Italy continues to stand out as one of Europe’s most dynamic travel markets, with growth that reflects both strong demand and ongoing structural change.
In 2025, the market reached €30 billion in gross bookings, rising 4.5% year over year as record inbound travel pushed tourism to new highs, according to Phocuswright’s Italy Travel Market Brief 2026. Digital channels are playing an increasingly central role, with online bookings now accounting for 58% of the market and mobile driving more than half of that activity.
Momentum spans across segments.
Hotels remain the largest category, supported by investment activity and demand for higher-end properties, while airlines and tour operators advance through low-cost carrier expansion and consolidation. Rail is also gaining ground, fueled by steady growth and continued digital adoption.
Even amid geopolitical uncertainty, Italy’s broad appeal, strong domestic alternatives and ongoing digitalization continue to support long-term growth.
Here are three key things to know about Italy’s travel market:
- In 2025, tourism in Italy reached an all-time high: 476 million overnight stays, around 10 million more than in 2024 (+2.1%). Growth was driven primarily by an increase in foreign visitors, while the domestic market remained essentially flat.
- During summer 2025, low-cost carriers captured 61% of total capacity, up from 48% in 2019.
- Italy ranks first in Europe for hotel accommodation capacity. On the investment side, total hotel investment in 2025 exceeded €2.5 billion (+19% year over year).