Almost half will go on holiday abroad this summer. It can be record expensive, economist believes.
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Have you managed to get over the first obstacle to have valid passportdoes not stop the holiday challenges there:
– Prices will rise further. There is reason to believe that there will be new records during the summer, that prices will be sky high, says macroeconomist Dane Cekov in Nordea Markets to VG.
One of the reasons is that airline tickets in April were already at «summer level». Because many want to go abroad, it is likely that they will move on this summer, he thinks.
Although inflation is high in other countries as well, it is primarily airline tickets and hotels that make the trip abroad expensive. And they are expensive for several reasons:
- Fuel costs (increased oil prices)
- Higher demand (many want to go out and travel)
- Increased labor costs
- Change in preferences (many have saved during the corona and pay what it costs to get abroad).
–Air fares up 40 percent compared to a year ago.
– It is quite clear that aircraft and fuel prices have increased a lot in price. Then there is a very high demand for air travel and hotel travel after two years with corona. At the same time, capacity has probably been reduced during the pandemic. Many airlines and hotels now struggle to get employees and have to pay more in salaries to recruit new employees. It helps to influence prices.
Airport chaos
There is already chaos at many airports and flights that have been canceled, partly because they lack manpower.
Because while demand is high, many countries have had to lay off people during the corona, for example at airports and in the hotel and restaurant industry. Now they are struggling to recruit employees. Thus, many are looking for labor, which leads to increased wages and increased prices for us who pay, he explains.
– Everything indicates that it will be a more expensive summer holiday, says Cekov.
–Spain most popular
Virke’s latest survey shows that 49 percent of these say they probably spend their holidays abroad. Of those who go abroad during the summer holidays, Spain (26 per cent), Denmark (26 per cent) and Sweden (24 per cent) are the most popular destinations.
If we consider Spain, the euro on Monday is around 10.14 per krone, a rate that has been stable for a long time. In comparison, the exchange rate was 9.6 July 2019, the «normal year» before the corona.
In addition, inflation is higher in countries such as Spain (8 per cent) than in Norway (5.4 per cent), which means that the price of goods and services is rising.
But Cekov emphasizes that it is the airline tickets and hotels that make the biggest dent in the holiday budget.
– There are marginal changes in the exchange rate, but the most important thing is that many will travel abroad, hotels have burst capacity, and there is an extremely high demand for all the experiences we have been prevented from during the corona.
– I think the price plays less of a role now than before. No matter what the price, you are willing to go.
Prices are rising sharply, and this may also have an effect on your summer holiday. Here are some things you can do to avoid going on a financial holiday:
More expensive than before the pandemic
That prices are rising, confirms Terje Berge, commercial director of FINN travel.
The thing that goes up the most now is if you only book flights without a package tour.
– It has become more expensive than it was, even before the pandemic. It is also about the oil price and air costs, and that there are fewer planes in the air than before.
-Then it varies a lot where you go: Turkey has an insanely cheap currency now. There are many Norwegians traveling now, because it is so cheap, he says to VG.
He says it is clear that people have money and pay what it costs to get abroad.
A curiosity is that more people are now looking for travel than before the pandemic, but there are not as many bookings as before the pandemic.
– There are many who apply and wait. The big mystery is why not everything is sold out.
His clear call is not to wait to order. And a stable tip:
– During the school holidays, two people can travel to both Spain and Greece for NOK 10-12,000 on a charter. So there are opportunities.
This is how you can avoid holiday bangs
And once you have landed at the airport and picked up your luggage, more people will come across another service that has taken off, namely rental car:
– Rental cars have increased insanely in price – the rental car companies do not have enough cars because they sold themselves under covid, says consumer economist Cecilie Tvetenstrand in Storebrand.
– We already see that much will be more expensive and there is record high price growth, so that it will be an expensive summer, you can say quite well.
–She comes up with some tips that will make you have enough money left over after the holidays to handle the price jump this autumn:
- Pay in local currency (not in Norwegian kroner, which is often an option when you pay by card)
- Check if there are local cheaper rental car providers near where you are going to stay, instead of renting from the airport
- Have a holiday budget
- Make sure you have the insurance you need
For the record: Finn.no is owned by Schibsted, which also owns VG.
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