality of a cultural tourism product depends to a large extent on the quality of local guides. They must be able to offer interesting and stimulating information, as well as an authentic and unique experience. Like all tourism products, cultural tourism must be developed based on sustainable, responsible and ethical principles. It must directly benefit local communities, while any negative impact on those communities, and on the environment and local culture, must be minimal.

The market for European buyers is very large. Most European tour operators, including Window to Travel and Nomade Aventure , offer cultural tourism – usually as part of a trip that also involves other forms of tourism. Culture is also a popular theme in tour operators’ advertising. There are specialist cultural tour operators as well, such as Martin Randall and Envoy Tours . Online travel agents (OTAs) such as Withlocals and Viator sell huge numbers of cultural products, ranging from short tours to full-day sightseeing excursions. Private guides, cooking classes, guided tours and skip-the-line tickets to major attractions are also popular.

• To find out how to attract European tourists, read the CBI study What are the opportunities on the European cultural tourism market ?

Wellness tourism

Wellness tourism is another significant niche that has shown particular resilience since the pandemic. Globally, people have been more interested in their own health and wellness, actively seeking ways to stay fit, both physically and mentally. Wellness encompasses many traditional activities, including yoga, meditation, spa treatments, hot springs tourism and eating healthy. However, ‘feel good’ activities like CBT, walking, cycling and swimming also contribute to wellness, so this is a broad category.

Besides North America, Europe is the largest market for wellness worldwide. European wellness tourists took almost 300 million wellness trips the year before the pandemic, and this market is expected to expand. It was valued at US$814.6 billion in 2023 , and over the next seven year it is predicted to grow at a CAGR of 12.4%.

There are two types of European wellness tourists: primary wellness tourists and secondary wellness tourists. Primary wellness tourists usually stay in all-inclusive wellness resorts that are typically luxurious and offer a full wellness package. Secondary wellness tourists are a much larger group, accounting for almost nine in 10 wellness trips, and 86% of total wellness expenditure. They engage in wellness activities as part of a bigger trip and are more interested in the cultural link between a destination and its unique local wellness remedies. This is the group that offers the best opportunities for local tour operators.

Germany, the UK and France are the most important source markets for wellness tourism. The Netherlands, Spain and Italy are other important markets. Germans are particularly experienced wellness travellers who value spending time in nature. British tourists focus on mental wellness and often choose yoga and meditation retreats for their wellness trips. French holidaymakers spend more than their counterparts from other European countries and will often travel further (if they can), favouring French-speaking countries like Madagascar.

There are many specialist wellness tourism providers in the European market, such as Healing Holidays and Wellnessurlaub . OTA platforms like Viator , GetYourGuide and Musement offer an enormous range of wellness trips, tours and experiences. Wellness products sold to European consumers must meet strict regulations around health, safety, cleanliness and qualified practitioners. These are key to ensuring the safety of wellness tourists and confidence in the skills and professionalism of local operators.

• To discover more about the European wellness tourism market, read the CBI study What are the opportunities on the European wellness tourism market ?

Food tourism

Food tourism is a very large and important tourism niche that has become more and more popular amongst outbound tourists. Estimates of its value vary from US$500 billion to US$1 trillion. It is a very diverse niche spanning many different things, such as food festivals, food museums, cooking classes, wine tastings and artisan producer visits. Through food, tourists can get a true sense of a destination’s culture, heritage and traditions. Local cuisines are often the main factor in choosing a destination.

Europeans who want to have immersive and authentic experiences often choose food experiences. This means that there are lots of opportunities for local operators to develop unique food tourism products and showcase their local cuisine. Food tourism also reaches many more people than just dedicated food tourists. It can also help stimulate year-round tourism by attracting tourists travelling out of season.

The European market is estimated to account for 35% of the food tourism niche. Holidaymakers from Spain are most likely to be food tourists (31%), followed by Italy (22%), France (20%) and Germany (18%). Food tourists spend roughly the same as other tourists during a trip (€1,547).

The European buyer market is a mix of tour operators for longer trips and OTAs for short food experiences. Tour operators like Original Travel and Essential Escapes usually include food experiences as part of a longer trip. There are also a small number of specialist food tour operators, such as Gourmet on Tour . OTAs are the most common platforms for short experiences. This group includes specialist platforms like Traveling Spoon and Eatwith , as well as larger activity-based OTAs like Viator .

• To find out more about the food tourism niche market, read the CBI study What are the opportunities on the European food tourism market ? .

Nature tourism and ecotourism

Nature tourism and ecotourism are closely related. Nature tourism involves travel for the purpose of enjoying natural areas and their biodiversity. Ecotourism involves environment-based experiences that are sustainable, low impact and help to protect or preserve local communities or natural environments. Demand for authentic and immersive experiences in natural surroundings is very high in the European market. This has been driven by the pandemic, which caused tourists to actively seek out less crowded destinations and natural environments.

The nature tourism niche is a significant segment. In 2018, global tourism to protected areas was valued at US$600 billion, while wildlife tourism was valued at US$343.6 billion. In line with sustainability trends, demand from Europeans for authentic, responsible nature trips is high. Germany has the largest market for nature tourists, followed by France and the Netherlands. Ecotourists are often prepared to pay more for experiences if they are meaningful and immersive.

Figure 22: Nature tourism and ecotourism in Costa Rica’s rainforests

Sustainability is an essential component in nature tourism and ecotourism. Taking a ‘ nature positive ’ approach to tourism development has been identified as crucial in the global effort to halt and reverse biodiversity loss by 2030 and build a better world. EU research from 2021 shows that Europeans want to behave sustainably when they travel, for instance by consuming locally sourced produce and reducing waste.

European tour operators usually offer a range of different experiences as part of nature packages, including trekking, cycling, wildlife safaris and birdwatching. Ecotourism experiences are often included in nature packages, but they can also be sourced directly (such as an ecolodge in the rainforest). Examples of European tour operators that specialise in nature tourism and ecotourism include Better Places , Far and Wild Travel and ASI Reisen .

• Do your own research on the nature tourism and ecotourism markets. The CBI studies What are the opportunities in the European market for nature tourism ? and What are the opportunities on the European ecotourism market ? are a good place to start.

Walking and hiking

Walking and hiking are popular all over the world, and they are directly linked to nature tourism and ecotourism. There are all kinds of walking and hiking opportunities, ranging from easy trails over gentle terrain to more challenging routes in more difficult conditions. Trips can last from a few hours to days or weeks, or longer. Walking and hiking tourism encompasses several specialist niche markets, including trekking, Nordic walking, hill and mountain walking, rock climbing and long-distance walking. Many hikers wants to discover remote destinations, immerse themselves in local cultures, and enjoy local cuisines en route.

Walking and hiking are amongst the most popular pastimes across Europe, attracting people of all ages. France has the largest hiking community in Europe – 54% of the population, or 38 million people, identify as hikers. In the UK, social media platforms are driving an increase in walking groups of people in their 20s and 30s. Research in 2018 found that 81% of UK millennials (born between 1980 and 1995, aged 27 to 42 today) would consider taking up hiking as a hobby. In Germany, Spain, Italy and the Netherlands, more and more people are taking to the trails every year.

Additional CBI research has shown that walking tourists usually stay longer at a destination, for an average of 12.6 nights. They also spend more, at €1,657 per trip. Walkers prefer to book their accommodation online, either on specialist platforms like Booking.com, or on platforms that combine services.

Almost half of all European tour operators are active in the walking and hiking niche (49.8%). Many operators specialise in walking holidays, such as Walks Worldwide (UK) and SNP Natuurreizen (Netherlands). Others include walking and hiking as themes within their portfolios. It is relatively easy to develop sustainable walking products that have minimal impact on the local environment and benefit local communities. They can also be less costly to implement.

