Vacationers will be confronted with price increases of up to 16 percent this summer

During the high season of summer 2019, the average price for a holiday in Lanzarote was around €746. However, the same holiday this summer has increased by €85 or 11 pieces.

A holiday in Gran Canaria that cost an average of €810 in 2019 will now cost an extra €73 in 2022 – an increase of 9 per cent.

However, the price increases are even higher for the Algarve in Portugal, a favorite among Irish holidaymakers, where prices are up around €118, or 16 per cent, compared to 2019.

The prices, all based on a seven-night stay, show increases of 40:60 between airlines and accommodation providers.

The pent-up demand of those who haven’t traveled abroad in 2020 and 2021 is believed to be partly responsible for the rising prices, allowing airlines and hoteliers to raise rates.

“We’re now comparing three years of price volatility and I think the main reason is that we don’t see price increases during the peak months in the fall,” Mr. Hackett said.

“If you can travel outside of these peak times, you can still find value.

“In the low season there is almost no price increase. These price increases appear to be concentrated in the months of July and August due to pent-up demand and the fact that families and all of us haven’t really taken a vacation in three years.”

Another price-driving factor is the early booking volume for the high season in summer 2022.

“People got amazing value by booking in December 2021 and January this year while there were sales,” Mr Hackett said. “But I think airlines may be of the opinion that July and August will definitely fill their seats. It will be interesting to see what happens around Easter time to see how strong their resolve is on the price.”

The price hikes hit couples harder than families. For a couple traveling to Lanzarote or the Algarve in July or August, the package price difference compared to 2019 is €123 and €124 respectively. Families heading to the same destinations can expect an average increase of €92 and €108 in 2022.

Meanwhile, rising fuel costs will be passed on to passengers as airlines are expected to impose further fuel surcharges on long-haul flights or trips to US destinations.

However, some airlines have already stockpiled fuel in anticipation of global price hikes. Ryanair, for example, has already brought fuel supplies needed for all flights in 2022.

Rental car costs have also increased significantly in 2020 due to supply problems with computer chips for automakers.

The war in Ukraine has forced many to wait before booking a trip abroad.

“Post-Covid consumer confidence is fragile and easily shaken, and the war in Ukraine is also a concern,” Mr Hackett said. “It’s not that people think they will be affected in the Canary Islands, Spain or Portugal, but they are emotionally affected by the situation there.”

Be smart and beat sneaky charges

1. Travel light

How often have you packed too much for a vacation? Baggage fees are an easy way for airlines to make money and increase the cost of your flight.

Use free carry-on options when you can, with one large suitcase for the whole family — saving hundreds on airfare.

2. Don’t sharpen

If you can, work around peak holiday periods to book a vacation. This may mean traveling to a sunny destination in May or September, but it will give you a significant saving over traveling to the same place in peak season. And with that in mind, you should aim to optimize weekday bookings.

3. The early bird…

For many consumers, it’s not good to jump into what appears to be good value early on in a holiday booking.

Many of us like to think about the finer details of what a particular resort has to offer or what facilities are available in the area for the kids.

But our booking habits have changed since the pandemic, as has the way hotels and airlines offer deals. So if you find something that looks like good value for money, it probably is.

4. Insure yourself

Covid-19 has taught us how important pandemic-proof travel insurance can be. So remember to protect yourself and your family from unexpected virus emergencies when traveling abroad.

For rental cars, it is advisable to take out your own insurance policy rather than that of the car rental company, which will be more expensive.

5. Breakfast of Chumps

If you didn’t secure an inclusive breakfast deal when you booked your hotel, resist the temptation to dine there for your first meal of the day. Hotel meals always come at a higher price to a nearby cafe or restaurant because of the overhead and well…because they do just that.

Be smart and save even more by venturing somewhere nearby.