Expensive vacations in Europe

2024-07-07 08:20:00, Aktualitet CNA

A weaker dollar, higher prices and "record" numbers of visitors await you in Europe this summer, writes CNN.

Temperatures are rising. Hotel prices have skyrocketed. And the tourists, as usual, have started misbehaving. Welcome to another summer in Europe.

Judging from the headlines, the situation looks messy. Famous places visited by tourists are increasing their entrance fees. Hotel rooms are very expensive. And the Dollar has fallen, both against the Pound and against the Euro.

Another problem is the crowds of tourists.

"There has been a significant increase in demand in the past year," says Tom Jenkins, head of the European Tourism Organization, citing the influx of American tourists to Europe as an example.

"In 2023, prices were higher than in 2019, and this year, we expect a new record, especially of American tourists in Europe."

Kayla Zeigler agrees with that assessment. As the owner of the tourism firm Destination Europe, she notes that there will be "record numbers" of tourists on the European continent this year.

Graham Carter, director of tour operator Unforgettable Travel, with 90% of its customers from the US, says he expects Europe to become more expensive this year.

"People ask, is it worth going to Europe?" he says. "Pre-reservations have been many and the prices very high. There has been a huge demand for travel in the last three years and many countries are raising prices."

Is summer in Europe already a money grab? According to experts, it depends on how much sacrifice you are willing to make.

Expensive vacations in Europe

Weakening of the Dollar

First, American tourists are at a disadvantage due to the weakening of the Dollar. On June 5, $1 was worth about 91 or 92 cents, at average market rates.

Of course, this is a better figure than the five-year low reached in December 2020 – January 2021, when 1 dollar reached about 82 cents.

But it has fallen from a year ago, when the dollar was worth about 95 cents, and is well below the five-year high of last September, when the dollar peaked at 1.04 euros, according to conversion specialists. of currency.

For Americans traveling to the UK, the situation is similar. At this time last year, $1 was worth 80 pence. A dollar is now worth 78 pence, down from a peak in September, when a dollar was worth 83 pence.

The dollar is also down year-on-year against 11 other European currencies. From Bosnia to Bulgaria, Denmark to Iceland, Poland to Romania and Sweden to Switzerland, travelers who exchange dollars will suffer losses.

Although a few cents on the dollar doesn't make a huge difference when making a single transaction, small drops can have an impact on credit card bills when Americans return home. A hotel room booked for 500 euros is worth $543 at the average market exchange rate, while in September, the same room would be worth $480.

However, it's not all bad. In Europe, the dollar can be conveniently exchanged with three currencies: the Czech koruna (21.9 koruna to one dollar last year, compared to 22.7 now), the Hungarian forint (from 344.7 forints to one dollar last year, to 359.4 this year) and Ukrainian hryvnia, although the latter does not come into much use because no one will think of going on vacation to Ukraine this year.

One currency against which the dollar is extremely strong is the Turkish lira. Last June, visitors exchanged one dollar for 21 lira; now, for one dollar, they can get 32 ??lira.

Extraordinary increases in hotel prices

Inflation has increased and entry fees are also increasing. The Eiffel Tower will increase prices by 20% starting June 17. To enter the Hagia Sophia in Istanbul, you now have to pay 25 euros. Venice charges day travelers €5 during peak tourism times.

However, these entry fees don't weigh as much on tourists' pockets as hotel bills. Jenkins says prices have risen "tremendously" in big cities. Tim Hentschel, CEO of HotelPlanner.com, agrees.

"Hotels that last year offered a room for $300 a night are now offering it for $500," he says.

Of course, hotels have not spontaneously raised prices. This has a lot to do with increasing demand, he says. As hotels fill up, the remaining available rooms become more expensive.

"Prices start to rise because of demand," he says.

“So when 90% of the rooms are booked, a room that costs $350 can go up to $500. This does not mean that the hotel gives away all rooms at the price of $500. Many sell for $250. Late tourists are the ones who pay $500."

Data from Hotel Monitor, American Express Global Business Travel's annual analysis of hotel rates around the world, supports his theory. According to forecasts, in many large European cities, hotel room rates will increase by about 10%. In Paris, Amsterdam and Dublin, they are expected to increase by 10-11%, while in other cities such as Berlin, Stockholm, Barcelona and London, they may increase by 9%. You should learn from this not to delay bookings.

The good news is that Hentschel says these price increases aren't across the board, but mostly at the top hotels. Therefore, he advises to become more modest and find a cheaper place, with fewer conditions.

"One- and two-star hotels have not been affected by the price increase," he says. The same applies to hotels located far from the most popular areas.

"Go to Murcia, not Marbella, to Milos, instead of Mykonos," he says.

“You'll enjoy the same sunset and shoot the same photos for Instagram, only for a tenth of the price. These aren't the worst places, they're just not yet on the popular travel lists that people follow.

