- Spending on air travel decreased by 6.4pc year on year in May
- Dublin hotels held occupancy levels above 80pc
- Limerick achieved €184 average room rate in May 2026
- Domestic trips represented 70pc of tourism volume in 2025
- The VAT rate reduction takes effect in July
Bank of Ireland has reported a decline in air travel spending in May 2026. Bank of Ireland predicts significant rise in summer staycations as air travel spending falls.
Bank of Ireland has reported a 6.4 per cent year on year decline in card spending on air travel in May 2026, despite a projected 3 per cent increase in air seat capacity into Ireland this summer. The data suggests higher long haul costs, geopolitical uncertainty and security concerns are encouraging more domestic holidays. Irish hotels anticipate strong demand from the home market during the peak season.
Dublin continues to perform well with occupancy levels above 80 per cent through the end of May. Limerick recorded the highest average room rate outside the capital at €184, a 9 per cent increase on May 2025. The VAT rate reduction in July is expected to provide further support to the hospitality sector.
Card spending on air travel fell by 6.4pc year on year despite a projected 3pc increase in air seat capacity into Ireland this summer. The bank predicts a rise in summer staycations as higher long haul costs and geopolitical concerns influence choices. Dublin hotels maintained occupancy above 80pc through the end of May.
Limerick recorded the highest average room rate at €184, up 9pc from May 2025. Kilkenny, Cork and Galway also showed positive revenue per available room. Domestic trips accounted for 70pc of total tourism trips by volume in 2025.
Gerardo Larios Rizo noted the diversified demand base and the role of domestic tourism. The VAT rate reduction in July supports the sector. Hotels continue investments in refurbishments and guest experiences.
Gerardo Larios Rizo shared “Ireland benefits from a well diversified demand base across the EU, North America and the, while strong domestic tourism provides a natural buffer when international travel softens.”
