Travel agents predict a summer travel boom despite rising inflation

If the Covid pandemic has taught us one lesson, it is that we never know what will happen tomorrow. The ranking of priorities in life has changed in the post-pandemic world and enjoying a summer holiday -whether to distant shores or closer to home - has climbed up the rankings to become something that cannot easily be dropped by anyone, even if they make an extra financial effort to afford it.

This is confirmed by the travel agencies in Granada province, which have been closing holiday bookings for several months and are predicting a summer with a real travel boom despite the problems with spiralling inflation. The desire to travel is overcoming the spirit of saving despite the escalating prices of hotels, flights and tourist services, which have increased the prices of package tours by an average of 25%, according to the provincial association which represents travel agencies.

The summer of 2023 will see the most expensive package holidays in history, but the people of Granada are not going to stay at home.

"There is a great desire to travel and people are booking with a lot of enthusiasm in spite of the price increase that the agencies feared so much. The best thing and what we value most is that they are not only being booked for the summer. People are planning ahea and booking in advance and many trips are being made that help us survive throughout the year. People want to go to see a concert in Barcelona, or go to Paris or Berlin for three or four day breaks," said the president of the association of travel agencies in Granada and manager of Cultural Travel, Juan Peláez.

As for the favourite destinations of the people of Granada this summer, the Andalusian and coastal beaches in Spain in general are the undisputed stars, but in the case of the agencies, with a customer profile that often books long-distance trips, they also see a strong resurgence of all European and international destinations. This summer they are once again selling trips to Egypt, the Caribbean, Bali, and Japan with flights from Malaga or Madrid, and the countries of former Eastern Europe have also become fashionable.

If the association of travel agencies of Granada had to make a ranking of the best-selling destinations for this summer it would be headed by the north of Spain and especially the Asturias, thanks to the attraction of family and cultural trips, also boosted by the direct Volotea flight that has been operating for several weeks from Granada. This is followed by bookings for trips to the Canary Islands, also boosted by the new direct flights, despite the fact that ticket prices are sky-high, at over 243 euros on average for this summer. The Caribbean is another of the star destinations for people in Granada. The Dominican Republic and Mexico, with departures from Madrid or Malaga airports, and now during summer with local charter flights from Granada are proving very successful, at an average of 1,300 euros for seven-day packages.

The companies have also scheduled charter flights to Egypt this summer. A combo with a cruise on the Nile is another of the destinations in the 'Top 5' of summer 2023 for Granada locals who have booked with the travel agents. Paris closes the ranking, with the unavoidable visit to Disney for couples with children.

"It is the flight that has gone up the most, by over 30%. Of course, they all change quite a lot depending on the time of year you travel. If you limit yourself to August you are forced to pay that 30% more", summed up Ángel García, manager of the Vista Travel travel agency. This company from Granada is among the most important air consolidators in Spain, the agencies that collaborate with platforms that manage airline tickets to national and intercontinental destinations.

"What justifies the increase in travel prices is that airlines have not yet returned to pre-pandemic frequencies, there is a lower volume of flight operations to destinations that are in high demand," the expert said. Flight seats are being taken up so quickly that they are going up in price.

"Fares are dynamic and increase as availability reaches a minimum. So low cost airlines can end up offering higher prices than regular airlines," he said. In addition, the strategy of the companies has changed and they start with cheap fares that become more expensive - a minimum of 50 euros per ticket - as soon as something as basic to travel as a suitcase is added. "After the pandemic, there is also a lack of planes in the market, when they stopped being produced," García pointed out. In addition to these specific factors, the rise in travel prices can be explained by the simple law of supply and demand: the tourism companies that suffered during the Covid pandemic are now selling a lot of packages, so they do not see a need to lower prices.

"The days of flights for twenty or thirty euros are over. Costs have risen throughout the chain. Hotels, airlines, tourist guides.... They have all become more selective and impose their prices", summarised the president of the association of travel agencies, Juan Peláez.

For the moment, the travel agents are keeping their finger on the pulse of advance bookings. "Even the younger public and those travelling to Europe who didn't use us before are now trusting the agencies, and those who didn't use us before are coming to us," he concluded.