More tourists, but less spending per capita in Greece in 2024.
More visitors, less spending
Greece expects a surge in tourism, with up to 38 million holidaymakers projected for this year. This marks a significant increase of 5 million compared to 2023. Despite the rise in visitor numbers, revenue appears to be levelling off.
The Bank of Greece reports that tourists are spending 12.2% less per person this year compared to last. However, some nationalities are bucking this trend. German visitors are the most generous spenders, splashing out €107 per night during their Greek holidays.
Top-spending nationalities:
- Germany
- France
- United Kingdom
- Spain
These four countries collectively contribute over 40% of Greece’s total tourism income. This highlights the importance of attracting high-value tourists to maintain revenue levels, even as overall visitor numbers climb.
How much are Britons spending on holidays?
Recent data from Barclays reveals a significant uptick in travel expenditure by UK residents in July. This trend stands out amidst overall consumer spending patterns.
Travel agencies saw a 6.6% rise in spending, coupled with a 10.5% increase in transactions. This surge coincided with many Britons making their final monthly holiday payments.
While overall card spending in July dipped by 0.3% year-on-year, this was a slight improvement from June’s 0.6% decline. Transactions, however, grew by 1.1%.
Non-essential spending decreased by 0.7% annually, but transactions rose by 1.3%. The travel sector as a whole experienced a 4.3% boost in spending and a 5.6% increase in transactions.
Here’s a breakdown of spending across different travel categories:
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- Spending: +0.8%
- Transactions: +0.6%
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Public transport:
- Spending: +0.2%
- Transactions: +0.6%
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Other travel:
- Spending: +7.1%
- Transactions: +17.8%
It’s worth noting that two out of five people (39%) reported reducing their “summer spending” due to July’s rainy weather. Despite this, Karen Johnson, head of retail at Barclays, expressed optimism about the steady recovery in beauty purchases and holiday planning.
The data suggests that Britons are prioritising travel despite economic pressures. The increase in travel agency spending indicates a preference for package holidays or expert assistance in planning trips.
The rise in transactions across all travel categories points to more frequent, possibly shorter trips rather than fewer, more expensive holidays. This could be a strategy to spread out holiday costs throughout the year.
The substantial growth in “other travel” spending and transactions is particularly noteworthy. This category might include accommodation, car rentals, or local experiences, suggesting that Britons are diversifying their holiday activities.
Public transport spending saw the smallest increase, which could indicate a preference for private or more flexible travel options. This might be influenced by ongoing concerns about crowded spaces or a desire for more personalised travel experiences.
The airline sector’s modest growth might reflect a combination of factors:
- Increased competition leading to lower fares
- A shift towards domestic or short-haul flights
- Rising airfares offset by fewer, but more expensive, flights
The impact of July’s inclement weather on summer spending highlights the importance of weather conditions on holiday decisions. It’s possible that some Britons opted for last-minute overseas trips to escape the rain, contributing to the spike in travel agency transactions.
Looking ahead, there’s cautious optimism for strong summer spending in August. Factors that could influence this include:
- Pent-up demand from those who delayed travel plans due to July’s weather
- Last-minute bookings for those seeking guaranteed sunshine
- End-of-summer deals offered by travel companies
The resilience of the travel sector amidst overall spending declines suggests that holidays remain a priority for many Britons. This could be driven by:
- A desire for experiences over material goods
- The psychological benefits of travel after periods of restriction
- Perception of holidays as a necessary rather than luxury expense
It’s important to consider that these figures represent card spending data from one bank. While indicative of broader trends, they may not capture the full picture of UK holiday spending. Cash transactions, spending through other banks, and pre-paid travel cards could alter the overall landscape.
The data also doesn’t reveal the destinations of these trips. It would be interesting to know if Britons are favouring domestic breaks, short-haul European destinations, or venturing further afield.
For travel businesses, these trends offer valuable insights:
- Focus on flexible booking options to cater to weather-dependent decisions
- Enhance “rainy day” offerings for domestic holidays
- Develop last-minute deal strategies for summer months
- Invest in digital platforms to capture the increase in online transactions
For consumers, the data suggests a few key points:
- Planning and booking holidays remains a priority despite economic pressures
- There’s a trend towards more frequent, potentially shorter trips
- Weather plays a significant role in holiday decision-making
As the summer progresses, it will be interesting to see if these spending patterns continue or shift. Factors such as exchange rates, geopolitical events, and changes in travel restrictions could all impact future holiday spending behaviour.
The resilience of holiday spending amidst broader economic challenges highlights the value Britons place on travel and leisure. It suggests that even in times of financial pressure, many are finding ways to prioritise and budget for holidays.
This trend could have wider economic implications, supporting jobs in the tourism and hospitality sectors both domestically and in popular holiday destinations. It may also influence retail spending patterns, with more money allocated to travel-related purchases like luggage, summer clothing, and travel accessories.
As we move into the latter part of the summer season, travel companies and tourism boards will likely be keen to capitalise on this apparent willingness to spend on holidays. We might see an increase in targeted marketing campaigns and tailored holiday packages designed to appeal to different segments of the UK market.
