Long-haul travel demand softens

Why shifting traveler priorities require a smarter hotel distribution and revenue strategy

The European Travel Commission’s Long-Haul Travel Barometer 1/2026 reports a 5% decline in long-haul travel intentions across major overseas markets. Economic pressure is not eliminating travel demand, but it is reshaping where, when, and how travellers book. Guests are trading distance for value, shifting to shoulder seasons, and rethinking packages in favour of flexibility. For hoteliers, this is less about panic and more about recalibrating distribution, pricing, and positioning.

Key takeaways

• Price sensitivity is now structural: With 52% of travellers citing cost as the main barrier, long-haul demand is becoming more value-driven, requiring sharper rate positioning and clearer justification of price.
• Demand is redistributing, not disappearing: Travellers are opting for domestic or short-haul alternatives, meaning European hotels must compete harder for share of wallet rather than rely on overall market growth.
• China remains important but is evolving: Although still the strongest source market, Chinese travellers are shifting from full tour packages to personalised trips, increasing the need for flexible inventory and direct engagement.
• Australia and Canada show warning signs: Noticeable declines and preference for closer destinations signal that traditional long-haul feeder markets cannot be taken for granted.
• Shoulder seasons present opportunity: Growth in January travel highlights demand for value periods, creating revenue management opportunities beyond traditional peak months.
• Safety influences conversion: With safety now the leading decision factor, hotels must communicate security, stability, and trust clearly across all distribution channels.
• Flexibility in booking matters: The move toward partial packages and separate bookings requires distribution strategies that support both packaged offers and standalone room sales.
• Experiences drive spend, not rooms alone: Dining and activities outrank accommodation in budget priorities, reinforcing the need for experience-led marketing and ancillary revenue strategies.

Source: European Travel Commission (ETC)

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