Higher prices not denting travel recovery in Europe
Services inflation in the Eurozone has remained persistent and within this the price of travel related items such as international flights and hotels have risen significantly this year.
What you will learn:
- Package holidays have risen in line with inflation this year proving popular among both low- and middle-income households due to the cost-of-living crisis.
- Consumers continue to prioritise spending on travel throughout this year with European arrivals just 3.8% below 2019 levels on average in the year to date. However, the increase in the cost of spend for travel services, such as restaurants and hotels, is significantly less than other costs such as housing, utilities and food.
- High inflation is not having a significant impact on destination choice. Destinations with similar rates of inflation in Q2 2023 saw varied rates of recovery in nights.
- Recent price rises may not be sustainable and should moderate. Tourism hotspots that have seen a surge in visitors this year and will justifiably be increasing prices across tourism establishments due to higher variable costs such as food.
Tags:
Related Posts
Assessing the potential impacts of the GCC Unified Visa
The GCC countries have approved a unified tourism visa system which aims to boost tourism and economic diversification across the region. The new system should come into effect in 2024 or 2025 having been announced at the recent GCC meeting in Muscat.
Find Out More
Disney’s Effect on Fueling Florida Economy, Jobs and Tourism
Walt Disney World Resort, one of the world’s most visited vacation destinations, generated $40 billion in economic impact across Florida and more than a quarter of a million total jobs in fiscal year 2022, according to a study from Oxford Economics.
Find Out More
WTM Global Travel Report
Tourism Economics is proud to partner with World Travel Market to produce this comprehensive overview of travel and tourism. Consumers continue to demonstrate seemingly insatiable demand for travel despite a complex and dynamic backdrop, including economic and social challenges. By examining the past and looking to the future we can better understand today’s opportunities. We hope this report sparks new meanings and empowers tourism organisations to make bigger and better decisions.
Find Out More
Tourism organisations upbeat despite cost and staffing challenges
Our new Tourism Economics survey - Tourism Industry Monitor (TIM) - identifies optimism as industry experts expect global destinations to surpass 2019 performance in Q4 2023.
Find Out More