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The soaring costs stretching holidaymakers budgets

From getting to the airport to that first helping of tapas, the cost British holidaymakers abroad this summer are higher than they were before the pandemic.

The average cost of a week’s rental car has more than doubled, according to data compiled for BBC News by travel comparison site Ice Travel Group.

According to the data, average prices for accommodation, airport parking and insurance are also higher than in 2019.

The group’s study compared the average prices for their top 10 travel destinations in June 2019 to their top 10 travel destinations in June 2022.

Hiring a car for a week, for example, has gone from around £220 to nearly £500, although these costs vary by destination – Italy and Ireland have had some of the sharpest increases.

The data also shows that all-inclusive holiday packages were, on average, 17% more expensive, rising to £1000 for a family of four.

Bed and breakfast accommodation also rose from £608 to £755 on average. However, the prices for these offers varied by destination, with the largest increases for both holiday types being seen in Egypt, Greece, the US, the United Arab Emirates and Italy.

Holiday cost inflation is something that Mini Travelers blogger Karen Beddow is all too aware of.

On a recent camping trip to the Netherlands with her three daughters over Easter, even the expense of cooking her own camp stove dinner was “eye watering,” she says.

“The cost of eating out at the restaurant or buying groceries at the supermarket was so much more than we expected,” she says. “When you cook for yourself you expect it to be cheap, but it wasn’t.”

However, Ms Beddow has some tips. “I always make sure to book my airport parking or rental car as soon as I book my trip. Because these are things that people forget until the last minute, and they will only go up in price,” she explains.

“And I always take a giant picnic lunch on a flight because airport food is so expensive.”

Additionally, the pound remains weak against several currencies, meaning British travelers are getting less for their money in many of their favorite destinations.

Despite all the increases, Chris Webber, head of vacations at Ice Travel Group, says getting away remains a “priority expense” for many after the pandemic lockdowns. “[This] Rising demand has a direct impact on rising prices, which we can see in everything from airfare to car rentals,” he explains.

  • Spain: 10.2%
  • Italy: 8.0%
  • Greece: 12.1%
  • France: 5.8%
  • Turkey: 78.6%

Post-pandemic higher energy costs and staffing shortages are putting pressure on tourism businesses worldwide.

Mr. Webber adds that travel companies just aren’t getting back up to speed with staff and resources, adding, “What we’re hearing from the agents and tour operators … is that the prices of travel are also expected to increase in 2023.”

Delays, cancellations and other complications resulting from the pandemic have increased the cost of single trip travel insurance by an average of 40%, from £35 to just over £50. Multi-trip policies rose 15%, according to Ice Lolly’s insurance partner, CYTI.

Ashley Price, who runs Corner Bar in the Spanish resort of Benidorm, feels almost everything is becoming more expensive for his business. The bar prides itself on offering a hearty full English breakfast for €3.50 – but he says it’s getting harder.

“Four months ago we paid €22 for a box of eggs, now it’s €51. The cooking oil has tripled, as has the mayonnaise.”

Corner Bar has switched from British to Irish produce to keep its spending in check, “some Spanish companies are trying to replicate British produce,” he adds.

But filling vacancies is his biggest concern. “Benidorm alone is estimated to lack 4,000 vacancies that would normally be filled by young Brits doing summer jobs,” he explains. “We now have to close at 6pm every day because we don’t have enough staff to stay open.”

Taken together, hidden extra costs, if left unaddressed, will sting – especially alongside ongoing disruptions at airports and a pressure on the cost of living at home. But back in the UK, Karen, the travel blogger, says there are some things families could do, like doing some extra research on prices for all those extras like trips and treats before leaving.

It’s hard to rein in holiday spending at the best of times, and with so many people traveling abroad for the first time in years, there are even more reasons to spend the money this summer.

But with holiday costs rising at every turn, the problems will really come home in the fall and winter.

With every household facing rising food and fuel bills, this isn’t the year for people to be able to pay off summer vacations over the winter months.

Finding a bargain is next to impossible this year, so balancing between having a great holiday and making sure you can afford it has become more difficult, but more important than ever.

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