Cost of the family holiday is on the rise
Most families look forward to their annual break when they can get away from the stresses of everyday life and enjoy some quality time together in a relaxing and enjoyable atmosphere. However, many families have found it far more difficult to get away on this much awaited break over the last couple of years, partly due to rising interest rates on mortgages two years ago, when interest rates soared to 5.75%, and more recently due to increased living costs and bills, which continue to put a real strain on household finances, leaving very little money to spend on luxuries.
To make matters worse a recent report has suggested that the cost of the average family holiday has rocketed by around £400. This is based on a family of four going away on holiday for two weeks. The report suggests that holidaymakers have been hit in two ways – once by the rise in the cost of a holiday for the family, and also by the fact that tour operators and travel agents have actually cut the number of holidays deals on offer, which means that the cost has gone up but choice has gone down for consumers.
One major tour operator, Thomas Cook, is said to have slashed the number of holiday deals to Spain by a quarter, and the number of trips to the Balearic Islands has been cut by around 20%. Holiday deals to Portugal, Malta, and Italy have also been cut according to recent reports. At the same time the average cost of a holiday has risen by 14% over the past three months along according to Thomas Cook officials, adding a small fortune to the cost of the average family holiday.
The report also suggests that the reasons behind these trends include the weak pound, the high cost of oil, and the global credit crunch, stating that the over-supply of cheap, affordable holidays is now drawing to an end.
An official from Thomas Cook said: ‘People are cutting back on their travel expenditure. This is all driven by the fact that costs are going up. Oil is soaring. It may have dropped back to $114 a barrel – but it was only $60 last year.’
He also said: ‘Spain is the country where we are cutting back most on capacity.
Holidaymakers are hit by the weakness of the pound against the euro. So not only do the holiday costs increase, so does the cost of going out for a meal. There are also higher food and labour costs in Spain.’
Another industry official has said: ‘A holiday is still the last thing to go. They are still incredibly good value. But there are fewer cut-price deals around. There was over-capacity last year, with some firms making little or no money on some deals. The cutbacks have brought stability to the market. That may mean consumers paying more for some holidays. The big growth areas are Turkey and Egypt, with Spain and the Western Mediterranean bearing the brunt of the cutbacks. Spain is still the biggest holiday destination, however.’
Tags: Labour, weakness, market, holiday costs, fortune
The living has become increasingly more expensive, and going on holiday is no more a priority amongst families.
Unfortunately, the recession has beaten hard consumers. Luckily, there are still opportunities for those who cannot renounce to their vacations. In fact, the solution is closer than you can imagine. Take advantage of favourable ExchangeRates and fly where it is actually cheaper for you to buy a holiday. Turkey has been the top ten destination in 2009 and million of British Holidaymakers have flown to Turkey this year. Budget airlines now allow you to purchase affordable airfares online, which depart regularly from the major airports. There is also a wide range of hotels and resorts which offer competitive rates, as well as good service and all the comforts that you need, there are plenty historical places to visit out there as well as outdoor activities for all the family members.