Spending Squeeze Fails To Curb Europe's Summer Travel Plans

Despite financial limitations to families and individuals as a result of the European Sovereign Debt Crisis, Europeans' enthusiasm for summer travel remains high, as reported in the 2024 Allianz Partners International Summer Vacation Confidence Index. Financial difficulties are the main reason 55% of those not travelling want to stay home.

However, 83% of the respondents still intend to travel between June and September. The survey, conducted by OpinionWay for Allianz Partners, included 9,497 people from France, Germany, the UK, Italy, Spain, the Netherlands, Austria, Switzerland, and Poland.

The Index, which also reports a geographical divide when it comes to concern over travel costs, with countries in Western and Southern Europe perceiving money to be the main barrier to travel: Italy (72%), Spain and the UK (both at 66%), and France (61%). Countries from Central Europe expressed lower levels of concern over money: the Netherlands (41%), Switzerland (44%) and Austria (47%).

The research revealed a geographical divide in travel spending plans for this season. Compared to summer 2023, many travellers in Western and Southern Europe are more cautious, planning to reduce their travel expenses. For example, Spanish travellers aim to cut their travel budget by 40%, from €1,715 to €1,019, while the French plan to decrease theirs from €1,884 to €1,677. Conversely, travellers in Austria and Switzerland are increasing their budgets by €300, and those in the Netherlands, Germany, and Poland are also planning slight increases of nearly €200.

Joe Mason, Global Head of Product Management and Innovation, at Allianz Partners says: “High living costs may still be front-of-mind in Summer 2024, but travel intentions are high once again – continuing the post-pandemic trend. It’s clear that the traditional holiday season remains an important moment to take some time out to experience new things. Desire to travel is extremely strong across Europe – but our data shows that travelers are having to tighten their belts to make their summer holidays happen this year.  

“Some exciting and innovative new travel trends are also beginning to emerge, many of which were explored at the recent Allianz Partners’ Global Travel Summit, which focused on reimagining travel. Community-based tourism, innovations in medical care, and adventure travel are all trends that are stimulating the travel industry. With the right investment and support, such initiatives can bring travel to life in a lasting way for both travellers and the communities they visit.

“In the meantime, concern over climate change, personal safety and security is leading to a more conscientious approach from travellers. If that means spending a little extra to reduce their carbon footprint, that’s something that many are willing to do. That conscious spending is also evident in the heightened demand for travel insurance. Awareness of the unpredictability of life – and the notion of ‘travel tension’ – has risen since the pandemic and, as a consequence, travel insurance is increasingly being considered by travellers.”

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