Prices are going up for Summer destinations
Summer bargain trips to the Mediterranean were a thing of the past. Instead, it will be more expensive to travel during the summer of 2023. As a result, prices are going up for Summer destinations. However, demand remains high.
The cost of holidays on the Mediterranean beaches will be higher this summer than pre-pandemic, as there is something brewing.
All elements have become more expensive, including the prices posted by the airlines. For example, since the Ukraine war, kerosene prices have soared. In addition, suppliers, such as those for catering, have increased their prices, including airports and ground handlers. Meanwhile, there is a limited capacity. During the summer, Lufthansa alone cancelled 34,000 flights due to staff shortages and fears that airports could not accommodate the originally scheduled flights.
Inflation and higher energy prices have also raised prices in summer destination holiday hotels. The bottom line is that summer holiday prices will be 10 to 20 per cent higher than in 2018 or 2019.
The budget for travel barely touched
Last autumn, Swiss tour operators discovered that people still travel like there’s no tomorrow despite high prices. The bookings kept coming despite the price increase. After two and a half years of reluctance to travel due to the pandemic, the argument became apparent: a huge catch-up effect. Despite the following year’s onset of this effect, it continues to exist.
Travel budgets were barely touched during the pandemic, and now the reserves are full. As a result, you treat yourself to something like longer holidays and better hotel accommodations. Furthermore, Swiss people benefit from the solid Swiss franc because the exchange rate cushioned local inflation and kept unplanned expenses, such as dining out or excursions, within limits.
Whether this effect of a shortage of flights and high demand will last for long remains to be seen, it should be soon that the airlines resume their previous flight frequencies, and overcapacity is back on the market – and prices decline. Nevertheless, it is essential to remember that all airlines are massively indebted after the Corona years, with estimates of 200 billion dollars. Nonetheless, it is vital to remember that all airlines are massively indebted after the Corona years, with estimates of 200 billion dollars. Therefore, the chances of lowering the rates of the tickets are small.
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