Continued uncertainty surrounding Brexit; the depreciation of sterling, the rising price of oil and ongoing geopolitical fallout, may all create a rise in holiday prices during 2017, new research from Travelzoo has suggested.
The company said that almost a fifth of the 15 travel firms it had surveyed believed the increase in holiday prices “could be as high as 15-20%” in the coming year.
In addition, Travelzoo said 80% of UK travel businesses questioned, said they were “bracing themselves” for price hikes in 2017.
Joel Brandon-Bravo, Travelzoo’s UK managing director said: “The impact of sterling’s fall in particular has not really been felt in holiday pricing to date, however all the signs are pointing in the direction of price hikes for many popular holiday destinations in 2017.
"Until now British travel companies have been absorbing some price increases on costs such as hotel rates set in euros and many have been selling holidays at prices set before the June referendum.
"Businesses cannot do this indefinitely however and we expect pricing for next year’s holidays to increase by at least 10%. For almost one fifth (17%) of those we spoke to the increase could be as high as 15-20%.”
Brandon-Bravo said that Travelzoo’s 2016 Travel Trends research, which surveyed the holiday habits of 1,008 consumers, showed a growing desire to look “beyond Europe” with 25% of those questioned saying they are “avoiding” European holiday destinations.
Travelzoo said it attributed the change in attitudes to travellers trying to avoid being stung by the pound’s drop in value and a desire to bypass safety concerns following a string of major terror attacks in mainland Europe.
The company believed South Africa, Montenegro, Oman and Sri Lanka were likely to see a rise in UK tourists in 2017 as they offered Brits “good value for money”.
Brandon-Bravo added: “For those looking to minimise the impact of these imminent price hikes we would advise consumers to consider the following: book early for peak holiday periods such as summer 2017, consider destinations that have more favourable exchange rates and be open-minded about which country you visit.”
