Rising prices won’t hinder Europe’s travel recovery | Oxford Economics Skip to content
Research Briefing | September 25, 2023
Services inflation in the eurozone remains strong, with prices for travel-related items such as international flights and hotels rising sharply this year.
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Package holidays have risen in line with inflation this year due to the high cost of living, and are becoming more popular with both low- and middle-income households. Consumers continue to prioritize spending on travel this year, with European visitor numbers just 3.8% below 2019 levels on average so far this year. However, the increase in spending on travel services such as restaurants and hotels has been significantly lower than other expenses such as housing, utilities and food. High inflation has not had a significant impact on travel destination choices. Destinations that saw similar inflation rates in Q2 2023 saw mixed rates of recovery in overnight stays. Recent price increases may not be sustainable and should moderate. In destinations that saw a surge in visitors this year, rising variable costs such as food will naturally lead to higher prices across all tourist attractions. Return to Resource Hub
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