Hotels, Volcanic Ash and the Summer

By | Category: Travel rumblings

It has been reported in the media that hotel prices rose considerably when airports had to close due to the ash in the atmosphere.( I have to say that the hotel I used gave me the same rate) During the six day closure some 10 million people were estimated to have been affected. That meant that hotel reservations were cancelled as well as new ones being booked at the last minute.

Prices certainly rose and cancellations at lower rates were probably replaced by walk-in rates which would have been higher so hotels in the affected areas shouldn’t have lost overall.

Now comes the monthly report from Pegasus Solutions, the reservations technology provider to more than 95,000 properties around the world, which shows that  there were increases in hotel rates.  On one day, compared to the same day last year, bookings rose by 120%.  Then, as the airports reopened, it looks as though hotel rates dropped again.

Over this last weekend there was disruption in Austria, Spain, Portugal, Italy, Spain and the west coast of Scotland. I am guessing that hotel rates rose again.  The experts tell us that the eruption could last some months taking us into the busy summer holiday season. If that is the case, we can probably expect hotel rates to rise during the disruption.

So if the eruption continues that long will people consider that taking an overseas holiday is not worth the hassle. Unless you consider being able to get there by Eurostar, Le Shuttle or ferries. So France, Ireland, Belgium, Netherlands, Denmark and Northern Spain could see a greater number of tourists either staying there or using it as a corridor to get to their destinations. It might mean airlines have to discount in summer to get us to travel with them. The winners could be domestic holidays and the cruise lines. Or anything else that you can think of to avoid flying,- and possible having to pay high hotel charges if you do get held up!

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