Friday, June 24, 2022

Industry and consumer share concerns over the future cost of travel

Industry professionals are almost equally split over whether only the wealthy will be able to afford holidays in the future, reveals research released by WTM London, taking place at ExCel London.

Some 1000 professionals from around the globe were asked about the impact of the widely anticipated price increases as a result of the pandemic on the overall market. Just over half (51 per cent) were concerned that travel will become the preserve of the rich, with 49 per cent disagreeing.

The WTM Industry report also asked about the scale of the increases, with the net result confirming that prices are set to go up in 2022. More than one-in-three (35 per cent) of the sample said prices were likely to go up by between 1 per cent and 20 per cent compared with the current year. However, intense cost pressures and the need to recover revenues lost during the pandemic mean that more than one-in-ten (12 per cent) are expecting put up prices by more than 20 per cent.

On the other hand, some are anticipating prices to drop with 15 per cent predicting a modest drop of between 1 per cent and 20 per cent, while 9 per cent said their company’s prices would fall significantly, by more than 20 per cent.

Around one-fifth (22 per cent) expect prices to be the same.

UK consumers are also aware that the twin impact of Covid and Brexit on prices has the potential to impact the affordability of travel, with 70 per cent admitting this is a concern for the future.

Simon Press, WTM London, Exhibition Director, said: “In the UK, the total cost of overseas travel for summer was skewed by having to pay for testing, while the demand for staycations led to supply shortages and price hikes. These specific pressures may or may not still be applicable for next year, but the results from the industry are unequivocal – prices will rise in 2022.

“Many sectors in travel were moving their consumer messaging towards ‘value’ rather than ‘cost’. The challenge for the industry is to ensure that they can provide a product and experience which justifies the price increases to the traveler and which retains their margins, but without pricing themselves out of the market.”

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