Travelers not put off by rising airline ticket, package holiday costs

Plane flying at high altitude (photo is illustrative).
Plane flying at high altitude (photo is illustrative). Source: Siim LõvI /ERR

Travel agencies forecast a rise in the number of tourists this year despite rising prices. Demand has quickly bounced back after the coronavirus pandemic.

Both demand and higher fuel costs are behind the increases, experts believe.

Travel agency Estravel told Monday's "Aktuaalne kaamera" the number of passengers is on course to rise this year despite hiked prices.

"It is somewhere in the region of 25 percent for package holidays and somewhere in the region of 20-30 percent for airline tickets, maybe even higher. A lot depends on where you buy and how far in advance. It's the long-haul fares that have gone up more, and the fares for those flights that are bought relatively little in advance," said Estravel Group's Mauir Saarend.

In April, the average price of a package tour rose from €660 to €830, said Saarend.

Travel agent Tez Tour, which organizes package holidays, has also seen prices creep north. All of the company's tour options have increased — tickets, accommodation, and transport.

"The economic situation at the moment is such that everything is more expensive. Inflation is high and prices are going up for both fuel and electricity, so everything is going up," said Jelena Gavronski, sales and marketing manager of Tez Tour.

Aviation expert Sven Kukemelk said plane tickets in the U.S. have increased by 25 percent and in Europe by 35 percent. Jet fuel, labor and CO2 costs have also all risen.

Another factor is that several airlines stopped operating in recent years, while demand rose to record levels.

"The other thing is for airlines, if we look at our own domestic market, Finnair has increased the price of its flights quite significantly, particularly to Asia, because flights are two or three hours longer because of the closure of Russian and Ukrainian airspace," said Kukemelk.


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Editor: Barbara Oja, Helen Wright

Source: Aktuaalne kaamera

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