According to fresh European hotel market forecasts, the most important questions for Hungarian travelers in the summer of 2026 will not be empty rooms, but value for money, flexible booking, and smart choices between destinations. The analysis published by CoStar and STR on May 29 predicts moderate, price-driven European RevPAR growth, while data from the ETC and Mastercard show that Europe remains a strong tourist magnet, but travelers are increasingly consciously seeking more affordable, shorter, and better-planned trips.
One of the most important practical questions for this year's summer travel season is not necessarily whether there will be demand in Europe. The answer to this remains yes: European tourism has remained strong, with city visits, cultural trips, events, and shorter regional trips continuing to drive the market. From the perspective of Hungarian travelers, the deciding factor is rather how to find good accommodation at a good price, in which cities it is worth booking earlier, and where there is an advantage if one does not insist on the most popular weekends or the most expensive city center hotels.
The CoStar/STR forecast published at the end of May is important because it shows what the market can expect based on hotel performance indicators rather than as a general mood report. According to the update for 31 forecasted European hotel markets, RevPAR, or revenue per available room, could grow by 1.4 percent in 2026. This is higher than the 1.1 percent expected in February, but the improvement comes primarily not from a spectacular increase in occupancy, but from a cautious increase in the average daily room rate, ADR.
What does this mean simply for travelers?
RevPAR and ADR seem like professional indicators, but they have very tangible consequences for the everyday traveler. If occupancy only increases slightly, while revenue increases primarily through prices, then hotels will not necessarily be more crowded everywhere, but the price of well-located, well-rated, and flexibly cancellable rooms will remain tight. This is especially true in popular European cities, during major events, and in periods when Friday-to-Sunday city visits concentrate demand.
Hungarian travelers should therefore distinguish between two situations. One is when they travel for a specific event, concert, sporting event, fair, or long weekend. In such cases, late booking can easily be more expensive. The other is when the destination is more flexible: for example, a late spring or early summer city visit to Prague, Barcelona, Milan, Vienna, Rome, or Frankfurt. In this case, it can make a big difference if the traveler does not look at only one date and one part of the city, but compares weekday departures, outer districts, airport hotels, and alternatives that are also easily accessible by rail.
Starting from Budapest, this is a particularly practical question. Those planning their trip by plane should check the routes available from Budapest airport when choosing their flight, and on the day of departure, the Budapest Airport online flight information can be useful. If needed due to an early departure or late evening arrival, hotels around Budapest Liszt Ferenc Airport can become an important cost item, not just a convenience solution.
Demand is strong, but the traveler has become more cautious
According to the May summary from the European Travel Commission, the ETC, international tourist arrivals in Europe exceeded the same period of the previous year by 5.6 percent based on early-year data. This indicates that the continent's tourism has not turned around; in fact, several countries continue to show strong momentum. However, the ETC also warns that geopolitical tensions, conflicts, weather and climate risks, as well as rising fuel and operating costs, could dampen travel confidence.
This duality is very important. Demand does not disappear, but its structure changes. Travelers do not necessarily give up on vacations, but rather modify their decisions: they choose closer destinations, go for shorter periods, monitor package prices, or seek well-connected but less central neighborhoods instead of very expensive city center hotels. The Mastercard Economics Institute's 2026 European travel report reinforces this trend: Europe remains a strong cultural and experience-based destination, but prices, energy and transport costs, and exchange rate fluctuations increasingly influence where, when, and for how long people travel.
From a Hungarian perspective, this is significant because travelers thinking in forints may be particularly sensitive to accommodation prices payable in euros. A 5-10 percent difference in room rates alone matters, but to the total travel cost, this is added the flight ticket, local transport, dining, city tax, baggage fees, and possible airport transfers. Accommodation is therefore not an isolated item: it is part of the total route planning.
Not every European city moves in the same direction
The CoStar/STR update is particularly useful because it shows that the European hotel market is not uniform. According to the report, occupancy expectations improved in 16 forecasted European markets, but the outlook for the second half of the year remains cautious. The strength of demand in the first half of the year has been partly built into the prices, and in the summer and autumn periods, cost pressure, route realignment, and a possible pullback in long-term demand may play a larger role.
According to the fresh forecast, Glasgow, Barcelona, and Prague could be among the strongest growing markets in 2026, primarily due to leisure demand. This carries two messages for Hungarian travelers. First, these cities will remain attractive and lively, so it is worth searching for cheap, high-quality accommodation in time. Second, it is not certain that the most obvious, most popular city districts provide the best value. In Prague, for example, due to good public transport connections, a less central accommodation can also work if the traveler checks the evening return and the airport connection in advance.
