If playback is interrupted, you can restart it.
Despite record tourism numbers and booming international travel, millions of families in Europe, Australia, and other developed economies are discovering that taking even a one-week vacation has become increasingly difficult.
The global travel industry has celebrated a remarkable recovery since the pandemic, with airports reporting record passenger numbers, hotels filling up, and destinations welcoming millions of visitors once again.
But beneath those impressive tourism statistics lies a growing reality that deserves more attention.
For millions of households in some of the world’s wealthiest countries, taking a simple one-week vacation away from home has become financially out of reach.
New figures released by Eurostatreveal a surprising picture of travel affordability across the European Union. While international tourism continues to expand, a significant share of Europeans remain unable to afford even one annual holiday.
Romania Tops an Unwanted Ranking
Romania recorded the highest level of travel deprivation in the European Union.
According to Eurostat, 61.4% of Romanians aged 16 and older said they could not afford a one-week annual vacation away from home in 2025.
The country was followed by:
- Greece – 46.6%
- Bulgaria – 39.1%
- Hungary – 39.1%
Across the European Union as a whole, 27.5% of residentssaid they could not afford one week away from home.
While that average increased slightly from 2024, the longer-term picture has improved. Compared with 2015, the share of Europeans unable to afford an annual vacation has fallen by nearly eight percentage points.
Still, more than one in four Europeans remain priced out of one of modern life’s most valued experiences.
The Other Side of Europe
The picture changes dramatically in Northern and Western Europe. Luxembourg recorded the lowest share of residents unable to afford an annual vacation, at just 10.6%.
It was followed by:
- Sweden – 12.4%
- Netherlands – 12.8%
These figures illustrate the significant differences in purchasing power, wages, and household financial resilience across Europe.
A Global First-World Challenge
The issue extends well beyond Romania—or even Europe. Across many developed economies, rising living costs are forcing households to reconsider travel plans.
Higher housing costs, mortgage payments, food prices, energy bills, insurance premiums, childcare expenses, and inflation have significantly reduced disposable income.
For many middle-income families, vacations are no longer canceled because people do not want to travel. They are canceled because families simply cannot afford them.
Australia: Travel Dreams Meet Cost-of-Living Reality
Australia offers a striking example.
Although Australians are among the world’s most enthusiastic travelers, domestic holidays have become increasingly expensive.
- Airfares remain elevated on many routes.
- Accommodation prices have climbed sharply.
- Car rentals, dining, and fuel costs continue to rise.
Combined with high mortgage repayments and persistent inflation, many households are shortening vacations, traveling closer to home, or postponing trips altogether.
Tourism operators have noted growing demand for shorter getaways instead of traditional week-long holidays.
The Cost-of-Living Crisis Is Changing Travel
Across Europe, North America, Australia, and New Zealand, consumer surveys increasingly reveal similar patterns.
Households are:
- taking fewer vacations,
- shortening trips,
- booking later,
- traveling during off-peak periods,
- choosing domestic destinations,
- visiting friends and relatives instead of hotels,
- or skipping vacations entirely.
- For younger travelers, home ownership and rising rents often compete directly with travel budgets.
- For retirees, inflation has reduced spending power.
- For families with children, school holiday price surcharges make travel especially expensive.
Tourism’s Hidden Challenge
Ironically, the travel industry itself is contributing to higher prices.
Strong post-pandemic demand has pushed hotel rates, airline fares, cruise prices, and attraction admissions to historic highs in many destinations.
- Luxury tourism continues to flourish.
- Budget travel, however, has become increasingly difficult.
Many destinations now actively target higher-spending visitors to maximize tourism revenue while reducing visitor numbers.
While economically understandable, this strategy risks excluding middle-income travelers—the very people who built mass tourism over the past half century.
Travel Is More Than Leisure
Eurostat uses the ability to afford a one-week annual vacation as an indicator of living conditions and material deprivation.
The reasoning is straightforward. Vacations are not merely discretionary spending. They contribute to physical and mental health, family relationships, education, cultural understanding, and overall quality of life.
Research consistently shows that time away from work reduces stress, improves well-being, and strengthens social connections.
For children, travel often provides educational experiences that classrooms cannot replicate.
What Can Be Done?
The challenge is not simply lowering hotel prices or airline fares.
Governments, tourism boards, and the private sector increasingly face broader questions:
- How can travel remain accessible to average families?
- Should destinations encourage affordable tourism alongside luxury markets?
- Can domestic tourism programs help residents discover their own countries?
- Should governments offer tax incentives or vacation savings programs?
- Can employers encourage paid holidays that workers can realistically afford to use?
Some countries have experimented with tourism vouchers, subsidized domestic holidays, or discounted rail travel.
Others are investing in regional tourism to reduce travel costs while supporting local economies.
An Industry That Depends on Travelers
Tourism contributes more than 10% of global GDP and supports hundreds of millions of jobs worldwide.
Yet the industry’s long-term success depends not only on attracting affluent international visitors but also on ensuring that ordinary households continue to participate in travel.
If vacations become a luxury reserved primarily for higher-income families, tourism risks losing one of its greatest strengths: its ability to connect people across cultures and create experiences accessible to broad segments of society.
The Eurostat figures are therefore about much more than holidays.
They are a reminder that in many of the world’s wealthiest economies, the cost-of-living crisis is quietly reshaping how—and whether—people travel at all.
As tourism celebrates record recovery, perhaps its next challenge is ensuring that travel remains something ordinary families can still afford.
Leave a Comment