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Mastercard: travelers choose the intermediate periods for their holidays in Europe | Greece is among the countries affected | Corfu tops the list

TOURISM TRAVEL

Tourists holidaying in Europe are increasingly choosing to travel during the shoulder seasons rather than the high summer season of July-August, with Greece among the countries that travelers seem to prefer during the off-peak period, new research reveals. While, the island of Corfu is emerging as one of this summer’s hotspots.

Specifically, according to the Mastercard Economics Institute’s Travel Trends report, the countries with the biggest shift from the peak summer months are popular Mediterranean resorts, which, apart from Greece, include Croatia, Portugal and Italy.

However, even more northerly countries such as Denmark, Sweden, Finland and the Netherlands are seeing a shift away from the peak summer months.

“This suggests that it is not only the warmer summers that are driving this shift. Two important demographic shifts are also likely to play a role: more retirees (free from work obligations) and more households without children (free from school schedules),” the report says.

The report is based on analysis of aggregated and anonymized transaction data, including Mastercard Spending Pulse, and third-party data sources.

Increased overnight stays in Europe

According to the report, the share of overnight stays in the European Union during the intermediate period (May-June and September-October) has increased by 1.8 percentage points over the last decade.

“This shift makes it possible for European travel to continue to grow as the summer peak meets capacity constraints,” the report notes.

Notably, the number of overnight stays in Europe totaled 2.91 billion in 2023, up from 2.88 billion in 2019. The importance of US tourists has also increased in Europe: the US share of arrivals in Spain increased from 4% in 2019 to 5% in 2023, in Portugal from 6% to 9%, in the UK from 13% to 16%.

Natalia Lechmanova, Chief Economist for Europe at the Mastercard Economics Institute, commented: “Our observations reveal a noticeable shift towards the ‘mature’ seasons, as European travelers opt for the milder months of May-June and September-October, moving away from the busy peak summer season. In addition, the European experience economy is set to spring up as there is a clear trend among European tourists to prioritize immersive experiences and choose destinations that provide both value and authenticity.”

Consumers choose experiences over goods

With consumers prioritizing meaningful experiences over material goods, even when travelling, spending on experiences totaled 12% of travel sales, according to Spending Pulse Destinations, which measures in-store and online retail sales across all forms of payment – the highest point in at least five years.

UK travelers tend to spend one in every six dollars on experiences and nightlife, compared to the global average, which is closer to one in 10 dollars.

Meanwhile, the report found that tourists in Europe have spent an average of two extra days on holiday – higher than the global average of one extra day per trip – with the trend attributed to affordable prices and warmer climates. “For every additional 6 degrees Celsius of temperature, the estimated increase in length of stay is about 1 day,” the report said.

The report notes that tourism continues to perform better in European countries, driven in part by American travelers. The travel industry in Europe “shines” as one of the most resilient sectors of the European economy, with demand for travel remaining strong despite inflation and higher interest rates following the pandemic.

The top European destinations this summer and the most expensive

In Europe, Munich is ranked as the top popular destination for this summer (June-August 2024), as the city is set to host a major world sporting event in June. It is followed by Tirana (Albania), Nice (France), Corfu (Greece) and Istanbul (Turkey).

In 2024, the cheapest seaside destinations of Albania, Croatia and Turkey record some of the highest increases in air traffic. Tourism in Albania is growing particularly strongly, with the number of air routes doubling from 2019 and tourist arrivals increasing from 12 million in 2019 to 17 million in 2023.

More than half of the 20 most expensive summer destinations in Europe are located in Italy, along the Adriatic Sea, such as Taormina, Rimini, but also coastal towns near Venice, such as San Michele al Tagliamento, Jesolo, Caorle or Lignano. Also, French villages on the Côte d’Azur (Ramatuelle, St Tropez and Cannes) have earned places in the top 20 luxury destinations. While the ‘most affordable’ destinations on the Old Continent are capitals such as Bucharest, Warsaw, Budapest and Prague as well as Spanish beach resorts such as Costa Brava and Costa del Sol.

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