Rising travel costs squeeze European summer holidays

Inflation and higher prices are tightening summer holiday budgets across Europe. In Austria, inflation hit 3.7 % in the spring, driven by higher flight costs, prompting many to shorten trips or stay home. A German study by Joybuy found that 52 % of respondents spend more than planned during the summer, with unplanned purchases and higher seasonal prices adding roughly €350 million to total overspending. At the same time, a survey by the WSI institute of the Hans‑Böckler‑Stiftung revealed that only 44 % of private‑sector employees in Germany receive a vacation allowance this summer, with marked gaps by tariff status, gender and region. In Switzerland, a Swiss Bankers survey showed a decline in the share of travellers willing to spend over CHF 6,000 on holidays, while the median travel budget shifted toward the CHF 2,000‑4,000 range and many now prefer nearby southern‑European destinations.