‘Get ready, Liveline, because summer of bill shock is coming for holidaymakers’

In Cork, managers at two different hotels told me they were considering removing some expensive cuts of beef from their menus. One said the days of the “€50 steak” were inevitable in Ireland.

At my local shop in Co Wicklow fish prices are creeping up due to trawler diesel costs I’m told.

My colleagues in the Independent Farming reported that a “second wave” of price hikes for staples like bread, butter, flour and eggs is imminent, with farmers forced to pass on rising feed, energy and fertilizer costs.

And that was only a week.

Like everyone else, I watch our household bills for groceries, gas, and electricity soar. I pay more at the pump. It already feels like death by a thousand cuts, but holidays are times when we let go a little and spend more on food, drink, and activities. That’s when the costs will really hit home.

Getting ready, live line… this will be the summer of bill shock.

This is not a column about “rip off Ireland”. Of course you can find bad value here just as you can find great value. But inflation is a global problem. According to a survey by financial services firm Bankrate, nearly seven in 10 US adults are changing their summer vacation plans because of price increases.

Twenty-five percent said they would travel less, with a similar number traveling for shorter periods. When you set prices for holidays, airport parking or car rentals in Europe this summer, you can sympathize.

I also feel for honest hotels and restaurants that have lost support from the pandemic, have skyrocketed energy, insurance and supplier bills and are struggling to find staff. Still honoring many weddings booked at 2020 prices.

So what will give?

The government says it has provided €2 billion in cost-of-living support, but there is no sign of new stay and spend stimulus and VAT is set to rise from 9 percent to 13.5 percent in September.

There’s money out there and pent-up demand. As hotels and restaurants try to balance business fundamentals with price hikes, I think we’ll see shorter menus and cheaper cuts of meat and seafood (neither of which are inherently a bad thing – I’ve always preferred a few well-prepared dishes) and a sneak up on inclusive services.

Consumers can also cut their clothes. The best Irish food is the best in the world, but after spending hundreds of pounds eating out over the Easter holidays, I’m taking a fresh look at how we budget for family outings.

The concern is that rising prices will deter customers (real or imagined) and cause collateral damage to hospitality.

I don’t see a silver bullet. I guess we can travel off-peak, fish unused coupons, book hotels direct, order meals, use flight comparison sites, take out excess rental car insurance, and poke around.

We can also remember that while vacations are bad for the bank account, they are good for the soul. And that these are issues we would have walked on nails for in lockdown.