• To find out more about the walking tourism niche, read the CBI study What are the opportunities for walking tourism from Europe ?

Community-based tourism

Community-based tourism (CBT) involves community-led tourism experiences where communities own, host and manage their own tourism programmes. Local communities benefit from this through economic empowerment and skills development. This form of tourism also inspires tourists and promotes cross-cultural understanding. CBT is a very popular tourism activity today, particularly amongst Europeans seeking authentic and immersive experiences. CBT is directly aligned with the growing demand for indigenous-led tourism experiences.

Sustainability is an essential component of CBT. This means that local CBT tour operators must offer sustainable products. As a result of the EU Green Deal, more and more European tour operators will only work with suppliers that are certified as sustainable. Travelife for Tour Operators , the Good Travel Seal and TourCert are the most widely recognised certification schemes by European buyers.

CBT particularly offers opportunities for small communities to enter the tourism market. CBT leaders like Costa Rica, Vietnam and India have been promoting CBT successfully for many years. But there are also emerging destinations, such as Colombia, which after decades of conflict now offers CBT as a way to develop economic self-sufficiency for remote communities and promote peacebuilding.

Figure 23: Community homestay in remote region of Colombia

Source: Acorn Tourism Consulting

European CBT tourists are adventure tourists, motivated by the ‘feel-good factor’ of immersive, cultural experiences. They want to ‘make a difference’ by helping local communities. CBT tourists can be found across all ages and consumer groups, and many like to travel independently as FITs (fully independent travellers), booking directly with communities or OTAs. Spanish tourists have the highest preference for CBT, followed by the UK, France and the Netherlands.

CBI research shows that CBT tourists stay longer in a destination (11.8 nights) than other tourists (10.5 nights). However, they also spend less than other tourists: €1,294 vs €1,547. CBT experiences are often less expensive than other tourism activities, which may account for the lower spending per trip. But although they spend less, CBT tourists are prepared to pay for experiences that they know will have a positive impact on people, places and the planet.

European tour operators usually sell CBT as part of larger adventure packages, which can either be scheduled or tailor-made tours. They often work with local destination marketing organisations (DMOs). The UK has the largest market for operators that specialise in cultural and adventure trips. Examples include Culture Contact and Nomadic Tribe . OTAs like Earth Changers and I Like Local are major platforms for CBT, offering local providers the opportunity to list their products directly.

• To find out more about CBT, read the study What are the opportunities for community-based tourism from Europe ?

Other interesting niches to be aware of

Other interesting niches that Europeans are keen on include SAVE (scientific, academic, volunteer and education tourism), water sports, sun and beach tourism, religious tourism, wildlife watching and city breaks.

The business tourism sector is another interesting sector. More and more business travellers are adding leisure to their work trips, also known as ‘bleisure’. Other tourists travel mainly for leisure but conduct business at the same time, staying in one place for longer. A new term that has emerged for this kind of leisure/business travel is ‘lisness’. These travellers can be compared to digital nomads and have similar communication requirements as they want to make sure they can conduct business efficiently.

To find out more about trends in the tourism industry, read the CBI report Which trends offer opportunities or pose threats on the European market ?

You can also read about other niche market segments and target groups on the CBI website .

Acorn Tourism Consulting Limited carried out this study on behalf of CBI.

Please review our market information disclaimer .

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European Union Tourism Industry

European Union Tourism Industry Analysis by Phone Booking and Online Booking through 2034

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European Union Tourism Industrial Outlook from 2024 to 2034

The European Union tourism ecosystem is estimated to be worth USD 672.5 billion by 2024 and is projected to reach a value of USD 1,385.9 billion by 2034, growing at a CAGR of 7.5% over the assessment period 2024 to 2034.

Tourism plays an important role in the European Union's GDP, generating substantial revenue through various channels such as accommodation, transportation, food, and entertainment. Countries like France, Spain, and Italy emerge as leading tourist destinations, attracting millions of visitors annually, further solidifying the economic prowess of the European Union.

Employment-wise, the tourism sector is an essential source of jobs across Europe, encompassing a wide spectrum of occupations from hospitality staff to tour guides and transportation personnel.

Regions heavily reliant on tourism, such as the Mediterranean coast or Alpine regions, tourism-related employment significantly contributes to local livelihoods and regional development. The seasonal nature of tourism employment provides opportunities for temporary work, especially benefiting young people and students seeking summer employment.

Tourism culturally fosters intercultural exchange and appreciation as visitors immerse themselves in the rich tapestry of European heritage and traditions. UNESCO World Heritage Sites scattered throughout the European Union serve as magnets for cultural tourism, drawing history enthusiasts and art aficionados from around the globe.

The culinary diversity across EU member states tantalizes the taste buds of tourists, offering a gastronomic journey through regional delicacies and culinary traditions.

The European Union tourism sector faces several challenges, including environmental sustainability concerns, infrastructure strain, and external factors such as geopolitical tensions and health crises.

The sustainability of mass tourism has come under scrutiny due to the environmental footprint, including carbon emissions from transportation and the strain on natural resources in popular destinations. Efforts to promote sustainable tourism practices, such as eco-friendly accommodations and responsible travel initiatives, are widely prioritized to mitigate the impacts.

Infrastructure strain is another pressing issue, particularly in destinations experiencing overtourism. Popular cities like Venice and Barcelona struggle to balance the influx of tourists with the preservation of local identity and quality of life for residents.

Western Europe, encompassing popular tourist destinations, has a rich cultural heritage, historical landmarks, and scenic landscapes that attract millions of visitors annually. Despite challenges, Western Europe remains a cornerstone of the European Union tourism industry , offering diverse experiences to travelers worldwide.

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Key Industry Highlights

Cultural Kaleidoscope Propelling the European Union Tourism Boom

The European Union tourism sector is its rich cultural diversity and historical heritage. The European Union boasts a wealth of iconic landmarks, museums, and UNESCO World Heritage Sites, attracting millions of visitors each year.

From the ancient ruins of Rome to the vibrant art scene in Paris, the cultural offerings of European Union member states appeal to tourists seeking immersive experiences. The cultural allure serves as a powerful magnet, drawing travelers from around the world and contributing significantly to the industrial growth and sustainability of the tourism sector.

Sustainable Surge in Transformation of the European Union Tourism Landscape

The surge of sustainable and responsible travel practices where travelers are widely prioritizing eco-friendly accommodations, supporting local communities, and seeking authentic cultural experiences while minimizing the environmental impact.

The trend is fueled by growing awareness of environmental issues and a desire for more meaningful travel experiences. European Union destinations are responding by promoting sustainable tourism initiatives, such as eco-tours, green certifications for accommodations, and conservation efforts in natural areas.

As sustainability becomes a central focus, the tourism landscape is reshaping in the European Union, offering both environmental benefits and enriching experiences for travelers.

Striking a Balance by Tackling Overtourism in the European Union

Cities like Venice, Barcelona, and Amsterdam face overcrowding issues, leading to environmental degradation, strain on infrastructure, and negative impacts on the quality of life for residents. Overtourism also threatens the preservation of cultural heritage and authenticity in the destinations.

The sector contributes to an upsurge in housing costs and displacement of residents, exacerbating social inequalities. Addressing overtourism requires sustainable tourism management strategies, including crowd control measures, diversification of tourism offerings, and efforts to promote less-visited destinations within the European Union.

2019 to 2023 European Union Tourism Demand Outlook Compared to Demand Forecast from 2024 to 2034

The European Union's tourism landscape has experienced steady growth from 2019 to 2023, reflected in the historical CAGR of 4.5%. The growth can be attributed to an upsurge in disposable income, improved transportation infrastructure, and marketing efforts to promote European Union destinations. The growth rate during the period can be characterized as moderate compared to other regions or industries.

