German travel booms despite global economic uncertainty: DRV

Holiday spending rises as budget and sustainability concerns grow
2025-06-05
/
/ New Delhi
Germans are projected to spend around EUR 85 billion on pre-holiday travel services this year
German travel booms despite global economic uncertainty: DRV

Germans are projected to spend around EUR 85 billion on pre-holiday travel services this year

Despite global economic stagnation, German holiday spending is rising in 2025, with strong demand for package tours and cruises. Cost sensitivity has grown, but travel remains a priority over sustainability.
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Amid global economic headwinds, trade wars, tariffs and stagnating growth, Germany’s travel sector is defying expectations. While much of the world braces for uncertainty in 2025, German consumer confidence, at least in the realm of travel and leisure, remains remarkably resilient.

In a press statement, the German Travel Association (DRV), Germans are projected to spend around EUR 85 billion on pre-holiday travel services this year, marking a robust 6 pc increase over 2024.

The statement adds that organised travel, including package and tailor-made tours, is seeing especially strong growth, with spending expected to reach EUR 40 billion, a 7 pc annual rise.

DRV says that cruises are a standout, with last year’s record of 3.8 million cruise travellers set to be surpassed in 2025.

The statement adds that traditional Mediterranean hotspots continue to dominate German holiday plans. Türkiye, with its popular all-inclusive packages, leads as the top destination, followed by Spain and Greece.

Norbert Fiebig

Norbert Fiebig

“Travelling tops consumers’ wish lists again this year, despite all the economic and geopolitical challenges. It seems travelling and holidays are the last thing Germans can do without,” says Norbert Fiebig, President, DRV.

DRV says that early bookings are up, especially among families seeking value and certainty. However, inflation’s impact is evident: Germans are increasingly cost-conscious, turning to affordable destinations like Bulgaria, Tunisia and Egypt, where prices remain relatively moderate.

“The significant rise globally in flight and accommodation costs as well as a weak economy in many countries are increasingly impacting the market,” says Zoritsa Urosevic, Executive Director, UN Tourism.

Zoritsa Urosevic

Zoritsa Urosevic

The statement adds that despite the travel boom, around 32 pc of Germans will forego a major holiday this year, up from 17 pc in 2022, as saving becomes a necessity for many households.

“Price rises are damping consumer confidence and putting a strain on the disposable income of private households. Nevertheless, we see the travel industry’s figures pointing upwards. Should the negative economic trends continue however, this will also impact travel behaviour,” says Fiebig.

According to the statement, sustainability remains a low priority, with only 20 pc willing to pay more for eco-friendly options, even as concerns about climate-related risks, like wildfires and floods, creep higher in travel decisions.

Heinz-Dieter Quack

Heinz-Dieter Quack

“In addition to current geopolitical tensions, it is the increase in weather extremes that is above all significantly impacting the development of global tourism,” says Urosevic.

“Sustainability is not driven by demand. Instead of holidaymakers, it is tour operators who must lead the way. it is not just about creating sustainable concepts and incorporating them into tourism products, but also about making them visible as part of a corporate marketing strategy,” says Heinz-Dieter Quack, Professor of Tourism Management at Ostfalia Hochschule.

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