Holiday costs might shoot up this summer.
Prices for international travel are set to rise this year due to pent-up demand and fewer aeroplanes in service, a travel boss says. Booking.com’s chief executive Glenn Fogel told that “holiday prices are already going up”.
Mr Fogel said that despite huge demand, uncertainty makes it hard for airlines to plan bringing more planes back into service. “There’s so much pent-up demand,” said Mr Fogel. “Everybody wants to go travelling, but we all want to do it safely.”
Many airlines have significantly reduced the number of flights they operate due to travel restrictions. However, Tui’s UK boss Andrew Flintham said it would be “a long time” before holiday firms try to boost profits.
John Grant, an aviation analyst with global travel data provider OAG said this will have a knock-on impact on air fares as travel restrictions are eased. “That will, in the short term, create a rush of pent-up demand and revenge spending, in turn, the airline algorithms will detect an uptick in demand and move prices up accordingly” he said.
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