Looking ahead to the forecast period from 2024 to 2034, the European Union tourism industry is expected to enter a phase of accelerated expansion, with a projected CAGR of 7.5%. Advancements in technology and digitalization are expected to enhance the overall travel experience, making the sector more convenient and accessible for tourists.

The future of tourism investment in the European Union in emerging ecosystems, particularly in Asia and Africa, is anticipated to drive a surge in international tourism to European Union destinations. Efforts promoting sustainable tourism practices and cultural exchange initiatives attract a broader range of travelers seeking authentic and responsible experiences.

External factors such as geopolitical tensions, natural disasters, and health crises can impact travel demand and consumer behavior unpredictably. The landscape must navigate sustainability concerns, including over-tourism in popular destinations and environmental conservation efforts.

To capitalize on the projected growth, stakeholders in the European Union tourism sector must prioritize strategic investments in infrastructure, sustainable tourism initiatives, and marketing efforts to promote lesser-known destinations and ensure inclusive growth across regions.

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Comparative Analysis

Below is a comparative analysis of the two industries, namely the South America tourism industry and the Thailand tourism industry.

The growth can be attributed to historical landmarks and efficient transportation infrastructure across European Union (EU) member states. Favorable government policies and initiatives aimed at promoting tourism, coupled with a surge in disposable incomes and leisure travel preferences, contribute to sustained expansion in the EU tourism sector.

South America Tourism Industry:

The South American tourism industry boasts natural wonders like the Amazon rainforest and the Andes mountains. Efforts to improve infrastructure, enhance safety measures, and promote sustainable tourism practices may unlock growth potential in the region over the forecast period.

Thailand Tourism Industry:

Thailand’s tourism industry’s allures lie in its pristine beaches, vibrant cultural heritage, and renowned hospitality. Factors like environmental degradation, overcrowding in tourist hotspots, and geopolitical tensions may dampen growth prospects.

Country-wise Insights

The table represents the top five countries ranked by revenue, with Spain holding the top position. The industry is led significantly by sales of the European Union tourism industry in Spain, the United Kingdom, and France. Western Europe region emerges as a key industry at a global level.

The Forecast CAGRs from 2024 to 2034

The impact of EU investment on Sustainable Tourism Practices in Spain

Spain's tourism sector serves as a cornerstone of its economy, contributing significantly to GDP, employment, and regional development. The country's diverse attractions, including historic landmarks, vibrant culture, and sun-soaked beaches, draw millions of visitors each year.

In Spain, tourism is deeply ingrained in the fabric of society, with iconic destinations like Barcelona, Madrid, and Andalusia attracting international travelers seeking rich cultural experiences. The allure of Spanish cuisine, renowned for its tapas, paella, and world-class wines, further enhances the tourism appeal.

Spain's natural beauty, from the rugged landscapes of the Pyrenees to the pristine beaches of the Balearic Islands, offers a plethora of outdoor activities for nature enthusiasts and adventure seekers.

The tourism ecosystem in Spain also plays a vital role in regional development, with coastal areas like the Costa del Sol and the Canary Islands heavily reliant on tourism for economic prosperity.

The Development of Wellness Tourism and its potential for Growth within the EU Impresses the United Kingdom Industry

In the United Kingdom, tourism is a multifaceted ecosystem that encompasses cultural heritage, urban attractions, and natural landscapes. Iconic landmarks like Buckingham Palace, the Tower of London, and Stonehenge attract visitors from around the globe, contributing to the United Kingdom's status as a top tourist destination.

London, the capital city, stands out as a cultural and economic hub, drawing tourists with its world-class museums, theaters, and shopping districts. The rich history and cultural heritage of the United Kingdom, exemplified by Shakespearean theater, medieval castles, and picturesque villages, provide a unique draw for international tourists seeking immersive experiences.

The sector benefits from its status as a financial center, attracting business travelers and facilitating MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism.

Visa and Immigration Policies within the EU Impacting Ease of Travel for Tourists in France

Visa and immigration policies within the EU play an important role in shaping the ease of travel for tourists in France. As a Schengen member state, France benefits from the Schengen Agreement's visa-free travel for citizens of many countries, simplifying entry procedures for tourists.

Fluctuations in EU visa policies, such as changes in visa requirements or stricter border controls, can impact tourist flows. Streamlined visa processes and consistent immigration policies within the EU are essential to maintaining France's attractiveness as a tourist destination.

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Category-wise Insights

The section contains information about the leading segments in the industry. Based on consumer orientation, the men segment is estimated to account for a share of 63.2% by 2034. By tour type, the independent traveler category is projected to dominate by holding a share of 43.8% in 2034.

Evolving Role of Men in European Union Tourism Management

Based on the consumer orientation, the men’s segment is accounted to hold an industrial share of 63.2% in 2024.

Changing societal norms may result in more men participating in leisure travel independently or in groups. Targeted marketing strategies tailored to male preferences and interests could also play a role in attracting a larger share of male travelers.

Understanding the specific needs and desires of male tourists, for cultural experiences, sports events, or wellness retreats, will be crucial for businesses and destinations looking to capitalize on this consumer segment's dominance.

Independent Travelers Exploring Destinations by Immersing in Local Culture

Based on tour type, the independent traveler segment is accounted to hold an industrial share of 43.8% in 2024.

Independent travelers seek to explore destinations, allowing for greater immersion in local culture, interactions with residents, and off-the-beaten-path discoveries. Technological advancements, such as online booking platforms, mobile apps, and digital guides, have empowered travelers to plan and manage such trips independently, further fueling the growth of this segment.

The surge of remote work and digital nomadism has enabled more people to embark on extended independent travel adventures, blurring the lines between leisure and work-related tourism.

Competition Outlook

The competitive outlook of the European Union tourism industry is marked by a dynamic landscape characterized by both traditional players and innovative startups. Established tourism businesses, including hotels, airlines, and tour operators, compete alongside emerging startups leveraging technology to disrupt the ecosystem.

The startups often focus on niche segments, such as sustainable travel, experiential tourism, or peer-to-peer accommodation platforms, challenging incumbents and reshaping consumer preferences.

Mergers and acquisitions play a significant role in the competitive dynamics of the sector, with larger companies acquiring startups to expand offerings or gain access to new sectors. Startups may merge to consolidate resources and scale such operations more efficiently.

Industry Updates

• In 2023, Topdeck Travel partnered with leading sustainability organizations to enhance eco-friendly initiatives. The key development reflects Topdeck's commitment to promoting sustainable tourism practices within the European Union, aligning with growing consumer demand for environmentally responsible travel options.
• In 2023, The Natural Adventure Company introduced a new digital platform aimed at enhancing the customer experience. The platform integrated interactive maps, personalized itineraries, and real-time updates, providing travelers with greater flexibility and convenience while exploring Europe's natural landscapes. The innovative development underscored the company's focus on leveraging technology to offer immersive and seamless travel experiences within the European Union.

Leading European Union Tourism Brands

• The Natural Adventure Company
• G Adventures
• Shamrocker Adventures
• Exodus Travel
• On Go tours
• Tuckan Travel

Key Segments

By booking channel:.

The industry is classified into phone booking, online booking and in-person booking.

By Consumer Orientation:

The report consists of key sourcing, such as men, women and children.

By Age group:

The segment comprises of 15-25 years, 26-35 years, 36-45 years, 46-55 years, 56-65 years and 66-75 years.

By Tour type:

In terms of tour type, the industry is divided into independent traveler, tour group, and package traveller.

By Tourist Type:

A few of the important tourist types are domestic and international.

Analysis of the ecosystem has been carried out in key countries of the United Kingdom, Germany, Italy, France and Spain.

Frequently Asked Questions

How big is the european union tourism industry.

The industry is set to reach USD 672.5 billion in 2024.

What was the worth of the European Union tourism industry from 2019 to 2023?

