Italy's travel market achieved a significant milestone in 2025, reaching €30 billion in gross bookings, according to a new report by Phocuswright. This marks a 4.5% increase from the previous year, driven by a surge in inbound tourism. The report, released ahead of the Phocuswright Europe conference in Barcelona, highlights the strong demand and rapid digital adoption reshaping Italy's travel sector.
Tourism volume in Italy reached 476 million overnight stays in 2025, an increase of 10 million from the previous year. The growth was primarily fuelled by foreign visitors, whilst domestic travel remained stable. Digital channels now account for 58% of all bookings, with mobile platforms playing a significant role.
Low-cost carriers have significantly impacted the aviation landscape, capturing 61% of total capacity during the summer of 2025, up from 48% in 2019. This expansion has enhanced connectivity to secondary cities, boosting inbound demand. Hotels remain the largest segment by gross bookings, with room revenue hitting €19.1 billion in 2025. Hotel investment also saw a rise, exceeding €2.5 billion, as international investors targeted both gateway cities and emerging luxury destinations.
Rail travel is gaining traction, with gross bookings reaching €4.3 billion and online penetration climbing to 64%. Pete Comeau, managing director at Phocuswright, noted, "476 million overnight stays is a record, but the more telling number is where the growth is coming from. Foreign visitors drove the increase whilst domestic demand stayed essentially flat."
The Phocuswright Europe 2026 conference will further explore these trends, bringing together industry leaders to discuss the forces shaping Europe's travel economy
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