Prices for trips to Europe begin to drop in the year's final quarter

As of the most recent numbers from leading travel business TravelPerk, prices across Europe have dropped for the first time in 2022.

According to data collected by TravelPerk, airfare, hotel, and train fares throughout the world decreased by 8% in the fourth quarter compared to the third quarter, which includes the busiest months for holidaymakers in July and August.

The greatest price drops, up to 38%, were seen on airfares to and from London during the last two quarters of the year. The trend that began in the summer season across the American market—a decrease in airfare—has quickly spread also to Europe.

According to TravelPerk, airfares fell 7%, hotel rates fell 3%, and train tickets 2% worldwide in the last 3 months of 2022. Only car rental costs went up in the fourth quarter, by 6% over the prior quarter.

Travel costs are 26% more than they were a year ago and 20% higher than they were in the fourth quarter of 2018. Even if the price of flight tickets is 34% more than it was before the Covid-19 pandemic, it is 60% lower than it was in April and May of 2022.

According to the data, the cost of flying inside Europe decreased by 11% from Q3 to Q4, with rates decreasing by 15% in Spain and 12% in the UK, respectively. Rather notable drops were also recorded in France and Germany (9 and 8 percent respectively).

Hotel rates throughout Europe are down 7% from the previous quarter, including a 10% drop in the popular tourist destination of Spain. Edinburgh had a 24.1% decrease, Barcelona an 18.1% decrease, Dublin had a 15.1% decrease, and Munich a 12.1% decrease in hotel prices during this time frame.

JC Taunay Bucalo, chief revenue officer at TravelPerk, explained:

“2022 has seen a huge recovery in travel, particularly business travel, as companies from across the world have finally been able to put Covid behind them. That surge in demand, combined with a variety of other external factors, led to significant inflation this year in the cost of flights, rail, and accommodation.”

He added that so far, the United States has been the only region to experience inflationary recovery, but Europe is quickly catching up as shown by falling airfare and lodging costs around the region. With prices in the United States holding steady after a drop in the previous quarter, this amounts to a significant and much-appreciated cooling down after the summer high.

Demand for business travel is clearly still robust despite the price hikes, but considerable shifts in booking behaviour are further anticipated.

 

source: businesstravelnewseurope.com