The price of a trip to favorite destinations in 2024 is likely to increase by 20%, according to travel agents
As demand for flights and holiday packages continues to outstrip supply, mainly due to impediments in delivering additional aircraft, Irish passengers are facing higher prices to chase the sun next year.
Soaring jet fuel costs resulting from higher oil prices in the Middle East have also contributed to airfare hikes, forcing some European airlines to hedge against future price increases. Primarily due to difficulties in the aircraft supply chain, Ryanair has announced that the cost of flights will increase next year. This is stated in the material of thetimes.co.
"As customer demand continues to grow and European short-haul capacity stagnates, airfares are expected to rise next year. As always, we urge customers to book early to ensure the lowest fares when planning their travel," said a spokeswoman for the airline.
Derek Keogh, managing director of Group Travel International, said that the cost of his group tours for next year has already increased by about 20%. He added that more competition between airlines is needed to reduce prices.
"A lot of travel companies were not charging enough, and now they have gone the other way around. In terms of overall tourism, it's not just air travel - it's hotels, buses...," Keogh said.
Mary Denton, executive director of Sunway Travel, said that the 2024 vouchers provided by her agency were 10% more expensive than this year. However, she said, the number of bookings is still high, as Irish vacationers tend to be "committed" to annual trips abroad.
"The majority of Irish people, we have found, consider saving for their annual vacation a priority, even when times are tough," Denton said.
Alan Lynch, managing director of Travel Escapes, noted that the cost of his packages was on average 7-12% higher than last year.
A spokeswoman for Cassidy Travel also predicted that next year the cost of vacation packages will increase by 10-15%. She added that there is a growing demand for ski vacations and, in particular, for active or group trips.
Dudley Shanley, head of aviation and travel research at Goodbody stock-brokers, said the rise in air travel costs is a result of the supply and demand dynamics caused by the pandemic.
"Although demand has returned to pre-pandemic levels, supply has not, and as a result, the price of vacations has increased significantly. Preliminary data from major travel companies indicate that the number of bookings for summer 2024 remains high, and prices will be higher compared to last year...", Shanley emphasized.
According to Tim Williamson, chief customer officer of Responsible Travel, a travel company that focuses on environmental sustainability, the growing use and cost of clean jet fuel have also contributed to the increase in flight costs.
Eoghan Corry, a travel commentator and TV presenter, predicted that airfares will rise by 20% next year.
"Not all airlines have returned to pre-pandemic levels, and those with ambitious growth targets, such as Ryanair, are having trouble supplying aircraft due to Boeing assembly line delays, while Airbus airlines such as Wizz and Lufthansa are facing forced shutdowns due to Pratt & Whitney engine issues. An additional effect will be higher airfares across the continent," said Corry.