The industry witnessed a CAGR of 4.8% from 2019 to 2023.

What is the future of European Union tourism?

The industry is set to witness a CAGR of 7.5% by 2034.

Which region dominates the industry?

Spain dominates the industry at a CAGR of 6.4% by 2034.

Which tour type would lead the industry?

Independent travelers of European Union tourism are estimated to hold a significant share in 2024.

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• Transportation and Logistics

Europe Business Travel Market

Europe business travel market report by type (managed business travel, unmanaged business travel), purpose type (marketing, internal meetings, trade shows, product launch, and others), expenditure (travel fare, lodging, dining, and others), age group (travelers below 40 years, travelers above 40 years), service type (transportation, food and lodging, recreational activities, and others), travel type (group travel, solo travel), end user (government, corporate, and others), and country 2024-2032.

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Market Overview:

The Europe business travel market size reached US$ 236.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 332.6 Billion by 2032, exhibiting a growth rate (CAGR) of 3.8% during 2024-2032.

Business travel refers to a journey that is undertaken for work. It is paid for by the companies and organizations and is set up either by in-house travel departments or external service providers. It includes various services, such as source and procurement, planning and booking, account management, and measuring and reporting. Business travel also offers the opportunity of generating mass saving through the process of negotiated discounts.

The Europe business travel market is primarily driven by the improving economic conditions in the region, which is increasing the demand for domestic and international business travel. With the demand exceeding the supply and consolidation reducing competitive pressure, short-haul prices are witnessing significant increases, while the much smaller long-haul sector is experiencing moderate price gains. Besides this, with the expanding European travel network, travelers are shifting their focus from product improvement to enhancing the customer experience. Furthermore, globalization has increased business activities in industries like healthcare and pharmaceuticals and manufacturing, which is resulting in the rapid rise of inter-regional operations.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the Europe business travel market report, along with forecasts at the regional and country level from 2024-2032. Our report has categorized the market based on type, purpose type, expenditure, age group, service type, travel type and end user.

Breakup by Type:

• Managed Business Travel
• Unmanaged Business Travel  

Breakup by Purpose Type:

• Internal Meetings
• Trade Shows
• Product Launch
• Others  

Breakup by Expenditure:

• Travel Fare

Breakup by Age Group:

• Travelers Below 40 Years
• Travelers Above 40 Years  

Breakup by Service Type:

• Transportation
• Food and Lodging
• Recreational Activities

Breakup by Travel Type:

• Group Travel
• Solo Travel  

Breakup by End User:

Breakup by Country :

United Kingdom

Competitive landscape:.

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Report Coverage:

Key questions answered in this report.

The Europe business travel market was valued at US$ 236.3 Billion in 2023.

We expect the Europe business travel market to exhibit a CAGR of 3.8% during 2024-2032.

The rising popularity of business travel for client meetings, brand and product promotions, employee training and incentives, etc., is primarily driving the Europe business travel market.

The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several European nations, resulting in the temporary restrictions on intra- and inter-national travel activities, thereby negatively impacting the Europe market for business travel.

Based on the type, the Europe business travel market can be segregated into managed business travel and unmanaged business travel, where unmanaged business travel exhibits clear dominance in the market.

Based on the purpose type, the Europe business travel market has been divided into marketing, internal meetings, trade shows, product launch, and others. Currently, marketing holds the total market share.

Based on the expenditure, the Europe business travel market can be categorized into travel fare, lodging, dining, and others. Among these, travel fare currently accounts for the majority of the total market share.

Based on the age group, the Europe business travel market has been segmented into travelers below 40 years and travelers above 40 years. Currently, travelers below 40 years exhibit a clear dominance in the market.

Based on the service type, the Europe business travel market can be bifurcated into transportation, food and lodging, recreational activities, and others. Among these, food and lodging currently holds the largest market share.

Based on the travel type, the Europe business travel market has been segregated into group travel and solo travel. Currently, group travel exhibits a clear dominance in the market.

Based on the end user, the Europe business travel market can be divided into government, corporate, and others. Among these, the corporate sector accounts for the majority of the total market share.

On a regional level, the market has been classified into Germany, France, United Kingdom, Italy, Spain, and others, where Germany currently dominates the Europe business travel market.

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Europe Travel Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers European Travel Insurance Companies and it is Segmented By Insurance Coverage (Single-Trip Travel Insurance, Annual Multi-trip Travel Insurance, and Others), By Distribution channels (Direct Sales, Online Travel Agents, Airports And Hotels, Brokers, and Other Insurance Intermediaries), By End-User (Senior Citizens, Business Travelers, Family Travelers, and Others (Education Travelers, etc.) and by Country (Germany, United Kingdom, France, Italy, Spain, and Rest of Europe). The Market size and forecasts for Europe Travel Insurance Market are provided in terms of value (USD Million) for all the above segments.

• Europe Travel Insurance Market Size

Need a report that reflects how COVID-19 has impacted this market and its growth?

Europe Travel Insurance Market Analysis

The Europe Travel Insurance Market size in terms of gross written premiums value is expected to grow from EUR 4.39 billion in 2024 to EUR 6.05 billion by 2029, at a CAGR of 6.20% during the forecast period (2024-2029).

2021 saw the Travel Insurance industry grapple with a multitude of challenges including pandemic impacts, disruptive technology, and climate-related risks. COVID-19 accelerated the transition to digital solutions because of necessity and enabled insurers to manage the pandemic's impact by allowing workforces to operate remotely effectively and efficiently. But with this shift came the rise in cyber threats.

However, whilst last year necessitated a faster pace of change than was perhaps ideal, looking forward the insurers will want to continue to adapt to protect their operations, and market and promote customer retention. Customer demand for more interactive and efficient digital platforms and products is set to continue, which will require travel insurers' ongoing adaption to new technologies. With that will possibly come associated cyber risks, with ransomware and supply chain attacks continuing to increase. However, digital transformation remains important for insurers wanting to stay relevant, competitive, and reputationally sound in the current market.

• Europe Travel Insurance Market Trends

Artificial Intelligence in Insurance

As the use of artificial intelligence (AI) becomes more widespread across the travel insurance industry, regulators are examining how its use could potentially impact customers. Specifically, the European Commission is proposing cross-sectoral regulations that would control - and, in some instances, prohibit - certain practices: for example, the use of AI systems by public agencies, or on their behalf, for social scoring purposes. Given the growing societal concerns about customer privacy, data security, and the potential impact of AI on human agency, it is no surprise that the EC and other entities are exploring new guidelines. In effect, we take the view that a regulatory stance is essential and applaud the early position taken by the EC. However, proposals from certain policymakers could limit insurers' abilities to undertake certain practices: for example, to assess risk and price policies accurately, personalize customer experiences, and mine data assets for actionable insights. Since the industry is already required to adhere to a wide range of regulatory requirements, a sensible step would be for insurers to collectively engage with regulators to explain how they both protect consumer data and ensure fair, unbiased use of AI in all its forms. They should also reassure regulators that the necessary precautions are being taken by insurers to safeguard against possible problematic cases.

Travel and Tourism Industry is driving the Insurance Market

Some of the most well-known cities and nations in the world are found in Europe. There is something for every kind of tourist because of the intriguing history, numerous different cultures, and stunning natural scenery. There are 44 countries in Europe, 27 of which are designated as belonging to the European Union, according to the UN. Travel and tourism generated USD 1,450 billion for Europe's overall GDP in 2021. France is the most visited country in Europe in 2019, welcoming 89.4 million foreign visitors. With 50% of all international visitor arrivals, Europe as a whole (EU and non-EU) continues to be the most popular travel destination in the world.

