Travel WEALTH June 24, 2026 0 Comments

Air Travel Slumps 6.4%—Why Staycations Are The Dark Horse Poised To Rewrite The Travel Game In 2024

Isn’t it ironic? Just as airlines are ramping up their seat capacity by 3%, Bank of Ireland is seeing a 6.4% nosedive in air travel spending. What’s driving this curious trend? It seems the classic “grass is greener” mentality is flipping—folks are opting for the cozy comforts of home turf over costly and risky long-haul sorties. Hotels all across Ireland—from Dublin’s buzzing streets to Limerick’s thriving room rates—are gearing up for a staycation surge this summer, thanks to a cocktail of geopolitical jitters, soaring travel costs, and a savvy domestic market that refuses to back down. And hey, with a VAT cut coming in July, things might just get hotter for local tourism. So, is the age of the staycation officially upon us, rewriting the rules of travel and spending? Stick around—I think this shift could teach us a thing or two about resilience and opportunity in unpredictable times. LEARN MORE

Bank of Ireland has forecast an increase in ‘staycations’ this summer after seeing a 6.4% decrease in spending on air travel last month.

The decline in air travel spending came despite air seat capacity being projected to increase by 3% this year compared with last summer.

Irish hotels are expecting strong demand from the domestic market during the peak season as high long-haul travel costs, security risks and ongoing geopolitical tensions may tip the scale in favour of taking breaks closer to home.

The majority of hotels reported stable occupancy and strong average room rates through to the end of May, and Dublin continues to outperform other European cities.

The capital is maintaining occupancy levels in excess of 80%, and figures from CoStar STR show Limerick achieved the highest average room rate at €184, a 9% increase compared with May 2025.

Kilkenny, Cork, and Galway also recorded positive revenue per available room in comparison to the same period last year.

STR and Fáilte Ireland data also show that event‑led demand remains a critical driver of performance, reinforcing Dublin’s position as a leading events‑driven destination.

Analysis of Bank of Ireland debit and credit card spending between January and April highlights a marked decline in spending in the US and the Gulf States, while spending in traditional European destinations remained broadly flat, including Turkey (+0.5%), France (‑0.9%), Portugal (‑1.8%) and Spain (+1.4%).

Staycation trips were popular in the aftermath of the pandemic, peaking at 16.5m in 2025.

Year-end data for 2025 from the CSO shows domestic trips by Irish residents accounted for 70% of tourism trips by volume, albeit a lower 40% of total tourism expenditure.

Fáilte Ireland data highlights that domestic demand is more evenly spread across the year and across regions, making it particularly important in supporting regional destinations and off‑peak trading.

“Ireland benefits from a well‑diversified demand base across the EU, North America and the UK, while strong domestic tourism provides a natural buffer when international travel softens,” said Gerardo Larios Rizo, head of hospitality at Bank of Ireland.

“We have seen a noticeable drop in card spending in the United States and the Gulf States, which likely reflects heightened geopolitical and security concerns and a more cautious approach to long‑haul travel.

“If this trend continues, there should be a significant increase in staycation spending this summer. The VAT rate reduction in July will also be welcomed by both the sector and travellers.”

Overall, strong occupancy levels, resilient demand, a growing domestic market and an increasingly extended tourism season point to a sector that remains fundamentally robust, even amid softer long‑haul travel trends, Bank of Ireland said.

Photo: Gerardo Larios Rizo. (Pic: Supplied)