If you want to go to a popular city, try to find a hotel in a suburb further away, he says. For example, in London, in a 5-star hotel, the price reaches £1,000 (about $1,270) a night.

"But if you go outside the London ring, three- and four-star hotels don't charge more than £100 a night."

His top tip for London? Visit Windsor Palace, home of the Royal Family, by taking the train to Paddington Station. The route takes only 29 minutes.

Another good idea is to book in a 3-star hotel in a less touristy location. It would be financially viable, even in the peak summer season of 2024, he says.

Expensive vacations in Europe

Cheaper tickets

It might not seem like it, but US-Europe airfares are coming down, says Hayley Berg, an economist at the firm Hopper. The firm's data, which aggregates all flight requests worldwide, shows that the average airfare from the US to Europe this summer has dropped 16% to $892 round-trip.

She says that "Europe is down this year".

For major destinations, the prices are even better. Hopper data from June shows that the price of an average flight from the US to London is down 21% year-on-year. On the continent, there has been a remarkable double-digit reduction in flight prices to major destinations such as Rome, Barcelona, ??Athens and Paris, with 34%, 37%, 28% and 38% reductions respectively, for June, July airfares and August.

Of course, prices are still higher than in 2019, but they have reached the level of 2017 and 2018, indicating that the wild rise in prices after the pandemic may be over. Berg calls this "a path back to normal prices".

Expensive vacations in Europe

Away from the madding crowds

Nobody likes crowds. As the number of visitors increases and places like Venice have introduced tourism taxes, while other places like Mallorca are protesting against tourism, some people want to stay away from the most popular European destinations.

Jenkins says there is a "softening of demand" for "major cultural cities".

Clients of the Carter travel agency try to avoid July and August because of the crowds and extreme heat, preferring the months of May, June and September. But even in these less busy months, crowds are still a concern.

"We have many clients who want to avoid Venice, Rome, Florence," he says. "People say: 'We want to visit Italy, but we want to avoid the crowds'."

They are doing the right thing. In 2023, Italy recorded 134 million "arrivals", the highest number of visitors in history, according to data from the Ministry of Tourism.

Half of them were foreign visitors and there are signs that the figures for 2024 will be even higher, thanks to what the Minister of Tourism, Daniela Santanchè, has called a "targeted strategy".

Zeigler says every customer making a reservation at a popular spot this year gets to know the situation before they go.

"We prepare customers visiting popular tourist destinations for crowds and in many cases schedule the tour and activities at peak times so they have the most enjoyable experience possible," she says, adding that hotels are often booked out. outside the main places: for example, for those visiting the Amalfi Coast, hotels are booked that are located in Praiano and Ravello, not in Amalfi and Positano.

Carter is sending travelers to more rural regions, such as Puglia and Sicily, or advising them to try a new country, for example Slovenia instead of Italy (for mountains and wineries) and Croatia instead of the Greek islands. .

Ireland and Portugal are also becoming increasingly popular with customers.

Jenkins has one main country to advise: France. Olympic host cities typically see a drop in tourists during the Olympics, he says, and since Paris attracts most visitors to France, the rest of the country may be less busy than usual.

His prediction appears to be coming true: although analysis by Amex GBT predicted an 11% increase in hotel rates in Paris this year, so far, they have increased by just 8%. The 38% drop in air tickets to Charles de Gaulle Airport looks very tempting.

Those sticking to the usual destinations should note that this year has seen price increases for leisure activities, says Hentschel, who just booked a trip to the Amalfi Coast for a client, including a 60-minute massage. for a full $400.

"Travel is at historic highs and inflation is high," he says.

"The prices of such activities have gone to stratospheric levels." They're also selling fast, so if you want to reserve, be quick. Zeigler says field costs are about 30% higher than in 2019.

Expensive vacations in Europe

Is it too late now?

Is there still time to plan a European summer, or is it too late?

Book your flight quickly, advises Berg, because prices will only go up. Or "if you can be flexible, book for September".

It anticipates similar annual fee declines, in addition to the regular 10-30% price drop in the fall. Otherwise, wait a year. Berg predicts that US-Europe tariffs will remain the same or decrease for 2025.

Hentschel advises vacationers booking late to try "alternative accommodation." Skip the good hotels, stay in hotels that are further away from the tourist centers, or try B&B accommodations.

Carter says there are still places available in July and August, but cautions that customers shouldn't wait until the last minute. However, in fairness, it advises people to skip it altogether this summer season.

“I just wouldn't book in the summer at this time. I'd aim for fall 2024 or spring 2025, to make the most of the holidays.

"I think this summer, you're just going to be stung by the prices."

As Hentschel says: "The earlier you book, the more you'll save." As the numbers continue to grow in Europe, make this your travel motto for the future./ Monitor.al