The notable increase in the travel and tourism sector in recent years, which can be attributed to rising disposable incomes, an increase in business trips, and the easy accessibility of online travel bookings and discounted package holidays, is one of the key factors propelling the growth of the Europe Travel Insurance Market. Consumers are increasingly opting for Travel Insurance to manage risks such as airline cancellations, luggage and important document loss, and medical crises, which is growing the Travel Insurance Market share. Convenient choices for clients to acquire Travel Insurance via online comparison-shopping sites such as direct airline sites and online travel agents (OTAs), company websites and apps, and others support the Europe travel insurance market's development.

Europe Travel Insurance Industry Overview

Europe Travel Insurance Market is consolidated in nature. Some of the key major players operating currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are expanding their market presence by securing new contracts and by tapping new markets.

Europe Travel Insurance Market Leaders

Assicurazioni Generali S.P.A.

American International Group Inc.

*Disclaimer: Major Players sorted in no particular order

Europe Travel Insurance Market News

• In August 2022, French insurance giant Axa said an uptick in earnings, driven by higher incomes from its investment portfolio, offset the €300m (£251m) hit to its business arising from the war in Ukraine. Axa's decision to launch its €1bn share buyback scheme saw shares in the insurance giant surge by almost five percent in the early morning trading session, as the firm set out plans to complete its buyback by February 2023, subject matter to market conditions.
• In April 2022, AXA Partners, an AXA business unit offering a wide range of solutions in assistance services, travel, and specialized insurance and credit protection, has teamed up with Trip.com again to further expand travel insurance products in Europe.

Europe Travel Insurance Market Report - Table of Contents

1. INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2. RESEARCH METHODOLOGY

2.1 Research Framework

2.2 Secondary Research

2.3 Primary Research

2.4 Data Triangulation and Insight Generation

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS AND DYNAMICS

4.1 Market Overview

4.2 Market Drivers

4.3 Market Restraints

4.4 Industry Attractiveness- Porter's Five Forces Analysis

4.4.1 Threat of New Entrants

4.4.2 Bargainning Power of Buyers

4.4.3 Bargainning Power of Suppliers

4.4.4 Threat of Substitutes

4.4.5 Intensity of Competative Rivalry

4.5 Insights into Latest Technological Innovations and Recent Trends in the Industry

4.6 Insights on Government Regulations in the Industry

4.7 Impact of COVID-19 on the Market

5. MARKET SEGMENTATION

5.1 Insurance Coverage

5.1.1 Single-Trip Travel Insurance

5.1.2 Annual Multi-trip Travel Insurance

5.2 By Distribution Channel

5.2.1 Insurance Companies

5.2.2 Insurance Intermediaries

5.2.3 Banks

5.2.4 Insurance Brokers

5.2.5 Other Distribution Channels

5.3 By End-User

5.3.1 Senior Citizens

5.3.2 Education Travelers

5.3.3 Family Travelers

5.3.4 Other End Users

5.4 By Country

5.4.1 Germany

5.4.2 United Kingdom

5.4.3 France

5.4.4 Italy

5.4.5 Spain

5.4.6 Rest of Europe

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration Overview

6.2 Company Profiles

6.2.1 Allianz

6.2.2 Assicurazioni Generali S.P.A.

6.2.3 American International Group Inc.

6.2.5 Aviva

6.2.6 Insure & Go Insurance Services Limited

6.2.7 Signal Iduna

6.2.8 The April Group

6.2.9 Mutuaide

6.2.10 Zurich*

• *List Not Exhaustive

7. MARTKET OPPORTUNITIES AND FUTURE TRENDS

8. ABOUT US

Europe Travel Insurance Industry Segmentation

The report focuses on the complete background of the European Travel Insurance Market, which comprises an assessment of the developing market trends by segments, important changes in the market dynamics, and a market overview.

Europe Travel Insurance Market is Segmented By Insurance Coverage (Single-Trip Travel Insurance, Annual Multi-trip Travel Insurance, and Others), By Distribution channels (Insurance Companies, Insurance Intermediaries, Banks, Insurance Brokers, and Other Distribution Channels), By End-User (Senior Citizens, Education Travelers, Family Travelers, and Others End Users) and by Country (Germany, United Kingdom, France, Italy, Spain, and Rest of Europe). The report offers Market size and forecasts for Europe Travel Insurance Market in value (USD) for all the above segments.

Europe Travel Insurance Market Research FAQs

How big is the europe travel insurance market.

The Europe Travel Insurance Market size is expected to reach EUR 4.39 billion in 2024 and grow at a CAGR of 6.20% to reach EUR 6.05 billion by 2029.

What is the current Europe Travel Insurance Market size?

In 2024, the Europe Travel Insurance Market size is expected to reach EUR 4.39 billion.

Who are the key players in Europe Travel Insurance Market?

Allianz, Assicurazioni Generali S.P.A., American International Group Inc., AXA and Aviva are the major companies operating in the Europe Travel Insurance Market.

What years does this Europe Travel Insurance Market cover, and what was the market size in 2023?

In 2023, the Europe Travel Insurance Market size was estimated at EUR 4.13 billion. The report covers the Europe Travel Insurance Market historical market size for years: . The report also forecasts the Europe Travel Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

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Europe Travel Insurance Industry Report

Statistics for the 2024 Europe Travel Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Travel Insurance analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Europe Travel Insurance Market Report Snapshots

• Europe Travel Insurance Market Share
• Europe Travel Insurance Companies

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Now boarding: Faces, places, and trends shaping tourism in 2024

After falling by 75 percent in 2020, travel is on its way to a full recovery by the end of 2024. Domestic travel is expected to grow 3 percent annually and reach 19 billion lodging nights per year by 2030. 1 Unless otherwise noted, the source for all data and projections is Oxford Economics. Over the same time frame, international travel should likewise ramp up to its historical average of nine billion nights. Spending on travel is expected to follow a similar trajectory, with an estimated $8.6 trillion in traveler outlays in 2024, representing roughly 9 percent of this year’s global GDP.

About the authors

This article is a collaborative effort by Caroline Tufft , Margaux Constantin , Matteo Pacca , and Ryan Mann , with Ivan Gladstone and Jasperina de Vries, representing views from McKinsey’s Travel, Logistics & Infrastructure Practice.

There’s no doubt people still love to travel and will continue to seek new experiences in new places. But where will travelers come from, and where will they go? We developed a snapshot of current traveler flows, along with estimates for growth through 2030. For the purposes of this report, we have divided the world into four regions—the Americas, Asia, Europe, and the Middle East and Africa.

Our analysis identifies three major themes for industry stakeholders to consider:

• The bulk of travel spending is close to home. Stakeholders should ensure they capture the full potential of domestic travel before shifting their focus to international travelers. And they should start with international travelers who visit nearby countries—as intraregional trips represent the largest travel segment after domestic trips.
• Source markets are shifting. Although established source markets continue to anchor global travel, Eastern Europe, India, and Southeast Asia are all becoming fast-growing sources of outbound tourism.
• The destinations of the future may not be the ones you imagine. Alongside enduring favorites, places that weren’t on many tourists’ maps are finding clever ways to lure international travelers and establish themselves as desirable destinations.

The bulk of travel spending is close to home

International travel might feel more glamorous, but tourism players should not forget that domestic travel still represents the bulk of the market, accounting for 75 percent of global travel spending (Exhibit 1). Domestic travel recovered from the COVID-19 pandemic faster than international travel, as is typical coming out of downturns. And although there has been a recent boom in “revenge travel,” with travelers prioritizing international trips that were delayed by the pandemic, a return to prepandemic norms, in which domestic travel represents 70 percent of spending, is expected by 2030.

