Five out of Ten Germans Plan to Reduce Vacation Spending
Consumers express desire to cut travel expenses, with roughly 20% aiming for vacation cost reductions. - Consumers Express a Desire to Scale Back Holiday Spending, According to Recent Research
There's a palpable shift in the way German vacationers budget their trips as economic uncertainty and higher travel costs loom large. A significant 54% of respondents are affected by the escalating costs while booking their getaways, and 45% consider the political climate at their destination before making a decision.
Families with three to four members are more concerned about budget and security issues than their smaller counterparts, according to BTW's study. surprising fact, one in every seven German residents have decided against vacationing at all this year.
Those on the move, however, are anticipated to embark on travel destinations both near and far, with close to half planning a trip within Germany. The remaining half, European and North African destinations, are top picks, while 7% aspire to visit Asia or Oceania, and 5% hope to explore the Americas.
The summer continues to be the peak season for vacations, with about two-thirds envisioning their most extended trips between June and September. Preoccupied with potential natural disasters and climate extremes like heatwaves, wildfires, and floods, 30% of respondents admitted these concerns influence their booking and travel behavior.
The research project was carried out by BTW and YouGov between May 19 and 21, boasting a representative sample of 2,020 respondents that span the entire adult population.
Vacation Economics
- German travelers have become more money-conscious due to economic uncertainty and the rising cost of traveling. As a result, families are opting for shorter trips (4-9 nights) and selecting budget-friendly options.
- Despite financial pressures, Germans still hold travel in high regard, with pre-trip travel services projected to exceed €85 billion in 2025, a 6% increase from 2024. Spending on organized travel, including package holidays and personalized tours, is expected to top €40 billion in 2025, representing a 7% year-over-year growth[1][3].
- One out of five Germans is planning to spend less on vacation compared to last year, and there's a noticeable trend towards fewer and shorter holidays, especially for families with one or two children[1][3].
Destination picks
- Domestic travel remains a robust choice, with half of the German populace planning at least one domestic trip. Europe and North Africa also rank high among preferred destinations, with more than half of the respondents intending to travel there[1][4].
- Travel preferences for long-haul locations have shifted from the Americas to Asia. Approximately 7% of Germans plan to travel to Asia this year, signifying a substantial year-on-year increase, while only 5% aim to visit the Americas[1].
- Affordable destinations, such as Bulgaria, Tunisia, Egypt, and the Balkan countries (particularly Montenegro and Albania), are gaining traction, alongside more traditional favorites like Turkey, Spain, and Greece[3].
- Wellness, nature, and experiential travel are growing in popularity across Europe, with destinations like Italy and Poland seeing increased demand for wellness experiences. Cities like Istanbul, Cannes, and Interlaken are attracting food enthusiasts worldwide[2].
Booking factors
- Global politics and economic instability concerns are shaping vacation decisions, pushing travelers towards more cautious and calculated booking patterns[1][3].
- Affordability is a top priority for one-third of Germans, which explains the rising popularity of all-inclusive packages and value-conscious destinations[3][4].
- Experiential and wellness travel continue to be significant drivers for vacation bookings, with two-thirds of Europeans (many of whom are Germans) focusing on bucket-list activities and special experiences[2].
- While sustainability is still considered, affordability eclipses sustainability for the majority of German travelers when making travel choices[3].
| Trend/Concern | Details ||------------------------------|----------------------------------------------------------------------------------------|| Vacation Spending | Shorter, budget-friendly trips; increased spending on organized travel; less frequent holidays[1][3] || Destination Choices | Domestic, European, and North Africa popular; shift toward Asia; affordable destinations rising[1][3] || Booking Influences | Economic/geopolitical uncertainty; value for money; experiential travel[1][2][3] |
In the face of economic pressures, German holidaymakers are favoring shorter, budget-conscious trips, all the while maintaining their desire for memorable, meaningful experiences and exploration beyond their borders[1][2][3].
- The economic uncertainty and rising travel costs have led many German vacationers to prioritize budget-friendly options for their trips, opting for shorter vacations of 4-9 nights [Vacation Economics].
- Despite the financial constraints, Germans continue to value travel, with pre-trip travel services expected to exceed €85 billion in 2025, and spending on organized travel, including package holidays and personalized tours, projected to surpass €40 billion in 2025 [Vacation Economics].
