Summer is just around the corner, and families are already starting to make plans for their much-needed vacation. But as much as everyone deserves a break, the cost of travel has been steadily increasing over the past few years. In fact, some popular destinations have seen prices go up by as much as 70 percent. Yet despite these rising costs, families are still eager to book their summer holiday. Why is that? In this article, we’ll explore the reasons behind their decision and how they’re finding ways to make their dream vacation happen.
This summer, holidaymakers are paying up to 30% more for trips to popular European destinations due to increased demand. Factors such as inflation, fuel costs, rising food prices, wage increases, and reduced capacity have contributed to the spike in prices. Despite this, overall demand is only slightly lower than pre-pandemic levels, and airlines and travel companies are expecting a prosperous season. Consumers have been advised to avoid expecting last-minute deals, as bookings for popular destinations are on the rise. In fact, some sought-after travel packages have increased by 25% since 2020/21, while luxury holidays have risen by up to 35%. Currency factors have also had an impact on prices.
Wise, a tech payments company, carried out research that found 74% of Irish consumers expect to pay more for their 2023 vacation than they initially planned. Meanwhile, most Irish families plan to spend €2,800 on their summer holiday, but 34% are contemplating a cheaper option.
According to consumer magazine Which, the UK and Irish market has seen pricing increases between 19% and 30%. The highest increase in prices was for package holidays to Greece and Italy between this year and 2022. Airfare is primarily to blame for the price increases, with some flights to Greece, given its distance from Ireland and aviation fuel requirements, being up by nearly 70%. Although Spain and Portugal have seen the lowest rate of price increases, they have still experienced a 15% to20% increase compared to last year.
Irish holidaymakers are valued at €8 billion to the global travel industry, having taken 9.4 million outbound trips from Ireland in 2019. Spain, France, and Italy remain the top travel destinations. The high price of oil has caused airlines to increase their prices, with the former CEO of IAG and current head of the International Air Transport Association, Willie Walsh, stating that “flights are more expensive because of the high price of oil and it has been clear to everybody that [this] will be reflected in higher ticket prices.”
Irish travel agents have confirmed that early bookings have surged, with holidaymakers seeking discounts and good value in their favorite destinations. Some vacationers have even booked summer 2023 trips as early as September 2022. TUI’s CEO, Sebastian Ebel, announced that the 2023 season would see significant growth, with traditional vacation spots, such as Spain, Portugal, the Canary and Balearic Islands, and the Greek islands, enduring as popular preferences.
Cruise holidays have witnessed a significant recovery, with the number of liners due to berth in Irish ports this summer increasing by over 20%. Although long-haul flights and holidays are showing signs of recovery, they remain slightly lower than pre-pandemic levels. This sector has seen significant price increases due to exposure to fuel prices.
In conclusion, it seems that families are undeterred by rising holiday costs and are determined to make the most of their summer break. While some destinations may be more expensive than in previous years, there are still plenty of options available for those looking to get away. It is important to plan ahead, compare prices, and consider alternative destinations or accommodation options to ensure you get the best value for your money. Ultimately, the summer holiday is a time to relax, unwind, and spend quality time with loved ones. So, whether you’re staying close to home or venturing further afield, we wish you a happy and memorable summer holiday.
