European tourists are tightening their belts for upcoming holidays by cutting spending and planning fewer trips, according to research by travel intelligence firm Arival.
Average holiday expenditure across Europe has fallen from 3,152 euros to 2,649 euros per trip in the space of a single year. In addition to reducing their financial outlay, 29 percent of European holidaymakers plan to travel less frequently over the coming year.
The trend contrasts sharply with Latin America, where consumer appetite for travel remains resilient despite rising costs. The joint research, conducted by Arival in partnership with tourism platform Civitatis, shows that Latin American holidaymakers intend to take more trips in 2027 even as their European counterparts cut back.
Diverging travel budgets across regions
Travel demand shows a clear geographical divide heading into 2027. In Mexico, 29 percent of travelers plan to take more trips next year, while 26 percent of Brazilians also intend to travel more, according to the report. By comparison, only 13 percent of Germans and 15 percent of French travelers plan to increase their travel frequency.
Despite cutting back, German and British tourists remain the biggest individual spenders in Europe. Germans spend an average of 3,369 dollars per trip, while British holidaymakers spend 3,329 dollars, though both figures reflect smaller budgets than in previous years.
British travelers recorded one of the sharpest drops in expenditure, reducing their travel budgets by 28 percent. Spain was the only European market where tourist spending held steady in 2025.
Across the Atlantic, tourists spend less money per vacation than their European counterparts, but they stay away from home longer. Average spending per trip stands at 1,512 dollars in Argentina, 2,432 dollars in Mexico, and 2,699 dollars in Brazil. However, Argentine tourists average nine nights per trip and Brazilians average eight nights, exceeding the typical trip lengths of British or Spanish holidaymakers.
Youth travel trends and cultural preferences
Generational habits are also reshaping how travelers spend their time and money abroad. In Europe, tourists aged between 18 and 34 place equal or greater importance on adventure and experiential learning than on visiting major tourist attractions.
Cultural engagement among young Europeans has shifted toward live events, with 34 percent attending a festival, a higher proportion than visited a museum. Young European adults are also the most active bookers and heaviest spenders on activities, allocating an average of 158 euros to tourist attractions compared to just 76 euros spent by travelers aged 55 and older.
Young Latin American travelers are similarly participating in more festivals, sporting events, and immersive experiences, but without abandoning traditional sightseeing. Unlike young Europeans, travelers from Latin America maintain a strong preference for guided tours, historic monuments, and cultural landmarks.
Lesser-known destinations and off-the-beaten-path experiences continue to occupy a secondary position in the preferences of Latin American tourists, who continue to gravitate toward established cultural highlights.
Advance bookings and artificial intelligence in trip planning
The booking process has seen significant shifts, with 78 percent of European travelers now reserving their tours and experiences in advance. Same-day bookings on arrival have lost ground to digital reservations made before departure.
In Latin America, digital tools are transforming how holidays are prepared. Seven out of ten Latin American travelers have used artificial intelligence to plan a journey, a proportion that rises to 80 percent among travelers under the age of 35.
Generative tools dominate the planning stage in the region. ChatGPT leads adoption, used by 43 percent of travelers, while Google Gemini is used by 35 percent. However, artificial intelligence has made little impact on the booking stage, with only 12 percent of travelers using AI tools to purchase tickets or reserve activities.
Human recommendations continue to drive final decisions. Before making a booking, 77 percent of travelers consult advice from family and friends, while 67 percent read online reviews posted by other tourists.
Industry context and economic pressures
Arival produces research and industry events focusing on the global in-destination experiences sector, covering tours, activities, and attractions. Civitatis operates an international booking platform specializing in Spanish-language guided tours and activities worldwide.
The findings highlight diverging economic pressures on consumers. While European households face elevated living costs and inflation that restrain discretionary holiday spending, Latin American travel demand reflects strong consumer eagerness to explore international destinations and stay for longer periods.
