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.
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