The summer season brings a much-needed break for many Europeans, but for a significant portion of the population, a holiday remains an unaffordable luxury. This article delves into the economics of holiday affordability across Europe, exploring the disparities and trends that shape this essential aspect of leisure and well-being.
Holiday Affordability: A European Snapshot
In 2025, nearly one in three Europeans aged 16 or older (27.5%) couldn't afford a week-long holiday away from home. This figure, while improved from a decade ago (35.2% in 2015), still highlights a substantial portion of the population missing out on this essential respite.
The situation varies drastically across Europe. At one end, countries like Switzerland and Norway boast affordability rates of just 9%, while at the other, Romania struggles with a staggering 61% of its population unable to afford a week-long break. This disparity is a stark reminder of the economic inequalities that persist within the EU.
Regional Trends and Disparities
Southern and Southeastern Europe bear the brunt of holiday deprivation, with countries like Montenegro, Albania, and Turkey seeing more than half their populations unable to afford a holiday. This trend extends to EU candidate countries, indicating a broader economic challenge in these regions.
In contrast, Northern Europe, particularly the Nordic countries, and Western Europe enjoy the lowest levels of holiday deprivation. Countries like Luxembourg, Sweden, and the Netherlands consistently rank among the most affordable for holidays.
The Role of Economics
Experts attribute these disparities to income levels and economic strength. Professor C. Michael Hall emphasizes the importance of disposable income, noting that "disparities in holiday taking reflect broader economic disparities within the EU." Similarly, Professor Lynn Minnaert highlights the correlation between a country's GDP and its holiday affordability, with countries at the higher end of deprivation typically having lower GDPs.
A Decade of Change
Over the last decade, there's been a gradual improvement in holiday affordability across Europe. In 2015, almost 2 in 5 Europeans (38.8%) couldn't afford a week-long holiday, a figure that peaked in 2012 at 40.5%. This trend has seen a steady decline, reaching a more stable 27-28% range in recent years.
However, this improvement isn't uniform. While 25 out of 30 countries recorded a decline in unaffordability, five countries saw an increase. Notably, the three Nordic countries experienced the highest percentage-point increases, though their starting points were relatively low. Germany and Austria, on the other hand, saw a marginal rise, with around one in five people unable to afford a holiday in 2025.
Success Stories and Challenges
Some countries have made remarkable strides in improving holiday affordability. Croatia and Serbia, for instance, saw declines of 33 and 32 points, respectively, over the decade. Other notable improvements were seen in Cyprus, Ireland, Bulgaria, Turkey, Poland, Portugal, Slovakia, Malta, and Hungary, with declines of more than 15 points.
Despite these successes, the challenge of holiday affordability persists, especially in certain regions. As we reflect on these trends, it's essential to consider the broader implications for leisure, well-being, and economic equality across Europe.
