Bank of Ireland is predicting an increase in summer staycations this year. The Bank’s card spending data for May shows that spending on air travel declined by 6.4% year‑on‑year, despite air seat capacity into Ireland being projected to increase by 3% this summer compared with the same period last year. Irish hotels are expecting strong demand from the domestic market this summer as higher long-haul travel costs, security risks and ongoing geopolitical issues may tip the scales in favour of an Irish break.

The sector has entered 2026 with positive momentum, with a majority of hotels reporting stable occupancy and strong average room rates through to the end of May. Dublin continues to outperform many European cities, maintaining occupancy levels in excess of 80% to the end of May. Outside of Dublin, CoStar STR hotel occupancy figures reveal that Limerick achieved the highest average room rate at €184, representing a 9% increase in May 2026, in comparison to May 2025. Kilkenny, Cork, and Galway also recorded positive revenue per available room in comparison to the same period last year.

STR and Fáilte Ireland data also show that event‑led demand remains a critical driver of performance, reinforcing Dublin’s position as a leading events‑driven destination.

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

Domestic tourism continues to play a stabilising role for the Irish market. Staycation trips surged in the aftermath of the pandemic and peaked at 16.5m for 2024. According to CSO data for year‑end December 2025, domestic trips by Irish residents accounted for 70% of total tourism trips by volume, albeit a lower 40% of total tourism expenditure. Fáilte Ireland data highlights that domestic demand is more evenly spread across the year and across regions, making it particularly important in supporting regional destinations and off‑peak trading.

Gerardo Larios Rizo, Head of Hospitality, Bank of Ireland, said: “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. 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. 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.”

As the hospitality sector enters the peak 2026 season, operators continue to invest in refurbishments, energy‑efficiency measures and guest‑experience upgrades, reflecting confidence in medium‑term demand and a focus on long‑term competitiveness.

Overall, strong occupancy levels, resilient demand, a growing domestic market and an increasingly extended tourism season point to a sector that remains fundamentally robust, even amid softer long‑haul travel trends.