Italian travel market reaches €30 billion as inbound tourism soars to record highs | News
A new Phocuswright report shows that the Italian travel market reached €30 billion in gross bookings by 2025, up 4.5% year on year, while inbound tourism reached a record high. New data from Phocuswright’s Italy Travel Market Brief 2026 shows a market defined by strong demand, rapid digital adoption and continued structural evolution across hotels, airlines and rail.
The findings come ahead of Phocuswright Europe, taking place from June 15 to 17 in Barcelona, where Phocuswright analysts will share deeper insights on broader European trends, and leaders will discuss the key forces shaping travel.
Tourism volume reached 476 million overnight stays in 2025, an increase of 10 million compared to the previous year. Foreign visitors accounted for most of the growth, while domestic traffic remained stable.
Digital channels now account for 58% of all bookings, while mobile is responsible for more than half of that activity.
Low-cost carriers continue to reshape the aviation landscape. In summer 2025, they captured 61% of total capacity, up from 48% in 2019. Their expansion has increased connectivity with secondary cities and helped boost inbound demand.
Hotels remain the largest segment in terms of gross bookings, with room revenue reaching €19.1 billion in 2025. Investment activity is accelerating, with total hotel investment exceeding €2.5 billion in 2025, up 19% year-on-year, as international investors focus on both gateway cities and emerging luxury destinations. Airlines and tour operators are also expanding, driven by the growth of low-cost carriers and the strategic repositioning of ITA Airways, which posted its first profit in 2025 following Lufthansa’s acquisition of a 41% stake. Rail transport continues to gain ground, with gross bookings reaching €4.3 billion and online penetration rising to 64%.
“476 million overnight stays is a record, but the more telling number is where the growth is coming from,” said Pete Comeau, managing director at Phocuswright. “Foreign visitors were the driving force behind the increase, while domestic demand remained broadly flat. Italy is increasingly an inbound story, and with foreign visitor spending reaching €57 billion by 2025, the market’s dependence on international demand is both its greatest strength and greatest vulnerability heading into a period of geopolitical uncertainty.”
Phocuswright’s Italy Travel Market Brief 2026 provides top-level insights on market size, segment performance and the trends shaping the Italian travel economy.
Phocuswright Europe 2026 will bring together senior leaders in Barcelona in June for executive interviews, research presentations and discussions on the trends driving Europe’s travel economy. Registration and program details are available at www.phocuswrighteurope.com.
