Why have holiday cost gone up so much

jonnyb1978

Looking for next year holiday and the prices seem extortionate.
Went to Mexico last year and same time, same hotel etc is coming at at 2k more.

Friends went to Dominican and the again same hotel and time nearly 3k more than what they paid.

Grantee, those of for nice all inclusive but even comparing all self catering, long and short haul they all seem a lot more now.


Is this the norm now and we are paying extra. Or will they likely to drop a bit.

pogofish

The dismal value of the pound is one significant factor and of course since we decided that the rest of the world didn't matter, holiday providers have been turning the spotlight elsewhere.

steve1500

Another cost of people voting to leave Europe

jonnyb1978

Honestly don't buy into that. Nothings changed as of yet but more like cashing in on the excuses. 2k is a lot. Certainly too much for any loss of value in the pound. Without getting turning it into a Brexit and politics debate I guess that's just the way it is.

Just priced one up 2 adults and 2 kids (10&16)..2 Rooms they have allocated. £5500

Same holiday for 3 adults and 1 child (10) Same 2 rooms but £7500.

This can not just be the difference in child to adult price as it's way to much. Child price would have to be around £300.

Excuse my ignorance, as I have not got a clue how holidays are priced. There is probably a reasonable explanation.

Duckyduck

Without going into an essay, the value of the pound has dropped significantly since Brexit. Whatever your personal opinion on the consequences of Brexit, the markets didn't like it and the pound has dropped. Oil for the plane is priced in USD, if it's a foreign airline you'll be taking a hit thanks to the exchange rate, the hotels, everything priced in local currency will appear more expensive than this time last year. Last year British travel agents may have absorbed the costs themselves but are unable to do that any longer.

Then there's the demand side, previously popular destinations like Turkey and Egypt are much less popular now and so it pushes demand elsewhere. Without more supply of alternative holidays, demand pushes up prices.

If you don't want to pay the high price, then don't. If enough people make the same decision prices will fall again. A last minute bargain might happen, but you have to accept that you might just end up losing out on a holiday.

jonesMUFCforever

Duckyduck wrote: »

Without going into an essay, the value of the pound has dropped significantly since Brexit. Whatever your personal opinion on the consequences of Brexit, the markets didn't like it and the pound has dropped. Oil for the plane is priced in USD, if it's a foreign airline you'll be taking a hit thanks to the exchange rate, the hotels, everything priced in local currency will appear more expensive than this time last year. Last year British travel agents may have absorbed the costs themselves but are unable to do that any longer.

Then there's the demand side, previously popular destinations like Turkey and Egypt are much less popular now and so it pushes demand elsewhere. Without more supply of alternative holidays, demand pushes up prices.

If you don't want to pay the high price, then don't. If enough people make the same decision prices will fall again. A last minute bargain might happen, but you have to accept that you might just end up losing out on a holiday.

Hasn't the oil price dropped too?

I agree that places that have as yet not had many terrorists attacks have shot up in price compared to the old favourites.

Up to the consumer to decide whether the price is worth paying or booking elsewhere.

Westin

Much of the Caribbean and Mexico will be contracted by tour operators in USD$ so with the weak GBP£ at the moment the cost of holidays to certain destinations will be higher next year.

I would agree that an increase of £2k is excessive. I would suspect with currency movement and general increases with Mexican hotel rates, ground costs and aviation fuel also being purchased in USD$ that year-on-year holiday costs could translate into +15% / +20%.

Teahfc

steve1500 wrote: »

Another cost of people voting to leave Europe

We are not leaving Europe ! Europe is a continent! We have voted as a nation to leave the EU single market. If we leave Europe where do you suggest we go ? North America?

pogofish

Teahfc wrote: »

We are not leaving Europe ! Europe is a continent! We have voted as a nation to leave the EU single market. If we leave Europe where do you suggest we go ? North America?

Plenty who voted would not be able to discern the difference TBH - they just seem to want to disconnect completely from everywhere funny and foreign.

Either way, the pound is down, the number of people booking holidays abroad has already dropped markedly, whilst home-market tourism has risen apace and most of the big holiday providers are rapidly readjusting themselves back to the idea of a mass-market that holidays at home.





Time to be buying shares in Butlins, seaside chalets and Centre Parcs maybe..?

marvin

jonesMUFCforever wrote: »

Hasn't the oil price dropped too?

Oil has risen from its lows due to agreements between producing countries to produce less. It is however around where it was 12 months ago it is bouncing above and below a $50 axis.

Ganga

Is the pound not up on the Dollar since last year?