As summer approaches, Europeans are once again preparing for their annual holidays, but the landscape of travel has shifted. Rising jet fuel costs, flight cancellations, and economic uncertainty are forcing many to reconsider how and where they vacation. Yet, according to recent data, the appetite for travel remains strong.
The Mastercard Economics Institute's Travel Trends Report 2026 reveals that Europe continues to attract robust global demand, with cities like Paris, Amsterdam, and Brussels leading in scheduled international seats. Barcelona, Madrid, and Frankfurt also show significant gains. Natalia Lechmanova, Chief Economist Europe at Mastercard, notes: "Against a backdrop of continued geopolitical uncertainty, Europe's travel economy has shown resilience thus far." However, affordability is now a key driver in travel decisions, with rising transport and accommodation costs, fluctuating exchange rates, and stagnant income growth shaping choices.
A Europ Assistance Holiday Barometer survey of 26,000 people, conducted with Ipsos, found that 77% of Europeans are sticking to their summer travel plans. The UK and Portugal lead with 84% and 82% of respondents planning trips, while even in Germany and Belgium, where enthusiasm is lower, 70% and 72% still intend to travel.
Air Travel vs. Rail: The Cost Divide
Rising airfares are a major concern. Research by savings platform Raisin shows that from Amsterdam Schiphol Airport, average fares for a family of four have increased 13.1% year-on-year, from €808 to €914. Vienna was the only surveyed destination where prices fell, dropping slightly from €987 to €968. One strategy is to opt for low-cost carriers like EasyJet, which allow passengers to pay only for what they need. A spokesperson told Euronews Travel: "40% of our customers travel having paid the fare only, which includes a small cabin bag for free."
Train travel offers a more stable alternative. Raisin found that fares from Amsterdam Central Station rose only 2.5% year-on-year, and trains were cheaper on nine out of ten surveyed routes compared to flights. Jasper Berkhout, a researcher at Raisin, advises: "On comparison sites, you can often select a box to include nearby airports in your search. For trains, it pays to book in advance; carriers like Deutsche Bahn offer a ‘Sparpreis’ with substantial discounts." The UK Post Office also recommends train travel, including Eurostar deals to Paris, Amsterdam, Brussels, and Rotterdam. The EU's proposed single-ticket system could further boost cross-border rail travel, making it easier to plan multi-city itineraries.
Package holidays are another safe bet. With thousands of flights cancelled in May due to the jet fuel crisis, Rory Boland, editor of Which? Travel, advises: "Our advice for this summer is to book a package holiday, as that is the best way to protect the full cost of your holiday should greater disruption occur."
Staying closer to home is also a cost-effective option. Eurostat data shows that 92% of the 1.19 billion trips taken by Europeans in 2024 were intra-European, and foreign trips outside the continent cost 40% more on average. The UK Post Office recommends thorough research: "Although flights to some European destinations may be cheap, the city itself might be expensive on arrival." Walking or using public transport can further reduce costs.
For those seeking value, destinations like Portugal and Greece remain popular, though costs and security concerns are factors. Meanwhile, the Iran conflict is driving German holidaymakers to the North Sea and Baltic coasts, highlighting how geopolitical events can shift travel patterns. As Europeans navigate these challenges, the key is to plan ahead, compare options, and embrace flexibility.
