Italy’s travel market pushes deeper into digital growth

Online bookings are reshaping Italy’s tourism economy while hotels and luxury travel continue to drive revenue growth

Italy’s travel market continues to expand steadily, supported by strong inbound tourism demand, resilient domestic travel activity and rising digital adoption. According to recent research from Phocuswright, the Italian travel market grew 8% in 2024 to reach €28.9 billion in gross bookings, with online channels now representing the majority of travel sales. Hotels remain the dominant revenue driver, fueled by luxury travel demand and record overnight stays across the country. The research also highlights that while digital bookings continue to grow, traditional retail travel agencies still play an important role for more complex and higher-value itineraries.

Key takeaways

• Strong market growth: Italy’s travel market expanded by 8% in 2024, reaching €28.9 billion in gross bookings as inbound tourism and domestic travel demand remained robust.
• Online bookings dominate: Online travel bookings now account for 57% of the Italian travel market and are projected to rise further to 62% by 2028, reflecting continued digital adoption among travelers.
• Hotels remain the core segment: Accommodation continues to generate the largest share of travel revenue in Italy, supported by strong luxury demand and high international visitor volumes.
• Offline channels still matter: Traditional travel agencies remain relevant, particularly for complex itineraries, premium travel experiences and multi-component bookings where travelers still value human expertise.
• Rail travel is gaining momentum: Italy’s rail sector recorded double-digit growth, driven largely by expanding high-speed rail services and growing interest in lower-friction domestic mobility.
• Europe remains stable but slower-growing: Phocuswright notes that Europe’s broader travel market has entered a more normalized growth phase after the post-pandemic rebound, with moderate but stable expansion expected through 2028.
• Digital competition is intensifying: As online penetration rises, visibility across OTAs, metasearch and AI-driven discovery platforms is becoming increasingly important for Italian hotels and travel brands competing for international demand.

Source: Phocuswright

Enjoying this analysis? Hospitality.today delivers daily insights on hotel distribution, AI trends, and travel commerce — straight to your inbox. Subscribe for free at Hospitality.today →