Vianden castle
© Henry Smeets

LFT Travel Insights

19.06.2024Market research

LFT Travel Insights

The second Luxembourg for Tourism Quarterly Report for 2024 has been published. The latest LFT travel insights provide a comprehensive analysis of the current figures and trends in travel, including occupancy rates at hotels and campsites as well as a look at Luxembourg’s current e-reputation for positive sentiment and sustainability. This summary also includes some of the key insights into the short-term travel intent and future travel forecasts to and within Europe sourced by the European Travel Commission (ETC).

Highlights from the report include:

Hotel & Campsite outlook

  • Hotel occupancy rate forecast: 73% (May), 76% (Jun), 72% (Jul), a marginal increase of 1 point over 2023 and driven by leisure demand and higher occupancy in Luxembourg City. Less positive outlook for north and east regions, especially also for leisure. Hotel searches for future stays are 3% higher than in 2023, with business and leisure contributing equally to growth.
  • Campsite occupancy rate forecast: 54% (May), 81% (May long WE), 48% (Jun), 74% (Jul). Initially strong booking levels for May impacted by cancellations and closures of some campsites due to floods on Pentecost weekend, potentially also impacting weekend. Overall, 11% growth vs. 2023 in bookings for future camping stays. Strongest growth from The Netherlands, Belgium and UK, with a decline from Germany.

Luxembourg arrivals in paid accommodation (Jan-Mar 2024)

- Hotels +7%
- Campsites +11% 
- Youth hostels +3%
- Other paid -12%

  • Key challenges are operating costs, the economy, inflation, staffing, value for money, sustainability (the latter particularly mentioned by campsites).
  • Growth drivers: major events, workation stays and motorhome stays are becoming increasingly important
  • Outlook: 65% of hotels and 88% of campsites are expressing optimism with regard to the 2024 season.

Visitor activity in Luxembourg (Jan-April 2024 ; source: LFT)

- Tourist Infos +20% (Lux City)
- Castles +1%,
- Leisure sites -9%
- Museums +0%

Luxembourg’s e-Reputation

  • Luxembourg’s net sentiment index, measuring the polarity of travel-related online conversations, has been constantly above +80 for 10 consecutive months (on a scale from -100 to +100), exceeding the European benchmark. In April, positive sentiment was driven by culture, events, and food and wine.
  • Sustainability perception of Luxembourg’s offer improves substantially, exceeding the European benchmark.

Short-term travel intent and travel forecasts (Europe; source: European Travel Commission)

  • Travel intent: 75% of Europeans plan to take at least one trip by October 2024 (+3 points vs. 2023). 58% of Europeans plan to take 2+ trips, less than in 2023. Holiday types in higher demand than last year include sun and beach, culture and heritage, camping, and events (the latter among Luxembourg planners).
  • Key concerns: High costs and personal finances remain travellers’ biggest concerns, followed by safety.
  • Trends and preferences: 50% of Europeans plan to fly to their next destination, the highest level ever recorded since the survey launch in 2020.

Forecast: Inbound arrivals to Europe are forecast to top 2019 levels by 3% in 2024 (Western Europe: 7%), and by 11% in 2025. Risks to growth continue to be dominated by staffing issues, inflationary and geopolitical factors and rising business costs.

Travel spend in Europe (source: European Travel Commission/UN Tourism)

- The inbound travel spend in Europe is forecast to grow by 14% vs. 2023, confirming the role of travel as a spending priority for consumers.
- Growth in spending is driven by inflation, consumer preferences, more business and bleisure travel, and major events (e.g., Olympics), raising concerns of value for money.
- In this context, short-haul travel remains key for European destinations, in terms of both arrivals and spending.