The United States is the world’s largest domestic travel market at $1 trillion in annual spending. Sixty-eight percent of all trips that start in the United States remain within its borders. Domestic demand has softened slightly, as American travelers return abroad. 2 Dawit Habtemariam, “Domestic U.S. tourism growth levels off as Americans head overseas,” Skift, August 18, 2023. But tourism players with the right offerings are still thriving: five national parks broke attendance records in 2023 (including Joshua Tree National Park, which capitalized on growing interest from stargazers indulging in “dark sky” tourism 3 Scott McConkey, “5 national parks set attendance records in 2023, and the reasons may surprise you,” Wealth of Geeks, April 16, 2024. ).

China’s $744 billion domestic travel market is currently the world’s second largest. Chinese travelers spent the pandemic learning to appreciate the diversity of experiences on offer within their own country. Even as borders open back up, Chinese travelers are staying close to home. And domestic destinations are benefiting: for example, Changchun (home to the Changchun Ice and Snow Festival) realized 160 percent year-on-year growth in visitors in 2023. 4 Shi Xiaoji, “Why don’t Chinese people like to travel abroad anymore? The global tourism industry has lost 900 billion yuan. What is the situation?,” NetEase, February 12, 2024. In 2024, domestic travel during Lunar New Year exceeded prepandemic levels by 19 percent.

China’s domestic travel market is expected to grow 12 percent annually and overtake the United States’ to become the world’s largest by 2030. Hotel construction reflects this expectation: 30 percent of the global hotel construction pipeline is currently concentrated in China. The pipeline is heavily skewed toward luxury properties, with more than twice as many luxury hotels under construction in China as in the United States.

India, currently the world’s sixth-largest domestic travel market by spending, is another thriving area for domestic travel. With the subcontinent’s growing middle class powering travel spending growth of roughly 9 percent per year, India’s domestic market could overtake Japan’s and Mexico’s to become the world’s fourth largest by 2030. Domestic air passenger traffic in India is projected to double by 2030, 5 Murali Krishnan, “Can India’s airports cope with rapid passenger growth?,” Deutsche Welle, February 7, 2024. boosted in part by a state-subsidized initiative that aims to connect underserved domestic airports. 6 “India is seeing a massive aviation boom,” Economist , November 23, 2023.

When travelers do go abroad, they often stay close to home (Exhibit 2).

Europe and Asia, in particular, demonstrate strong and growing intraregional travel markets.

Recognizing this general trend, stakeholders have been funneling investment toward regional tourism destinations. An Emirati wealth fund, for instance, has announced its intent to invest roughly $35 billion into established hospitality properties and development opportunities in Egypt. 7 Michael Gunn and Mirette Magdy, “UAE’s $35 billion Egypt deal marks Gulf powers’ buying spree,” Bloomberg, April 27, 2024.

Europe has long played host to a high share of intraregional travel. Seventy percent of its travelers’ international trips stay within the region. Europe’s most popular destinations for intraregional travelers are perennial warm-weather favorites—Spain (18 percent), Italy (10 percent), and France (8 percent)—with limited change to these preferences expected between now and 2030.

Despite longer travel distances between Asian countries, Asia’s intraregional travel market is beginning to resemble Europe’s. Intraregional travel currently accounts for about 60 percent of international trips in Asia—a share expected to climb to 64 percent by 2030. As in Europe in past decades, Asian intraregional travel is benefiting from diminishing visa barriers and the development of a low-cost, regional flight network.

Thailand is projected to enjoy continued, growing popularity with Asian travelers. Thailand waived visa requirements for Chinese tourists in 2023 and plans to do the same for Indian tourists starting in 2024. It has aggressively targeted the fast-growing Indian traveler segment, launching more than 50 marketing campaigns directed at Indians over the past decade. The investment may be paying off: Bangkok recently overtook Dubai as the most popular city destination for Indian tourists. 8 “Bangkok overtakes Dubai as top destination for Indians post visa relaxation, reveals Agoda,” PR Newswire, January 18, 2024.

A McKinsey ConsumerWise survey on consumer sentiment, conducted in February 2024, suggests that Chinese travelers are also exhibiting high interest in international travel, with 36 percent of survey respondents indicating that they intend to spend more on international travel in the next three months. 9 Daniel Zipser, “ China brief: Consumers are spending again (outside of China) ,” McKinsey, April 8, 2024. Much of this interest is directed toward regional destinations such as Southeast Asia and Japan, with interest in travel to Europe down from previous years. 10 Guang Chen, Zi Chen, Steve Saxon, and Jackey Yu, “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Given travelers’ preference for proximity, how can tourism stakeholders further capitalize on domestic and intraregional travel demand? Here are a few strategies:

• Craft offerings that encourage domestic tourists to rediscover local gems. Destinations, hotels, and transportation providers can encourage domestic tourists to integrate lesser-known cultural landmarks into their trips to visit friends and relatives. In France, the upscale hotel chain Relais & Châteaux markets historic properties that lie far from classic tourist sights—such as Château Saint-Jean in rural Auvergne—as a welcome escape from the bustle of Paris. In Mexico, the Pueblos Mágicos program has successfully boosted domestic tourist visits to a set of “magical towns” that showcase Mexican heritage.
• Fold one-off domestic destinations into fuller itineraries. Route 66 in the United States is a classic road trip pathway, which spurs visits to attractions all along the highway’s length. Tourism stakeholders can collaborate to create similar types of domestic itineraries around the world. For instance, Mexico has expanded on its Pueblos Mágicos concept by branding coordinated visits to multiple villages as “magical routes.” In France, local tourism boards and vineyards have collaborated to promote bucket list “wine routes” around the country.
• Make crossing borders into neighboring countries seamless. Removing logistical barriers to travel can nudge tourists to upgrade a one-off trip to a single attraction into a bucket list journey across multiple, less-trodden destinations. In Africa, for example, Ethiopian Airlines is facilitating cross-border travel to major regional tourist sites through improved air connectivity. In Asia, Thailand has announced its intent to create a joint visa easing travel among Cambodia, Laos, Malaysia, Myanmar, Thailand, and Vietnam.

Source markets are shifting

The United States, Germany, the United Kingdom, China, and France remain the world’s five largest sources of travelers, in that order. These countries collectively accounted for 38 percent of international travel spending in 2023 and are expected to remain the top five source markets through 2030. But interest in travel is blossoming in other parts of the world—causing a shift in the balance of outbound travel flows (Exhibit 3).

North Americans’ travel spending is projected to hold steady at roughly 3 percent annual growth. US consumers voice growing concerns about inflation, and the most cost-constrained traveler segments are reducing travel, which is affecting ultra-low-cost airlines and budget hotels. Most travelers, however, plan to continue traveling: McKinsey research suggests that American consumers rank international and domestic travel as their highest-priority areas for discretionary spending. Instead of canceling their trips, these consumers are adapting their behavior by traveling during off-peak periods or booking travel further in advance. Travel spending by Europeans paints a slightly rosier picture, with roughly 5 percent projected annual growth. Meanwhile, the projected 12 percent annual growth in Chinese travelers’ spending should anchor substantial increases in travel spending across Northeast Asia.

Alongside these enduring traveler segments, new groups of travelers are emerging. Eastern Europe, India, and Southeast Asia are still comparatively small source markets, but they are developing fast-growing pools of first-time tourists (Exhibit 4).

