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Intra-European travel leads 2025’s revenue gains

  • phocuswright.com
  • 22 August 2025
  • 1 minute read
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This article was written by Phocuswright. Click here to read the original article

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Economic pressures and geopolitical uncertainties continue to impact the European macroeconomic environment, but resilient demand continues to fuel the market in 2025. European travelers expect to take more international leisure trips and business trips on average compared to 2024, including an uptick in hybrid travel that combines work and leisure.

Despite economic challenges and continued issues with overtourism in destinations like Barcelona and Venice, moderate growth is projected. European stakeholders are prioritizing sustainability and digital efficiency, including AI-powered travel services expected to increase personalization. Although long-haul recovery remains uneven, intra-European travel and niche experiences will drive revenue gains in 2025.

Total travel gross bookings increased 6% in 2024 to €347 billion. Growth is expected to moderate to 4-5% through 2028, when gross bookings will reach €415 billion. Online leisure/unmanaged business travel growth continues to outpace the overall market, with online gross bookings increasing 11% in 2024 to reach €236 billion.

These gains brought European online travel penetration in 2024 to 68%, and that share is expected to climb steadily to 74% by 2028. Online travel growth is expected to slow slightly, as some market segments—such as rail, car rental and low-cost airlines—approach saturation.

Please click here to access the full original article.

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