'Significant' rise in staycations predicted as spending data shows air travel decline

Bank of Ireland says notable drop in credit and debit card spending in US and Gulf States

Bank of Ireland is predicting a 'significant' increase in summer staycations, with card data published on Wednesday showing a 6.4% fall in air travel spending by Irish customers. Picture: Simon Dawson/Bloomberg

Bank of Ireland is predicting a 'significant' increase in summer staycations, with card data published on Wednesday showing a 6.4% fall in air travel spending by Irish customers. 

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

"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," said Bank of Ireland head of hospitality Gerardo Larios Rizo. "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.”

Air seat capacity into Ireland is projected to increase by 3% compared with May 2025. Bank of Ireland said most hotels were reporting stable occupancy and strong average room rates through to the end of May. 

CoStar STR hotel occupancy figures, which analyse hotel occupancy rates worldwide, showed cities including Dublin, Cork, Kilkenny, and Galway recorded positive revenue per available room in comparison to May 2025. Limerick achieved the highest average room rate at €184, representing a 9% increase in May 2026, in comparison to May 2025.

Dublin continues to outperform many European cities, maintaining occupancy levels in excess of 80% to the end of May, with event‑led demand a critical driver of performance.

Failte Ireland expects visitor numbers from North America to continue to rise this summer, with the level of seat capacity on flights from the US up 7% this year compared to 2025. US visitors account for 40% of inbound tourism expenditure. 

“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 Mr Larios Rizo.