India’s breakneck GDP growth of 6 percent year over year is bolstering a new generation of travelers, 11 Benjamin Laker, “India will grow to become the world’s third-largest economy by 2027,” Forbes , February 23, 2024. resulting in a projected annual growth in travel spending of 9 percent between now and 2030. Indian air carriers and lodging companies are making substantial investments to meet projected demand. Budget airline IndiGo placed the largest aircraft order in commercial aviation history in 2023, when it pledged to buy 500 Airbus A320 planes 12 Anna Cooban, “Biggest plane deal in history: Airbus clinches massive order from India’s IndiGo,” CNN, June 19, 2023. ; that same week, Air India nearly equaled IndiGo’s order size with purchase agreements for 250 Airbus and 220 Boeing jets. IndiGo later added an order for 30 additional Airbus A350 planes, well suited to serving both domestic and international routes. 13 “Airbus confirms IndiGo's A350 aircraft order,” Economic Times , May 6, 2024. The Indian Hotels Company Limited is ramping up its hotel pipeline, aiming to open two new hotels per month in the near future. International players are not sitting on the sidelines: seven hotel chains are launching new brands in India in 2024, 14 Peden Doma Bhutia, “Indian Hotels expansion plans: 2 new brands launching, 2 hotels opening every month,” Skift, February 2, 2024. including Marriott’s first Moxy- and Tribute-branded hotels in India and entrants from Hilton’s Curio and Tapestry brands. 15 Forum Gandhi, “Check-in frenzy: International hotel giants unleash fresh brands in India’s booming hospitality landscape,” Hindu Businessline , February 13, 2024. Development focus has shifted away from major metropolises such as Mumbai and Delhi and toward fast-developing, smaller cities such as Chandigarh and Hyderabad.

Southeast Asian travel spending is projected to grow at roughly 7 percent per year. Pockets of particularly high growth exist in Cambodia, Malaysia, and the Philippines. To capitalize on this blossoming source market, neighboring countries are rolling out attractive visa arrangements: for example, China has agreed to reciprocal visa waivers for short-term travelers from Malaysia, Singapore, and Thailand. 16 Julienna Law, “China launches ‘visa-free era’ with Southeast Asia. Will travel retail boom?,” Jing Daily , January 30, 2024.

Travel spending by Eastern Europeans is expected to grow at 7 percent per year until 2030—two percentage points higher than spending by Western Europeans. Areas of especially high growth include the Czech Republic, Hungary, and Poland, where middle-class travelers are increasingly venturing farther afield. Major tourism players, including the TUI Group, have tapped into these new source markets by offering charter flights to warm-weather destinations such as Egypt. 17 Hildbrandt von Klaus, “TUI develops Czech Republic as a new source market,” FVW, December 22, 2023.

Although the number of travelers from these new source markets is growing, their purchasing power remains relatively limited. Compared with Western European travelers (who average $159 per night in total travel spending), South Asians spend 20 percent less, Eastern Europeans spend 40 percent less, and Southeast Asians spend 55 percent less. Only 3 percent of the current Asian hotel construction pipeline caters to economy travelers, suggesting a potential supply gap of rooms that could appeal to budget-constrained tourists.

While acknowledging that historical source markets will continue to constitute the bulk of travel spending, tourism players can consider actions such as these to capitalize on growing travel demand from newer markets:

• Reduce obstacles to travel. Countries can look for ways to strategically invest in simplifying travel for visitors from growing source markets. In 2017, for example, Azerbaijan introduced express processing of electronic visas for Indian visitors; annual arrivals from India increased fivefold in two years. Requirements regarding passport photocopies or in-person check-ins can similarly be assessed with an eye toward reducing red tape for travelers.
• Use culturally relevant marketing channels to reach new demographics. Unique, thoughtful marketing strategies can help destinations place themselves on first-time travelers’ bucket lists. For example, after the release of Zindagi Na Milegi Dobara , a popular Bollywood movie shot in Spain with support from the Spanish Ministry of Tourism, Indian tourism to Spain increased by 65 percent. 18 “ Zindagi Na Milegi Dobara part of syllabus in Spain colleges,” India Today , June 6, 2004.
• Give new travelers the tech they expect. Travelers from newer source markets often have access to tech-forward travel offerings. For example, Indian travelers can travel anywhere within their country without physical identification, thanks to the Digi Yatra app. The Southeast Asian rideshare app Grab has several helpful travel features that competitors lack, such as automated menu translation and currency conversion. Tourism stakeholders should consider how to adapt to the tech expectations of newer travelers, integrating relevant offerings that ease journeys.
• Create vibrant experiences tailored to different price points. Crafting lower-budget offerings for more cost-constrained travelers doesn’t need to result in giving them a subpar experience. Capsule hotels, in which guests sleep in small cubbies, began as a response to the high cost of accommodations in Japan, but they have become an attraction in their own right—appearing on many must-do lists. 19 Philip Tang, “24 of the best experiences in Japan,” Lonely Planet, March 23, 2024.

The places you’ll go: The destinations of the future may not be the ones you imagine

The world’s top ten destination countries (the United States, Spain, China, France, Saudi Arabia, Türkiye, Italy, Thailand, Japan, and India, in that order) currently receive 45 percent of all travel spending, including for domestic travel. But some new locales are gaining traction (Exhibit 5).

A significant number of travelers are expanding their horizons, booking journeys to less visited countries that are near to old standbys. For instance, Laos and Malaysia, which both border Thailand—an established destination that is home to Bangkok, the world’s most visited city 20 Katherine LaGrave, “This is the world’s most visited city,” AFAR , January 31, 2024. —are up a respective 20 percent and 17 percent, respectively, in year-over-year international travel spending.

The world’s top ten destination countries currently receive 45 percent of all travel spending, including domestic-travel spending. But some new locales are gaining traction.

Several other countries that have crafted thoughtful tourism demand generation strategies—such as Peru, the Philippines, Rwanda, and Vietnam—are also expected to reap benefits in the coming years. Vietnam logged a remarkable 40 percent increase in tourism spending in the five years before the pandemic. Postpandemic, it has rebounded in part by waiving visa requirements for European travelers (while indicating intent to offer similar exemptions in the future for Chinese and Indian travelers). 21 Ashvita Singh, “Vietnam looks to offer visa-free entry to Indians: India report,” Skift, November 20, 2023. The Philippines has made a concerted effort to shift its sun-and-beach branding toward a more well-rounded image, replacing its long-standing “It’s more fun in the Philippines” tourism slogan with “Love the Philippines.” Peru is highlighting less visited archeological sites while also marketing itself as a top-notch culinary destination through the promotion of Peruvian restaurants abroad. Rwanda is investing in infrastructure to become a major African transit hub, facilitated by Qatar Airways’ purchase of a 60 percent stake in the country’s major airport. 22 Dylan Cresswell, “Rwanda plots ambitious tourism recovery,” African Business , July 28, 2022. Rwanda has also successfully capitalized on sustainable tourism: by charging $1,500 per gorilla trekking permit, for instance, it has maximized revenue while reducing environmental impact.

Tourism players might consider taking some of these actions to lure tourists to less familiar destinations:

• Collaborate across the tourism ecosystem. Promotion is not solely the domain of destination marketing organizations. Accommodation, transportation, and experience providers can also play important roles. In Singapore, for instance, the luxury resort Marina Bay Sands partners extensively with Singapore Airlines and the Singapore Tourism Board to offer compelling tourism offerings. Past collaborations have included flight and stay packages built around culinary festivals and a Lunar New Year drone show. 23 “Singapore Tourism Board, Marina Bay Sands & UOB partner to enliven Marina Bay precinct,” Singapore Tourism Board news release, January 25, 2024.
• Use infrastructure linkage to promote new destinations. By extending route options, transportation providers can encourage visitors to create itineraries that combine familiar destinations with new attractions. In Asia, Thailand’s tourism authority has attempted to nudge visitors away from the most heavily trafficked parts of the country, such as Bangkok and Phuket, and toward less popular destinations.
• Deploy social media to reach different demographics. Innovative social media campaigns can help put a destination on the map. Australia launched its “Ruby the kangaroo” campaign in China to coincide with the return of postpandemic air capacity between the two places. A video adapted for Chinese context (with appropriate gestures and a hashtag in Mandarin) garnered more than 20 million views in a single day on one of China’s largest social media platforms. 24 Nicole Gong, “Can Ruby the kangaroo bring Chinese tourists hopping back to Australia?,” SBS, June 5, 2023.
• Embrace unknown status. “Off the beaten path” messaging can appeal to widely traveled tourists seeking fresh experiences. Saudi Arabia’s “#WhereInTheWorld” campaign promoted the country’s tourist spots by acknowledging that they are less familiar to travelers, using a series of images that compared these spots with better-known destinations.

