The package holiday has been on the rise since the corona crisis.
This phenomenon was already known in the travel industry itself, but now the British data company Euromonitor has listed the data.
Spending on package holidays in Europe, especially popular among Britons and Germans, is expected to reach $117 billion this year, or more than €105 billion.
That is 11 percent more than last year.
Spending on package holidays will reach a new high next year, with a total of 125.9 billion dollars, or more than 112 billion euros, according to Euromonitor.
After years of travelers curating their own trips over the internet, there is now a renewed trend to buy a ready-made package, travel analysts say.
This trend became clearly visible last year and will reach its peak this summer, the busiest travel period since the corona pandemic, reports Reuters news agency.
Due to inflation, consumers are looking for the certainty of the price of a package holiday.
“In times of peak inflation, such as the past two years, packages allow consumers to budget more efficiently,” says an economist from Euromonitor.
“The package holiday provider negotiates with hotels, transport companies and other parties to reduce costs.” The cancellation of flights and strikes at airlines also cause uncertainty, especially for customers who have put together their own trip.
A package holiday avoids unexpected extra costs and offers easy compensation when something goes wrong.
Knowing in advance where you stand and ‘value for money’ are important arguments for buying a package holiday.
According to Euromonitor, the fact that TUI Group was able to report better than expected third-quarter results last week is partly due to the popularity of package holidays.
Package holidays tend to appeal to low- to moderate-income holidaymakers looking for sun and sea with all-inclusive options and family-friendly activities such as beach clubs, says Euromonitor.
Britons spend an average of 450 dollars (or 404 euros) per person on a package holiday, according to figures from the data company.
In addition to families and older travelers, younger consumers are also embracing package holidays.
According to the ABTA, 56 percent of customers between the ages of 25 and 34 opt for a package holiday, where they can put together their flight and accommodation.
To cater to the tastes of younger customers, companies like TUI are offering more flexibility in their packages.
Despite their popularity, package holidays are also becoming more expensive, Euromonitor predicts.
A package holiday is expected to become 3.5 percent more expensive per year (between 2024 and 2029).
This is more than before the pandemic, when prices rose by 1.3 percent (between 2014 and 2019). (Photo Shutterstock).
