Increasing numbers of holidaymakers are turning to package holidays in Europe over soaring prices. (Image: Getty)
As a result of soaring hotel and flight prices, a growing number of are turning to in Europe, years after all-inclusive deals had fallen out of favour.
In , higher holiday costs have meant that the spending power of has been hit hard. As a result, bars and restaurants have reported a big fall in takings. A senior figure within the hospitality industry even called for to slash their prices in order to combat the fall in spending.
Juanmi Ferrer, the new president of the CAEB Restaurants Association, said, as reported by the : “ products cost more and .”
“If a family has 2,000 euros for their holidays, a few years ago they spent 1,000 on the hotel and transport and had another 1,000 to spend on restaurants, excursions, shopping.
“Now they have to pay 1,600 for the accommodation and transport and have 400 euros left for everything else.”
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Increasing numbers of British tourists are turning to package holidays amid soaring prices in Europe (Image: Getty)
The combination of a crisis and disruption from and glitches has added to the appeal of a fixed-price package without unexpected add-on costs and easier redress when things go wrong.
After years of travellers using the internet and travel guides to compile their own itineraries, travel analysts have said a trend in buying a ready-made package that began last year has accelerated this summer, the busiest for travel since the pandemic.
“It’s something that you think would have died out back in the seventies,” Stuart Hatcher, chief economist at aviation data analysis firm IBA, said. “Since , more people are booking package trips.”
Spending on package holidays in – most popular among Britons and Germans – is expected to reach $117billion (£97.4billion) this year, up 11 percent from a year ago and will hit a new peak of $125.9billion (£104.8billion) next year, according to Euromonitor.
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Package holiday providers negotiate deals with hotels and other players to drive down costs. (Image: Getty)
The fixed upfront costs and value for money are appealing, said Caroline Bremner, Euromonitor senior industry manager for travel: “In times of peak , as over the past two years, (packages) enable consumers to budget more efficiently.”
British tourists spend about $450 (£374) per capita on average on these getaways, Euromonitor’s figures show, as the package holiday provider negotiates deals with , transport companies and other players to drive down costs.
However, package deals are set to get more expensive, the market research company forecasts.
It predicts prices will grow at a compound annual growth rate (CAGR) of 3.5 percent between 2024 and 2029, faster than before the pandemic when they rose at a pace of about 1.3 percent in the period between 2014 and 2019.