Since the fireworks fired above Britain’s Capital on January 1st there has been much change. An increased amount of terrorism, emerging travel destinations popping up as a result of the downfall of Turkey and others, and of course Brexit. The question we all want to know though is what do 2017 holiday prices look like!

2017 Air Fare Changes

The first part of this year saw demand for international air travel increase, stimulated by lower fares and ultimately driving airlines to increase supply. As we head towards the end of the year demand has reduced but that supply remains, meaning there is now an over availability. This is good for us as it means we’re likely to see a continuation of well-priced flights. Additionally, lower fuel costs over the last few months have helped keep prices low.

Within Europe, according to a study by ADVITO, we should see very little change in leisure flight prices, in fact, they are predicted to drop by 1%. Long haul flights will remain pretty unchanged as well, rising by no more than 1%.  This is a similar pattern in business class.

From my own experience I see more and more low-cost leisure focused airlines reaching out to the business travel community – filling gaps in seats with non-leisure business. Whilst there is no official comparison at this stage it is always worthwhile bearing this in mind when looking at early morning or late afternoon flights – where international comuters may be using the service.

2017 Hotel Prices

Again strong demand at the start of 2016 saw a healthy hotel market, but Brexit has put in the way significant uncertainty for next year. Low-cost hotels are also becoming more and more predominant in the market – more frequently used by business travellers now as company policy is downgraded to keep up business travel but keep costs lower. For holiday makers and explorers, it does mean prices may be a little heightened – with Advito expecting a 0-2% change – so nothing too dramatic!

Be careful within the UK – especially London . Hotel demand in the city is higher than supply and availability so central London hotels are pushing up prices – even the budget ones. Additionally, BREXIT has suddenly made the UK a very attractive destination; a weak pound coupled with uncertainty as to how long foreign travellers will be able to come here without a Visa!

flights

Forecast Hotel Increases in Europe (Advito)

So, 2017 holiday prices , will they go up?

The answer is yes! But, realistically airline and hotel price changes won’t be the thing that does it! The weakness of the pound against all other global currencies is the significant cost factor here – and the main reasons we’re getting so many international visitors. Against the Euro, you’ll get around 0.2 less than you would have done last year. Across an average seven-night holiday this could represent a £100 difference per person. If booking through a Tour Operator or Travel Agent – this difference could be their total margin. It is without the doubt that this currency change, whilst it may have been absorbed up to now, will certainly be passed on during 2017!

So, it’s more important than ever to book savvy!