Budapest appears in the CoStar/STR analysis in a different context: according to the report, the expansion of room supply in several markets, including Budapest, could put pressure on prices. This does not mean that everything will be cheaper in the Hungarian capital, but that new hotel capacity may increase competition. For inbound tourism, this could be favorable, as it gives guests more choices, and for Hungarian travelers, it sends the message: the same logic applies in our own city as in other European markets, namely that a good price depends on the meeting of supply, date, and demand.
Middle Eastern uncertainty appears in Europe as well
A central element of the hotel market forecast is the Middle Eastern conflict and the associated travel realignment. According to CoStar/STR, the markets in that region suffer the strongest impact, but the change can also be felt in Europe: certain Middle Eastern source demand may decrease, while intra-regional European travel and long-haul demand from America may offset this in several markets. The ETC also points out that Europe's risks can be mitigated by high intra-regional demand, meaning that a significant portion of Europeans continue to travel within Europe.
For Hungarian travelers, this means that European cities will not necessarily be less popular just because some long-haul routes have become more uncertain. In fact, if some travelers choose shorter European trips instead of Asia, the Middle East, or distant beach destinations, it could strengthen demand in cultural cities, cooler summer regions, and easily accessible alternative destinations. Therefore, when planning for summer, it is not enough to check if there is a flight ticket; the price of accommodation and the cancellation terms are at least as important.
When planning routes and connections, airport logistics also enter the cost equation. If a traveler stays in Budapest the previous evening due to an early departure, or if they return late and do not want to proceed immediately, airport accommodation, Budapest airport transfers, or even car rental at Budapest Airport are not just convenience extras, but decisions that affect the total cost and stress level of the trip.
How should you book accommodation now?
Based on fresh data, the best strategy for summer 2026 is not for everyone to book anything immediately, but for booking to be conscious. Flexible cancellation terms can be worth more if the route must be modified due to geopolitical, aviation, or workplace reasons. At the same time, for trips tied to major events, holiday weekends, and school breaks, excessive waiting can lead to price increases.
- For flexible dates, it is worth comparing Tuesday-Thursday and Friday-Sunday stays, as city hotel pricing can be strongly day-dependent.
- For popular cities, do not look only at the city center: a good metro, tram, or rail connection often provides a better value for money.
- For flight trips, in addition to the price of accommodation, baggage, airport exit, late evening arrival, and early departure must also be calculated.
- For family trips, breakfast, cancellability, room size, and travel time are often more important than an initially lower nightly price.
- For longer trips, apartments, aparthotels, or accommodation in outer districts can be competitive if local transport is reliable.
For Hungarian travelers, it can be particularly useful to look at the price of the flight ticket and accommodation together, rather than separately. A cheaper flight ticket with a late evening arrival can easily lose its advantage if an expensive transfer or an extra airport night is required. Conversely, it is true that a more expensive but more convenient flight can be overall better if it means fewer nights, shorter waiting times, and simpler local transport.
Why is this important for the Hungarian tourism market?
The hotel market forecast is a signal not only for travelers but also for travel agencies, airport service providers, and Hungarian accommodation providers. Demand continues to live, but the guest increasingly seeks value. Those who sell package deals, city visits, or individual trips must clearly show what the traveler gets for their money: a good schedule, convenient transfers, reliable accommodation, transparent cancellation terms, and realistic total costs.
For Budapest, the picture is mixedly favorable. The expansion of supply can bring stronger competition among accommodation providers, which means variety for visitors. At the same time, in the competition for inbound demand, the Hungarian capital must face the same questions as Prague, Vienna, or Barcelona: how to offer a good value for money while ensuring that the quality of service, transport, and the city experience remain convincing.
A summer season, therefore, does not promise a weak, but a selective market. Travelers still want to go, but they weigh their options better. Hotel prices do not increase everywhere and not in the same way, demand varies by city and period, and geopolitical uncertainty affects European routes and long-haul travel decisions. For those planning for summer 2026 as a Hungarian traveler, the simplest and most important advice is: do not just choose a destination, but calculate the total travel picture.
Summary
Based on May hotel market data, Europe remains a strong destination in 2026, but travel costs must be managed more consciously. CoStar/STR expects cautious, price-driven European hotel market growth, the ETC says tourist arrivals increased significantly at the beginning of the year, and Mastercard shows that along with experiences, European travelers increasingly seek value, affordability, and good timing. For Hungarian travelers, this is not bad news, but a planning warning: those who are flexible, compare, and look at accommodation together with flight tickets, transfers, and local transport, have a better chance of finding a truly good deal for summer European trips.
The article is based on the CoStar/STR global hotel market forecast of May 29, 2026, the European Travel Commission's May 2026 European tourism trend summary, and the Mastercard Economics Institute's 2026 European travel report.