Tourism: trips are 12% more expensive this season

With prices rising by 12% compared to 2022, Greek hoteliers are signing agreements with tour operators for this season.

Greek hoteliers signed contracts with a price increase of 10-15% for the 2023 season with major travel agencies abroad. This increase concerns tour packages sold in major European countriessuch as Germany and England, tour operators TUI Group, Der Touristik, Apollo, specializing in the markets of the Nordic countries, Seniorenreisen (Austria), Ideal Tours, Springer Reisen and others.

Despite the rise in prices, which is a logical consequence of inflation and high demand for holidays in Greece, major travel agencies expect that in this year will be able to sell even more tickets. The upgrade range varies depending on the popularity of the destination as well as the countries from which the booking is made.

However, it is worth noting that the increase in prices for direct bookings made by travelers exceeds 100% in some cases. Thus, the total cost of a travel package for a family who wants to travel from England or Germany to Greece is significantly increased due to the rising cost of passenger air travel and increased demand for holidays in the Mediterranean. A price correction is expected over the holidays as lower disposable income for European households due to inflation constrains the relative budgets of the 2023 summer vacation.

Characteristically, according to a PwC survey (among 1,000 Germans aged 18 to 65), the propensity to save money for vacation shows a slight decrease compared to the corresponding survey conducted in the spring of 2022. Thus, it was found that 58% hope that their financial situation will not worsen and may even improve in the first half of this year compared to the corresponding indicator of 67% in April 2022. At the same time, almost half of the respondents characterize their financial situation as bad (compared to 2022). However, more than 70% of package travelers are considering a more economical or shorter vacation.

These findings are not of particular concern to major travel agencies or Greek hoteliers, as the reserve demand for holidays in Greece is such that it can allow other travelers to “close the gaps” and make 100% bookings.

In addition, according to the PwC survey, the majority of German households are planning to cut their spending in other areas in order to “set aside money for summer/holiday vacations.” At the same time, jewelry and furniture, for example, are at the top of the list of spending cuts: 66% and 59% of Germans said they did not intend to make relevant (not so important and necessary) purchases this year.

Similar are the reports from the British market, which, together with the German market, are the two largest from which Greece attracts visitors. In fact, a survey in the UK shows that 34% of those planning to travel say they will take longer holidays this year compared to 2022. The percentage of those who said they would take a shorter vacation in the same survey was 25%. A minority (20%) of those Brits who won’t travel say the main reasons are shrinking disposable income (66%) and inflation (48%).

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