Price rises on holidays

By | Category: Travel news
empty beach

will holiday price increases deter us from holidaying abroad?

Travelzoo warns us that package holiday prices are likely to rise by at least 10% next year. Even more concerning is that some tour operators believe the increase could be as high as 15% to 20%.

In early December they surveyed fifteen companies and found that four out of five expected average holiday prices to rise in 2017. The survey included nine tour operators and firms that carry a combined total of more than a million passengers. This suggests that the big two – TUI and Thomas Cook – were not included as they each carry millions of holidaymakers and are responsible for the majority of all package holidays sold in the UK.

But the reasons that Travelzoo lists as causing price increases Brexit, sterling’s slide against other currencies, the rising cost of oil and ongoing geopolitical events would be to blame for are those that anyone would cite.

Chief amongst them must be the fall in sterling against other currencies. With the pound having dropped from higher than $1.50 to about $1.28 against the US dollar (in which oil is priced) and from about €1.30 to €1.18, it would be a foolhardy company that wouldn’t want price increases. Unless the pound recovers in the first few months of 2017 when companies decide on their holiday prices for 2018 in about June/July you can expect to see 2018 summer holidays more expensive just as winter 2017/2018 will be.

Some companies have been considering surcharges. So strongly is this being considered that one company (Madame Vacances) with the brands, Ski France and Summer France, have announced that their holidays are free from surcharges.

Even in 2017, holidaymakers will find that costs when they get to their holiday destinations will be higher than this year so does this mean that staycations will boom for a few years? Provided that domestic holiday companies don’t raise their prices too much, that boom is on the cards.

The one thing that has been constant over the last thirty or forty years is that people will forego other things rather than give up their holidays. They may switch destinations and reduce the number of days away but a holiday is almost sacrosanct. So the best bets for 2017 may be those countries where the pound has not slumped as much, where there is little political upheaval or terrorist action and, of course, at home.

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