The CEO of TUI, Sebastian Ebel, has stated that the era of affordable flights and last-minute getaways is drawing to a close.
He explained that due to high demand, prices for package holidays and last-minute flights will be more expensive this year. Ebel cautioned that finding last-minute holiday deals during the summer will be challenging and indicated that the era of extremely low-cost flights is coming to an end. This sentiment is in line with earlier statements made by Ryanair CEO Martin O’Leary, who announced that there would be no more £9.99 fares for the summer.
Ebel attributed the rising prices to the exceptional demand experienced by the travel company, as people are eager to go on vacation despite the increasing cost of living. In previous years, unsold holidays were often offered at discounted rates shortly before departure, but the current high demand is expected to limit such deals. Ebel stressed that prices are more likely to rise rather than decrease just before departure, as hotels and airlines are aware of the trend of last-minute bookings. He stated that spontaneous bargains would be rare exceptions rather than the norm.
TUI is on track to achieve profitability this year after fully repaying the government for the assistance it received during the pandemic. Greece has emerged as the most sought-after destination this year, with some TUI hotels already fully booked for the summer. Turkey and Spain still have ample availability. Despite the challenges posed by the cost-of-living crisis, a study revealed that holidaymakers still intend to embark on two trips abroad in 2023, albeit with adjustments to their travel plans. The study found that the average traveler has £300 less to spend on their next trip, prompting changes such as choosing closer destinations and opting for shorter vacations. Travelers also feel increased pressure to ensure that their holidays deliver value for money.
For those seeking cost-effective travel options, selecting a country with a favorable exchange rate compared to the UK pound is a recommended strategy. Earlier this year, Cape Town in South Africa was identified as an ideal bargain location due to the weakening South African rand. Travelers visiting Cape Town can expect to receive nearly £68 more in rand for a £500 currency transaction compared to last year.
