LONDON/MALAGA, SpainĀ – Sun seekers are turning to package holidays in Europe as soaring hotel and flight prices revive demand for the all-inclusive deals that had fallen from favour, bolstering the balance sheets of some travel companies. Furthermore, the package deals comeback reflects a shift in consumer behavior. #PackageDealsComeback
The cost-of-living crisis and disruptions from strikes have increased the appeal of fixed-price packages. These packages offer no unexpected costs and easier redress.
After years of travelers creating their own itineraries online, a trend of buying ready-made packages has surged. Travel analysts note this trend accelerated this summer, the busiest since the pandemic.
“It’s something that you think would have died out back in the seventies,” Stuart Hatcher, chief economist at aviation data analysis firm IBA, said. “Since COVID, more people are booking package trips.”
Spending on package holidays in Europe – most popular among Britons and Germans – is expected to reach $117 billion this year, up 11% from a year ago and will hit a new peak of $125.9 billion next year, according to Euromonitor.
The resurgence helped TUI, Europe’s biggest tour operator, to report on Wednesday quarterly results that beat expectations.
The fixed upfront costs and value for money are appealing, said Caroline Bremner, Euromonitor senior industry manager for travel.
“In times of peak inflation, as over the past two years, (packages) enable consumers to budget more efficiently,” she said.
Additionally, this package deals comeback highlights the evolving travel market. As sun seekers count the cost, they are increasingly drawn to the simplicity and savings offered by package deals. Hence, this trend is likely to continue as travelers seek financial and logistical relief. #PackageDealsComeback
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