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Holiday prices set to rise due to Brexit
Holiday prices are set to rise further due to Brexit, operators predicted this week at the ABTA Travel Matters conference.
Data from Travel Trade Consultany revealed average selling prices for summer 2018 are already up 3% over last year.
Cosmos CEO Giles Hawke said his average selling price was up ‘quite significantly’, adding that it was likely to rise further in 2019.
The fall in the value of the pound following the referendum has already increased operators’ costs, while the loss of freedom of movement could also have an impact.
"British consumers are already suffering today because of the Brexit vote," said Hawke. "I think holidaymakers will find over time their holidays becoming more expensive because it’s a global market and already hoteliers are saying to us that if we don’t pay the price they are asking they will sell them somewhere else."
Dnata Travel Europe MD Lisa McAuley was more upbeat, saying overseas hoteliers still see the UK as a major source market.
However, Paul Carter, CEO of Hotelplan UK, whose brands include the ski operators Inghams, Ski Total and Esprit, said Brexit was likely to add around £30 to £50 to the cost of a chalet holiday as staffing costs are likely to rise if British operators are no longer allowed to post UK staff overseas.
Carter said that while the company was looking at replacing British staff with European staff overseas, they would have to pay higher wages to comply with local employment laws.
While ski operators are lobbying both the British government and local authorities overseas to stress the value of chalet holidays, he said it was possible their existing business models would have to change.
Hotelplan employs 1,200 British staff overseas in the winter, including 230 ‘elves’ in Lapland, nannies and chalet hosts. "The freedom of movement does challenge us, we do have options but I think it is likely chalet holidays will be more expensive and so there will be fewer chalet holidays in the future and maybe more self-catering instead," he said.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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