UK package holiday prices set to rise

According to a new travel trends report from TTG, prices for package holidays are likely to rise next year. Travel publication TTG says the average price for summer holidays rose by £26 to £564 this year, and expects a further rise in 2010.

TTG released the findings of the report at the ATBA convention in Barcelona this week. According to the report, travel industry observers believe that the industry is unlikely to be able to sustain its current size, and prices look set to go up even as demand slackens.

TTG’s report says the summer leisure market for 2009 was down 11%, with a further drop expected in the following year, as football fans stay glued to their television sets following England’s progress in the World Cup.

The report warns that customers seem to be bargaining harder than ever and delaying bookings more than ever, to get better value for money.

It went on to say that airlines operating from UK airports have reduced seats by a margin of over 16 million when compared with capacity rates for 2004. However, it noted that low-cost airlines like easyJet and Ryanair have in fact increased capacity by 52% during the same period.

TTG’s report has said that although travellers were waiting longer than usual to book holidays, expected late price wars did not materialise, due to tighter capacity. The report has warned that several potential bumps were lying ahead for the travel industry, and weaker firms would have to learn to adapt if they wanted to survive.