news from the island
2012 Package Holiday Prices Set To Rise By 5%

Tuesday September 27, 2011

2012 Package Holiday Prices Set To Rise By 5%

Against the backdrop of squeezed disposable incomes in the UK the cost of package holidays in Lanzarote and other destinations looks set to rise next year. As TUI travel, owners of First Choice and Thomson has announced price rises in order to offset the rising costs of aviation fuel and accommodation. Whilst their forward bookings for summer 2012 are currently down by 11%.

The cost of taking a package holiday in Lanzarote with the UK's leading tour operator is set to rise by 5% next year, a figure that is in line with current inflation but ahead of average pay rises in the UK. And as households there struggle to cope with rising household expenses across the board this could result in more families sacrificing their foreign holidays next year.

Retail analysts Mintel recently stated that spending on holidays in both the UK and abroad fell by £33.4 billion during 2010. With four in ten people now reportedly classifying holidays as a luxury not a necessity and increasingly the preserve of better off consumers.

TUI Travels Chief Executive Peter Lang recently announced that the company had taken plenty of late summer bookings and described winter bookings as satisfactory. But also announced that holiday prices would be rising in 2012 in order to counter the rising cost of fuel and accommodation.

On the upside Lang also indicated that TUI would continue their switch away from destinations such as Egypt and Tunisia for the near future - a shift which resulted in greatly increased bookings for winter and spring breaks in the Canaries earlier this year.

Back to News
blog comments powered by Disqus