Right now it seems like prices everywhere are going up from the cost of groceries at your local supermarket, to international travel.
We’ve already heard about the extraordinary rise of air prices – with business class seats selling for an eye-watering $20,000.
Now hotels rooms in Europe are soaring – by up to 30%, according to Goldman Travel. The effect is that a hotel that once cost 500 euros a night is now 1500 to 2000 euros per night.
Goldman Travel’s joint managing director, David Goldman told The Australian newspaper European hotels are currently at over 90 per cent capacity and that room rate prices have risen 25 to 30 per cent across the board.
Flight Centre’s media spokesman, Haydn Long says demand and a lack of capacity is playing a part in high prices.
“Demand has come back really strongly since travel restrictions were lifted but airlines have not yet returned international capacity to anything like what it was pre-COVID. Hence there is a shortage of seats, particularly in the premium cabins.”
Demand is so high that travellers have started queuing outside their shops to secure the best travel deal.
Mr Long expects prices to come down as capacity returns.
“The good news is that capacity is gradually returning and that will help alleviate the seat shortage, which should in turn lead to cheaper international fares as this year progresses.
“One of the reasons capacity is lagging is that airlines shifted elsewhere because of the heavy restrictions that remained in place in Australia while other countries reopened.”
He advises travellers to lock in a deal as soon as possible to ensure they can get to their chosen destination and says: “While fares are above the record lows we were seeing pre-covid, there are still some reasonable deals. It’s just a little harder to find them and you might need to be a little more flexible.”
Expedia Travel Expert, Lisa Perkovic also has advice for travellers wanting to save money and shares her six tips to do so
- Know when to book – According to Expedia, the best day to book an international flight is Sunday when travellers can save almost 20 per cent compared with Fridays.
- Consider travelling outside of peak periods – As soon as the cooler months begin travellers to Europe and the US can save money. October is the best month to travel compared with December when they can save 20 per cent.
- Protect yourself from on-the-ground surprises – The cost of living is going up around the world so travellers should do their research into everyday items such as meals and local transport to avoid blowing their budget. For example, a coffee could cost $7AUD in Hawaii compared with $2AUD in Spain. It’s best to check out the hotel menu before you arrive so you can gauge how much things cost.
- Down-star accommodation to save – Travellers can save up to 40 per cent on average simply by booking a four-star property over a five-star. Downgrading from a four-star to a three-star can save you a further 25 per cent.
- Get travel fit again – Check that your passport is up to date and has the minimum duration left on it before renewing. If you pay for a passport with ten year validity it will cost $308 for adults, $193 for a replacement passport (which is a passport with less than two years remaining). An emergency passport will cost $193 overseas and priority processing will add a further $225, plus if you need to get a new passport overseas there is an additional overseas surcharge of $138. In other words, if you renew your passport in Australia it will cost $308, but if you do it overseas it will cost you $556 according to current pricing on the Australian Passport Office website. It’s also important to have some local currency on hand in case of an emergency and shop around for the best exchange rate.
- Take advantage of double-dipping – Travel websites often have loyalty programs. ExpediaRewards’ program allows travellers to access special deals and build up points that can be used on future bookings which will help their money go further.
