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. In Mallorca higher holiday costs meant that the spending power of tourists was hit hard. Bars and restaurants have reported a big fall in takings.
The combination of a cost-of-living crisis and disruption from strikes and glitches has added to the appeal of a fixed-price package without unexpected add-on costs and easier redress when things go wrong.
After years of travellers using the internet to compile their own itineraries, travel analysts say a trend of buying a ready-made package that began last year has accelerated this summer, the busiest for travel 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, says. "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 fixed upfront costs and value for money are appealing, says 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."
Britons on average spend about $450 per capita on these getaways, Euromonitor's figures show, as the package holiday provider negotiates deals with hotels, transport companies and other players to drive down costs.
But even packages will get more expensive, the market research company forecasts. It predicts prices will grow at a compound annual growth rate (CAGR) of 3.5% between 2024 and 2029, faster than before the pandemic when they rose at a pace of about 1.3% from 2014-2019.
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Lisa JuliaI think there's still a pizza place in Calas de Mallorca (Mallorca's icon of English 3* all-in cheapness). They used to just toss a frozen pizza in the oven and charge 8.50€, but it's probably double that nowadays. Or maybe they're gone by now. I don't know. I haven't been there in many years. But I've heard it's still pretty much exclusively English. There was a burger king at one time - one of the best restaurants in town (and no doubt part of the attraction), but that may be gone too. The place is a ghost town from Oct to May. Hard to keep a burger king running in an all-in resort just from june-september. But if the food in the hotel is crap .. (?)
Firstly … like Zoltan said ‘they never went away’. Secondly - that’s Blimin brilliant … how to wind up locals, and drain any profit from tourism out of local hands (bars, restaurants and shops) and straight into the laps of fat cat mega hotel CEO’s. If you’ve been to the small beaches where the all inclusive monster hotels are plonked, you’ll notice wall to wall sun beds, no cafes, bars, restaurants, shops … or any local life. In fact, nothing for Mallorcans. Just wall to wall wrist band wearing tourists, high fences and big locked gates. Basically a big fat message - no people who actual live on the island allowed!!!! That’s going to help the anti tourism feeling - I don’t think. Nice - way to upset locals even more guys!!!!
How can they make a return when they never went away!
Club Mediterranean had it right. Upmarket all-inclusive with quality food and drink. Everything else, all-inclusive, is a let down with watery cocktails and pork scratchings. All-inclusives attract the type of holiday maker that Mallorca is declaring it doesn't want any more so where's the sense in this report?
There's all inclusive (like the Caribbean) and there is Mallorca 3/4 star all inclusive that makes food at a Premier Inn seem like Gordon Ramsay personally made it. If people want that 💩, then they deserve the heart attack coming their way.