Europe is a top destination for travellers, receiving more than 50% of international tourist arrivals [1] annually, especially in the summer. From Mediterranean beaches to Alpine hiking and city breaks with standout food, history, culture and nightlife, Europe is a hotspot for summer travel.

The travel sector in Europe is benefiting from the consistent demand for experiences from consumers globally. According to the Mastercard Economics Institute , consumers are enjoying increased purchasing power as inflation has fallen below elevated wage growth across many countries, translating into higher discretionary spending. Spending on experiences, like summer holidays, is likely to remain strong.

In our latest “Did you know?” series, you can discover where tourists go for luxury, where to go on a budget and where the action is at night throughout Europe. We can also tell you what the most popular destinations for your compatriots are. Finally, we discuss the “shoulder season” phenomenon, whereby the peak travel season is widening to adjacent months. Using Mastercard aggregated and anonymized insights, we’ve got you covered [2] . Read on to find out more.

Did you know?

  • For luxury, go to the Mediterranean, especially Italy:
    • More than half of the 20 priciest summer destinations [3] in Europe are in Italy. Along the Adriatic Sea, Taormina, Rimini or several beach towns near Venice are hotspots, including San Michele al Tagliamento, Jesolo, Caorle or Lignano. The picturesque villages along the Lago di Garda such as Riva del Garda, Bardolino or Lazise as well as Arzachena in Sardinia are also popular.
    • On the other side of Adriatic Sea, Croatia is home to luxurious escapes including Umag, Porec and Rovinj.
    • The perennially chic villages along the Cote Azure in France such as Ramatuelle, Saint Tropez and Cannes have earned their places in the top 20 luxurious locations.
    • Greek destinations such as Kassandra and the island of Mykonos also draw more affluent travelers.

  • The most affordable international summer destinations are capital cities and Spanish beaches:
    • Central and Eastern European cities like Bucharest, Romania; Warsaw and Krakow, in Poland; Budapest, Hungary; or Prague top the bargains list while offering travelers the chance to explore arts, culture, historic sites and local cuisine.
    • Reaching beyond Central and Eastern Europe, cheaper yet cheerful cities to visit in the summer are: Dublin; Madrid; Helsinki or Brussels.
    • For budget-friendly beach holidays, Spanish towns along Costa Brava or Costa del Sol, Ayia Napa in Cyprus and the island of Zakynthos in Greece are popular.

  • The best nightlife is in the cities:
    • European cities, including London, Paris, Barcelona, Spain, Dublin, Amsterdam, Lisbon, Portugal, Rome and Copenhagen, Denmark have the most vibrant nightlife scene in the summer (based on total cross-border spending between 6pm and 6am in bars, restaurants and nightclubs).
    • Spain, with its famous late-night lifestyle, is home to six of the top 20 nightlife destinations, including Barcelona, Marbella, Palma de Mallorca, Madrid and Ibiza.
    • Where to go for the best beach party? Marbella, Mallorca and Ibiza in Spain and Mykonos in Greece top the charts.

  • Want to know where your compatriots go?
    • London, Paris and Rome are the most popular destinations for travellers outside Europe, except for Latin Americans who love Madrid the most.
    • For beach destinations, travelers from the Middle East and Africa prefer Marbella, Spain, while travelers from Asia and Latin America love Mykonos, Greece.
    • Out of the top 20 largest summer spend destinations, Dublin gets the highest share of spending by U.S. tourists, followed by London and Madrid.
    • In Palma de Mallorca on the other hand, you’ll find almost exclusively European tourists.

  • Summer season is widening:
    • While our analysis focused on the peak season between July and August, we increasingly see evidence of summer season extending to adjacent months – from May to October.
    • In addition to lower costs and fewer crowds, travellers who are not bound by school holidays get to enjoy more ambient weather and forego heatwaves and wildfires.

To learn more about economic insights from the Mastercard Economics Institute , contact your Mastercard representative or request a demo. request a demo

Notes & Disclaimer

Footnotes

1 Global and regional tourism performance (unwto.org)

2 The summer season covered in this blog is July-August 2023.

3 Based on average spend per transaction by tourists.

About the Mastercard Economics Institute

Mastercard Economics Institute launched in 2020 to analyze macroeconomic trends through the lens of the consumer. A team of economists, analysts and data scientists draws on Mastercard insights — including Mastercard SpendingPulse™ — and third-party data to deliver regular reporting on economic issues for key customers, partners and policymakers.

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