- 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.
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.”