As tourism stakeholders look to the future, they can take steps to ensure that they continue to delight existing travelers while also embracing new ones. Domestic and intraregional tourism remain major opportunities—catering to local tourists’ preferences while building infrastructure that makes travel more seamless within a region could help capture them. Creative collaboration among tourism stakeholders can help put lesser-known destinations on the map. Travel tides are shifting. Expertly navigating these currents could yield rich rewards.

Caroline Tufft is a senior partner in McKinsey’s London office, Margaux Constantin is a partner in the Dubai office, Matteo Pacca is a senior partner in the Paris office, Ryan Mann is a partner in the Chicago office, Ivan Gladstone is an associate partner in the Riyadh office, and Jasperina de Vries is an associate partner in the Amsterdam office.

The authors wish to thank Abdulhadi Alghamdi, Alessandra Powell, Alex Dichter, Cedric Tsai, Diane Vu, Elisa Wallwitz, Lily Miller, Maggie Coffey, Nadya Snezhkova, Nick Meronyk, Paulina Baum, Peimin Suo, Rebecca Stone, Sarah Fellay, Sarah Sahel, Steffen Fuchs, Steffen Köpke, Steve Saxon, Sophia Wang, and Urs Binggeli for their contributions to this article.

This article was edited by Seth Stevenson, a senior editor in the New York office.

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What you need to know about European travel this summer

With headlines warning of everything from flight delays to wildfires, summer travel is changing. Here’s how to make sure your trip this summer goes smoothly.

Record numbers of tourists are expected to visit Europe this summer. In the first three months of 2024, the number of international arrivals has already risen by 7.2% compared to 2019’s pre-pandemic figures, according to the European Travel Commission , with 120 million international tourists visiting the region in that time. Yet while this is welcome news for the tourism industry, some challenges remain for visitors, especially during the summer’s busy peak season, when potential flight delays, high temperatures, new laws and major events could all impact travel. Here’s what you need to know to make sure your European trip this summer goes smoothly.

1. What you need to know about flight disruptions

Increased passenger numbers, staff shortages and strikes meant there were 106.7 million delayed air passengers in Europe during peak summer months last year. More than 700,000 passengers were affected over the August bank holiday in the UK alone following a technical meltdown at air traffic control. This year, EasyJet has had to cancel over 100 flights from Paris due to a no-fly zone during the opening ceremony of the Olympic Games. Ryanair has also cut flights from its summer schedule after the delivery of several of its new Boeing aircraft was delayed. If you’re due to fly, visit the airport’s website for the latest information, and check social media for real-time updates from other travellers. Remember that you may be owed compensation if you face disruption, but rules vary, so take out a travel insurance policy as soon as you book flights.

( What should you do if your flight is delayed or cancelled? )

2. Why you should consider travelling by train

Keep your carbon footprint low, avoid airport hassle and see even more of Europe this summer by taking advantage of a whole host of new and expanded routes across the continent. New services include a high-speed route connecting Barcelona to Madrid and Seville , a sleeper train from Brussels to Prague , a daily train between Vilnius and Riga , a relaunched night train between Paris and Nice and a sleeper train from Rome to the Dolomites . Following the success of Germany’s €49 unlimited monthly travel pass last year, France has also introduced its own nationwide rail pass for the same price. However, this is only valid for those under 27 and excludes high-speed TGV trains and travel in the greater Paris region of Ile-de-France.

( 6 of the world’s best coastal rail journeys .)

3. What to do you if you’re affected by wildfires

Following unprecedented high temperatures, wildfires swept through some of Europe’s most popular tourist spots last summer, scorching parts of Tenerife, mainland Spain, Greece, Portugal and Italy. This year, protective measures have already been put in place that aim to prevent a repeat of the disaster, with Greece banning all outdoor fires from April and increasing investment in fire detection and water tankers. To ensure you’re protected if the worst happens, arrange travel insurance at the time of booking, then keep an eye on official travel advisories for up-to-date information. If you’re affected by wildfires or any other natural disasters when you’re away, follow the advice of the emergency services and evacuate when instructed, then contact your tour operator or airline for help getting home.

( What to do if you’re caught in a disaster while travelling. )

4. How big events could disrupt your travel  

From Taylor Swift’s tour across Europe to the UEFA European Championship in Germany, Europe is limbering up for a summer of major cultural and sporting events. The Olympic Games in Paris are expected to attract three million more visitors than usual . This is likely to mean a greater demand for accommodation, higher prices, crowded public transport, unexpected road closures and even increased security checks in response to the heightened risk of terrorist attacks. If your holiday does coincide with an event, try to explore beyond the city itself, visit nearby tourist attractions that could be quieter than normal, or just enjoy the inevitable citywide buzz surrounding the main event.

( How to explore Paris this summer beyond the Olympics. )

5. Why you should think about overcrowding

While many destinations welcome a return to pre-pandemic levels of tourism, others are actively trying to deter visitors. In Barcelona , tour groups have been capped at 20 people, while entrance to Athens’ Acropolis is now limited to 20,000 tourists each day. Dubrovnik has already cut the number of souvenir stands by 80%, while thousands attended an anti-tourism protest in Santa Cruz de Tenerife in April. All are concerned that overcrowding leads to skyrocketing prices for locals and causes environmental damage, with increased plastic pollution, erosion of heritage sites and traffic congestion. Consider less-visited destinations instead, swapping Santorini for Folegandros an hour’s ferry ride away, Dubrovnik for Šibenik with its medieval centre and fortress, or Barcelona for the Spanish seaside city of Valencia.

( What’s the problem with overtourism? )

6. How to deal with heatwaves

2023 was the hottest year on record globally, with temperatures in Europe above average for 11 months of the year. The Mediterranean was the worst area affected, with temperatures soaring above 40°C across Italy, Spain, Turkey, Cyprus and Greece. Consider travelling outside the hottest months, between July and September, or visiting destinations further north such as Denmark, Germany, Belgium, Lithuania or Ireland which should escape the most intense heat. If temperatures do climb, wear high-factor SPF, avoid being outside in the middle of the day and wear light-coloured clothes made from breathable materials. Avoid alcohol and drink plenty of water, and keep a close eye on vulnerable people, including young children and the elderly.

7. How to avoid being caught out by local laws and taxes

Do your research before travelling to make sure you don’t fall foul of new laws. A €5 tax for day-trippers was introduced in Venice in April, for example, and will be enforced on selected dates until July. It can be paid online in advance, and those staying overnight are exempt but do still need to register. A second tourist tax of €1 to €5 per night is already applicable to overnight stays and should be paid at your hotel. Be aware that some Airbnbs ask that this is paid in cash. Other new rules in parts of Mallorca and Ibiza ban drinking on the street and prevent shops selling alcohol at night, though you will still be able to buy drinks in bars and restaurants.

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Europe Travel Insurance Market

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Europe Travel Insurance Market, By Category (Domestic, International); By Type (Single-Trip Travel Insurance, Multi-Trip Travel Insurance, Extended Travel Insurance); By Distribution Channel (Insurance Companies, Insurance Intermediaries, Banks, Insurance Aggregators, Insurance Brokers); By End User (Senior Citizens, Health Travelers, Education Travelers, Business Travelers, Family Travelers); By Coverage (Medical Expense, Trip Delay, Trip Cancellation, Property Damage, Theft/Loss); By Country (Germany, United Kingdom, Italy, France, Spain, Belgium, Russia, the Netherlands, Rest of Europe), Competitive Landscape & Forecast, 2019–2029

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