BERLIN – Germany’s travel market is entering the 2025 summer season with remarkable dynamism. Wanderlust among Germans is stronger than it has been in years. However, under the influence of a weak economy and rising prices, the effects of climate change are increasingly being overlooked. As the world’s leading travel trade fair, ITB Berlin provides insight into current developments and shifts the focus to new market challenges and opportunities.

Robust Travel Demand Despite Economic Headwinds

Trade disputes, tariff barriers, and economic stagnation – while the global economy in 2025 is marked by uncertainty, German consumer sentiment remains surprisingly resilient, at least when it comes to travel and recreation. Despite the difficult economic climate at home, summer holidays continue to be a high priority for German citizens.

According to estimates by the German Travel Association (DRV), Germans are expected to spend around €85 billion on travel services before departure in 2025 – a substantial six percent increase from the previous year. Particularly strong is the growth of the organized travel market, including package and modular tours. Industry expectations suggest that nearly €40 billion – seven percent more than in 2024 – will be spent on offerings from tour operators, bringing organized trips almost level with individually arranged vacations.

A key growth driver in the German travel market is the booming interest in cruises. In 2024, river and ocean cruises attracted a record 3.8 million German vacationers, and this figure is expected to continue rising in 2025.

Destinations, Prices, and New Dynamics

German travelers remain predictable in their destination preferences for summer 2025. Popular warm-weather destinations along the Mediterranean are once again in high demand, with an increasing number of early bookings. Families in particular are contributing to another revenue increase for Turkey, thanks to its extensive all-inclusive offerings. Turkey remains the top-selling destination for flight-inclusive package holidays, followed by Spain and Greece.

“Travel remains a top consumer priority this year – despite all economic and geopolitical challenges. Holidays are the last thing Germans are willing to give up,” summarizes DRV President Norbert Fiebig.

This optimistic sentiment in the German market contrasts with international trends, which show declines across many sectors of the tourism value chain. “Significantly higher global costs for flights and accommodations, along with weak economic conditions in many countries, are increasingly being felt in the market,” observes Zoritsa Urosevic, Executive Director of Tourism at the United Nations.

Nevertheless, the strong booking numbers in Germany cannot hide the fact that even here, inflation is taking its toll. While around one-quarter of Germans plan to spend more on holidays this year, there is growing price sensitivity in destination choices. Traditionally lower-cost countries like Bulgaria and Tunisia are gaining popularity. Egypt, which has seen only moderate price increases, is also experiencing growing demand. Less-established and more affordable Balkan destinations such as Montenegro and Albania are seeing a moderate rise in bookings as well.

According to the ADAC Travel Monitor, one in three Germans is now facing financial constraints when planning a summer vacation. At the same time, the share of people who want to travel but can barely afford it is increasing. In 2025, about 32% of Germans will forgo a major holiday entirely – up from only 17% in 2022.

“Rising costs are dampening general consumer sentiment and putting pressure on household disposable income. Still, the travel sector is showing upward trends. However, if negative economic developments continue, this will inevitably affect travel behavior,” warns DRV President Fiebig.

Between Sustainability Aspirations and Reality

Wherever vacation decisions are increasingly dictated by price, qualitative factors often take a back seat. Sustainability considerations—such as eco-friendly travel options or mobility choices at the destination—remain low on the list of booking priorities. According to the ADAC Travel Monitor, only about one-fifth of people are generally willing to pay extra for sustainable add-ons like local products.

At the same time, however, the desire for intact environmental conditions at destinations is higher than ever. Eighteen percent of respondents now consider the risk of natural disasters—such as wildfires, floods, or extreme weather—when planning their vacation. This marks an increase from 14% in 2022.

Such concerns are expected to grow further under the ongoing pressure of climate change. “Beyond the current geopolitical tensions, it is primarily the increasing weather extremes that significantly impact the global tourism industry,” notes UN Director Urosevic. [Here is the full video interview with Zoritsa Urosevic, Executive Tourism Director at the United Nations, on “Risks and Opportunities in Global Tourism.”]

So far, climate-related events—like floods in the Valencia region or last summer’s unusual heatwaves in parts of the Mediterranean—have had only a marginal effect on booking patterns. A significant shift away from Mediterranean destinations in favor of Northern Europe has not been observed, likely due to the substantial price differences between Scandinavian and Southern European holiday spots.

Industry Responsibility

Current booking behavior confirms a trend that is likely to intensify amid economic uncertainty and stagnating purchasing power. More and more travelers are caught in a conflict between their sustainability ideals and actual behavior. Even though awareness of environmental issues appears to be growing, this is rarely reflected in consumer decisions. For most travelers, destination appeal and price remain far more important than environmental concerns—a phenomenon referred to in academia as the “attitude-behavior gap.”

Given this, it is unlikely that tourists will be motivated toward more sustainable behavior solely through pricing signals. Scholars like Heinz-Dieter Quack, Professor of Tourism Management at Ostfalia University of Applied Sciences, argue that the responsibility lies with industry providers: “Sustainability is not driven by demand. It’s not the tourists, but the travel companies who must take the lead,” Quack insists. This involves not only developing sustainable concepts and integrating them into travel products, but also making these options visible through company marketing strategies.

When it comes to issues such as overtourism, the responsibility again lies with providers. Digital tools to manage visitor flows—or even bans on certain high-impact tourist activities in extreme cases—could help preserve environmental quality and the appeal of destinations.