Europeans are still planning to keep their travel budgets unchanged this year, despite the current economic crisis and global financial stress, according to the European Travel Commission’s (ETC) latest report on Monitoring Sentiment for Domestic and Intra-European Travel.
1. Desire to travel
The research provides insights into European travel plans in the spring and summer of 2023 and shows that most travellers (77%) intend to take a trip during the first 6 months of 2023, 16% more than last year. Travellers also show a growing desire to travel outside their own country, with 63% of respondents now favouring international trips within Europe.
Remarkably, their planned holiday budget remains unchanged, showing determination to travel despite financial uncertainty. Up 6% from a year ago, 37% of Europeans will still spend between €1,000 – €2,000 per person per trip for their next holiday. An additional 19% will spend even more, exceeding the €2,000 mark.
These trends paint a hopeful picture for the sector this year and prove its resilience in the face of global economic challenges.
Luís Araújo, ETC President
“The recent figures show that travel remains a top priority for Europeans in the first half of 2023. This is welcome news, especially considering much of the intended travel is planned within Europe. These trends paint a hopeful picture for the sector this year and prove its resilience in the face of global economic challenges. Now, to capitalise on consumer confidence and early bookings, the industry should closely follow and anticipate shifts in consumer needs and tailor its offers accordingly”, ETC President Luís Araújo commented on the research.
2. Europeans changing their habits to continue travelling
The research shows that the current financial climate remains a significant concern for travellers. Rising travel costs worry 23% of Europeans, while an additional 18% say that their personal finances and economic situation are preoccupying.
Travellers are responding to the financial challenges with a more proactive and flexible purchase behaviour. Europeans are committing to their trips earlier than a year ago, with 44% having already fully or partially booked their next holiday, a 7% increase over 2022. In choosing a destination, attractive deals and bargains (17%) are of key concern, second only to pleasant weather (18%).
Another behavioural change is in spending habits during trips. Most respondents plan to reduce their shopping at the destination (18%), book less expensive accommodation (16%) and choose more affordable restaurants (15%) to fit into their holiday budget. Purchasing all-inclusive packages and visiting fewer attractions with an entrance fee are also considered by 12% and 10% of respondents, respectively.
3. Travel budgets remain a priority
Even as energy costs soar and basic necessities such as food and clothing follow suit, travel continues to be a high priority for Europeans. Notably, travel is the only discretionary expense that people are prepared to maintain (59%) or increase (16%) spending on in today’s economic conditions. In fact, 58% of respondents plan to travel at least twice, either domestically or internationally, in the coming months.
Conversely, the outlook is not bright for retail spending on items such as electronics and clothing, as well as leisure and recreation purchases for concerts, dining out and sports. Less than half of the respondents (47%) plan to spend the same amount in these categories, while only 8% consider increasing their expenses.
