According to fresh data from Eurostat, the price of package tours in European Union countries was, on average, 6.6 percent higher in July of this year compared to the previous year.

In Estonia, however, the price increase over the past year was several times higher than the average, reaching nearly 15 percent. Only Cyprus, Italy and France saw even greater price hikes for package tours over the same period.

Meanwhile, Finland was one of three countries where package tour prices actually dropped by nearly 3 percent over the year. Malta and Denmark also saw slight declines in prices.

Estravel's marketing director, Kaire Saadi, told ERR that demand always affects prices – when demand is high, prices tend to rise. The destination also plays a role, with certain locations seeing more traffic at any given time.

"If new destinations emerge, such as Albania, where the price level is significantly cheaper compared to, say, Spain or Portugal, this will also impact the average," she explained.

According to Saadi, package tour prices at Estravel are, on average, 5 percent higher compared to last year, though this varies by country. Trips to Turkey have increased by 10 percent, Greek packages by 5 percent, while Montenegro packages have actually dropped by 7 percent.

Regarding the fact that package tours in Finland have decreased by an average of 3 percent, Saadi said that prices are heavily influenced by the destination and demand in other markets. If a popular destination attracts a large number of tourists from countries like Germany or the U.K., hotel owners can raise prices there.

However, Saadi believes that the period of rapid price growth has passed. "If we look at the price increases in airline tickets or hotels, they were very steep after Covid. This makes sense, as it took considerable resources to restart operations and train staff after the pause. But by mid-last year, we were already seeing signs of stabilization in airline prices," she said.

Saadi added that surprisingly good deals on airline tickets could still be found at the last minute this summer.

"I would say that the period of significant price hikes is over," the sales director noted.

This summer, Turkey was the top destination for Estonian travelers, followed by Greece and Montenegro. The top three destinations were the same last summer as well. The average price of a package tour purchased from Estravel last year was €846, while this year it was €892 per person.

"Our current economic situation may also be influencing prices. We've noticed that while people were more willing to book higher-end hotels in previous years, during uncertain economic times, they still want to travel but opt for four-star hotels instead of five-star ones," said Saadi.

Turkey's popularity stems from the fact that it has offered a good price-quality ratio for years, according to her. The rise in Montenegro's popularity is due to travelers who have already visited Turkey, Greece, Bulgaria or Egypt and are now seeking new places to explore. While Croatia has been popular for more than a decade, Montenegro is now emerging as an alternative.

Albania is also on the rise, but Saadi noted that while both Albania and Montenegro offer beautiful nature and interesting experiences, their infrastructure, including hotel infrastructure, is not yet fully developed. In her view, Albania resembles Estonia in the early 1990s, where you need to know where to go and where to stay. However, the price level there is very affordable.

Saadi also pointed out that while package tours were highly popular during the Covid period, as people sought safety and convenience, the desire for more adventurous travel has increased.

"We've seen a significant rise in the number of people who either let travel agencies put together a custom package or do it themselves. They don't necessarily have to fly on a charter flight anymore but come to us for help finding unique destinations, booking tickets, accommodations, transfers and car rentals," she said.

Eurostat defines package tours in its statistics as holiday packages that include travel, meals, accommodation, guides and more. This also includes half- or single-day excursions.

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