From mid 2022, across the whole of Europe hotel rates have been on the rise, soaring to a record high. The number of people travelling in recent months has been even greater than the amount choosing to holiday pre-pandemic.
With more and more people travelling since the public health emergency has simmered down, hotels have taken advantage and decided to make the most of it by boosting their prices to make up numbers lost during the years of lockdown and restrictions around the world.
According to studies, the hotel rates now exceed what they were before 2020. As expected, this is only adding to travellers’ hardship when the cost of flights within Europe have also inflated due to higher demand, rising fuel costs and labour shortages. Things we can see that we are paying extra for in everyday life as well.
With the cost of living on what seems to be a never-ending ascent, some people may be considering at this point whether it would just be more economical to head to the Canary Islands for some winter sun instead of fishing out for those heating bills. Yes, the travel costs are high now but with summer not so far around the corner who knows how much higher things could soon skyrocket.
However, even with the cost of getaways at these enormous rates it would seem that many people are still very willing to pay the prices after having missed their time away over the past years. As evidenced by the demand in hotels.
On the contrary, it is safe to say that not every traveller will be happy to fork out a small fortune on a simple holiday. Those who would like to save some in travel and accommodation should consider places such as Germany and Austria where prices have not risen quite as much as in other countries such as Ireland where the highest percentage of increase has been seen throughout the whole of the continent. With Portugal and Spain not far behind.
Travelodge have noted a gap in the market for affordable hotels in Spain and jumped at the opportunity. Soon they will expand to their third hotel in Madrid and are looking at numerous other business and leisure locations across the country to continue their growth.
Europe remains the most popular tourist destination in the world with France, Spain, Italy, Turkey, Germany and the United Kingdom, six of the top ten most visited international tourist destinations sitting within its geographical borders. It is no wonder that there are over 1,000 new hotels being constructed across the continent with companies such as Accor, Hilton and Marriott International among others expanding. Travel activity throughout 2023 is expected to continue to grow post the pandemic crash.
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Although hotels are clearly in high demand, the way to travel overall has changed. People might be more open to crowded hotels now, but it wasn’t so long ago that practically everyone wanted their own space. This has made other forms of accommodation such as Airbnb’s grow in popularity.
Airbnb’s come in all shapes and sizes and with that more prices and more options to get something unique but still within your budget, whatever that may be. Hotels are not the only option anymore, if you shop around you could end up finding somewhere truly lovely and unexpected. You could find a hidden gem whilst only paying your desired premium and having the freedom of staying somewhere away from the rest of the world if that is what you’re looking for.
Whether you’re travelling alone, with a partner or a family of eight – you’ll still be spoilt for choice with an Airbnb type property. You could even do it the Spanish way and find yourself a Casa Rural. These are usually whole villas for rent, where the Spanish spend their summers. Many Spanish people will own a country or beachfront villa where they spend weeks with their families and rent out for other people to enjoy the rest of the time.
This is because lots of the Spanish will live in towns or cities to be near their jobs and their children’s schools. As well as to stay warm in the winter in a cosy apartment rather than having to heat up an entire house. It is not common to have central heating in Spanish homes as it is in the UK, they tend to be made to keep the heat out rather than in.
The world has changed over the last few years and with it, the way people travel. Prices are higher but there are now so many options for how to holiday, it is the perfect time to investigate something new and find out what fits you best. Whether that be a grand hotel in Berlin or a quaint Airbnb in Naples.
To travel, you need time and wealth on your side. Private Client Consultancy is committed to helping you plan for your financial future so that you may continue to experience the pleasures life has to offer. Get in contact with one of our Wealth Managers today to discuss how we can tailor a plan to suit your needs.
Disclaimer: Tax laws, rates, and reliefs are subject to change and may vary depending on individual circumstances and residency status. Any information provided on this website is based on our understanding of current regulations (or the date of when the content was published) and should not be considered personalised financial or tax advice. As tax obligations can differ across regions, countries and evolve over time, we strongly recommend seeking professional advice tailored to your specific situation before making any financial decisions.
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