Europe peaks as summer favourite for travellers!

Europe's summer 2024: Summer 2024 is shaping up to be a blockbuster season for European travel, as revealed by travel intelligence provider ForwardKeys. With a 13 per cent increase in tourist arrivals compared to 2023 and European travellers extending their trips by an average of two extra days, the continent is bouncing back to pre-pandemic levels.

"The second half of the year is shaping up to be an interesting one for European travel. Sustainable travel experiences are attracting more and more people, with holidaymakers looking for green hotels and environmentally friendly destinations," Amit Jain, Founder, Magicfares told Republic Business.

Wellness holidays and spa breaks are becoming more popular, as travellers seek to unwind and rejuvenate in nature. And there's a growing interest in immersive travel experiences, where travellers can connect with local culture through hands-on activities and authentic interactions

"Platforms like Airbnb have reported a 20 per cent increase in European bookings in the past year, particularly among families and groups. Additionally, all-inclusive resorts are witnessing a 12 per cent surge in bookings, especially among family travellers. Another high-demand segment is wellness and spa retreats, projected to grow by 7 to 10 per cent in the coming year," Shanti Jain, Business Head, Happyfares told Republic Business.

Where's everyone jetting off to?

According to recent flight search data from ForwardKeys for July and August 2024, London reigns supreme as the most sought-after European destination, commanding a 5 per cent share of flight searches and experiencing a notable increase of 1.9 percentage points compared to the previous year. 

Paris follows closely behind with a 4 per cent share, enjoying a modest uptick of 0.5 percentage points. Barcelona maintains its position with a 3 per cent share, showing no change in popularity compared to 2023. Istanbul, Rome, and Milan are also amongst the top contenders, each experiencing a surge in interest with increases of 0.4, 0.7, and 0.7 percentage points respectively. However, traditional favourites like Athens, Lisbon, Madrid, and Palma Mallorca have experienced slight declines in their share of flight searches, reflecting shifting preferences amongst European travellers.

Lesser-known gems gaining popularity

But it's not just the usual suspects stealing the spotlight. Lesser-known gems like Tenerife and Izmir are enjoying a surge in interest, alongside Northern European cities like Reykjavik and Munich, where cooler temperatures beckon summer adventurers. Eastern Europe is also having its moment, with destinations like Tirana, Yerevan, and Tbilisi gaining traction amongst savvy travellers seeking both natural beauty and cultural richness.

Tenerife is boasting an increase of 0.41 percentage points compared to 2023. Izmir follows closely behind with a rise of 0.25 percentage points, while Reykjavik and Munich also capture attention with increases of 0.21 and 0.15 percentage points respectively. Funchal, Tbilisi, and Malta have also seen notable upticks in interest, each gaining popularity by 0.14, 0.09, and 0.07 percentage points. Additionally, cities like Tirana, Nice, and Yerevan are on the rise, albeit with more modest increases.

Cities cater to remote workers' needs

With the rise of the digital nomad movement, certain cities have become particularly popular places for remote workers to congregate and live-work-play. Lisbon, Barcelona, and Berlin seem to top the lists of those looking for a good mix of culture and cost.

"To accommodate the demands of remote workers, local entrepreneurs have opened coworking shared and dedicated spaces, lovely cafes with wi-fi and comfortable seating, and affordable and flexible housing options. And, to retain remote workers, cities have begun to offer visa programmes and Nomad Resident permits. Local communities have formed to connect remote workers with each other and with locals who want to host workers for cultural exchange. All of this not only contributes to the local economy, but adds to the vibrant energy of the city," Amit added.

Reaching 2019 levels?

The summer inbound travel forecast for Europe in 2024 paints a picture of a continent eagerly welcoming back tourists. Forward ticket data for July and August 2024 reveals a 13 per cent increase in arrivals compared to 2023, although the total remains 1 per cent below 2019 levels. Northern Europe is experiencing a robust recovery, with a 3 per cent increase compared to 2019 and a 13 per cent rise from 2023. 

Western Europe mirrors this trend with a 1 per cent decline from 2019 but a notable 15 per cent increase from 2023. Central and Eastern Europe, while still lagging significantly behind 2019 with a 45 per cent decrease, shows a substantial recovery with a 25 per cent increase from 2023. Southern Europe leads the resurgence, with an 8 per cent increase over 2019 and an 11 per cent rise from 2023. These figures exclude tickets to and from Russia, Ukraine, and Belarus.

Shift to value-driven tourism

Experts are forecasting a tempered pace of spending among visitors. Despite a steady flow of tourists to the continent, there's a noticeable trend of travelers exercising caution with their expenditures. This prudent approach reflects a shift in consumer behavior, as individuals opt for more deliberate spending habits in their exploration of Europe.

"Today, travellers are careful how they spend their money and demand more value for every euro they spend. There is a clear shift in spending on unessential items. Most people prefer to stay in mid-range hotels and holiday rentals and dine in low-cost local restaurants rather than indulge in luxurious experiences," Amit said.

"Beyond goods, travellers spend more on experiences and local engagements. Cultural performances, local tours, and unique experiences are more attractive and provide deeper connections with the destination. Flexible dates and travel insurance are now necessities as people anticipate travel hindrances," Amit added.

Is Europe's summer 2024 a hit?

According to a new report by the Mastercard Economics Institute, passenger traffic is soaring, and travelers are staying longer, with trips extended by an average of two extra days compared to pre-pandemic times.

The continued strong performance is partly attributed to the influx of American visitors. Trending destinations for the summer of 2024 in Europe include Munich, driven by its hosting of a major global sporting event in June. Other popular destinations cited in the report include Tirana, Nice, Kerkyra/Corfu, and Istanbul, with affordable seaside locations in Albania, Croatia, and Turkey experiencing notable growth in flight traffic.

Luxury picks vs budget gems

In terms of luxury versus budget destinations, Italy dominates the list of priciest summer destinations in Europe. Conversely, capital cities such as Bucharest, Warsaw, Budapest, Prague, along with Spanish beaches, offer more budget-friendly options for travelers. Additionally, French villages in Cote d’Azur are highlighted as luxurious destinations.

Away from Europe, the outbound travel scene is also alive with excitement, with European jet-setters increasingly setting their sights on Asian adventures. From the vibrant streets of Beijing to the serene landscapes of Osaka, Asian destinations are experiencing a surge in popularity, fuelled by improved connectivity and favourable exchange rates. Even across the pond, moderate growth in demand for US cities like Chicago and Miami is worth noting as per travel experts.