Industry professionals are almost equally split over whether only the wealthy will be able to afford holidays in the future, as rates on travel services are expected to rise between 1% and 20%.
This was highlighted in the WTM Industry Report research, which was revealed at World Travel Market (WTM) London – held from November 1-3 this week – following a survey of about 1 000 travel professionals from around globe.
Respondents were asked about the impact of the widely anticipated price increases as a result of the pandemic on the overall market. Just over half (51%) were concerned that travel would become the preserve of the rich, with 49% disagreeing.
The report also asked about the scale of the increases, with the nett result confirming that prices were set to rise in 2022. More than one-in-three (35%) of the sample said prices were likely to go up by between 1% and 20% compared with the current year.
However, intense cost pressures and the need to recover revenues lost during the pandemic, mean that more than one-in-ten (12%) are expecting to put up prices by more than 20%.
On the other hand, some are anticipating prices to drop, with 15% predicting a modest drop of between 1% and 20%, while 9% said their company’s prices would fall significantly, by more than 20%.
Around one-fifth (22%) expect prices to be the same.
Simon Press, WTM London, Exhibition Director, said: “In the UK, the total cost of overseas travel for summer was skewed by having to pay for testing, while the demand for staycations led to supply shortages and price hikes. These specific pressures may or may not still be applicable for next year, but the results from the industry are unequivocal – prices will rise in 2022.”
He said many sectors in travel were moving their consumer messaging towards ‘value’ rather than ‘cost’. “The challenge for the industry is to ensure that they can provide a product and experience that justify the price increases to the traveller, and retain their margins but without pricing themselves out of the market.”
