The Cost of Travel: A year-on-year increase

With the cost of all-inclusive package holidays to popular destinations sky rocketing, our CEO, Julia Lo Bue-Said OBE, says that the price rises are down to a number of factors.

"British holidaymakers are experiencing year-on-year price increases that reflect the inflationary pressures affecting virtually every sector of the UK economy. These increases simply keep pace with the broader cost of doing business and reflect the reality of higher operational costs, from increased energy bills affecting hotels to elevated food costs impacting restaurants and rising wages across the hospitality sector.

We've seen average selling prices increase this year as holidaymakers, particularly those choosing all-inclusive holidays, trade up to secure better value for their spending, as well as upgrading to more premium all-inclusive packages that include additional amenities.

This year more than ever, we are also seeing Brits choose long-haul all-inclusive holidays over short-haul options due to the great value they offer. Travellers to destinations like Dubai are increasingly opting for premium cabin seats when flying, which naturally increases their overall spend, alongside the inherent cost difference of travelling to longer-haul destinations versus European locations.

Despite the continued cost-of-living crisis, the desire to travel has shown no sign of slowing down, and the luxury travel market is one of the fastest-growing segments of the travel industry. As people look to make the most of the holidays they take, there is an increase in demand for luxury breaks and more personalised service, which again increases prices.

This year marks the 75th anniversary of the all-inclusive holiday, and today they represent over 40% of sales through our travel agency network, demonstrating that appetite for this type of holiday continues with strong consumer demand.”

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