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European holiday price rise could impact tourism in 2017

21 November 2016 09:18

Consumers could postpone holidays if prices rise too high, experts warn

Consumers could postpone holidays if prices rise too high, experts warn

A holiday price increase of 10% on trips to Europe could cause tourists to postpone their getaways next year, experts are warning.

Despite general optimism for tourism in 2017, panellists at The Midcounties Co-operative Travel event in Portugal last week admitted there are fears consumers could postpone holidays if prices rise too high.

Prices already rising

Steve Campion, managing director of agency Travelbubble and price comparison site Holiday Discount Centre, says prices are currently up 5% to 10%.

He said: "Holidaymakers are resilient, but if sterling does lose a lot of value against the euro and there are increases in excess of 10%, there will be reduced volumes of travellers."

Monarch Travel Group head of trade sales Simon Garrido added: "If costs rise that's got to be paid for out of margin or passed on to the customer. A lot of business is hedged, but that will inevitably come to an end."

Stephen Eccles, commercial analyst at Midcounties, said: "The bigger worry is aviation fuel going up. This is a double whammy that will feed through."

Hopes to Turkey's tourism

Campion and Eccles both say they see potential for tourism in Turkey to recover next year . According to GfK figures, Turkey is trading 32% down for summer 2017, although the Co-op consortium's sales are 2% up.

Campion added: "Turkey could return if it can stay terrorist-free. If you have hotels in the Med putting up their prices, there is a danger they will lose share."

Tourists are to take out comprehensive travel insurance before travelling to the country.