Irish people will dip into their savings this year to spend an average of €2,800 each on holidays as travel costs soar, says a new survey.
Sunseekers face higher costs this year as airline capacity remains tight following from two years of Covid-19 curbs, driving up airfares.
A new survey of spending plans says Irish people expect their summer holiday to cost them €2,800 on average this year.
Travel enthusiasm
The high cost will prompt about half of them to dip into their savings, says the study published on Tuesday by payments services business Wise.
Irish holidaymakers will spend €771 on travel, €501 on food and drink, €368 on day trips and €400 on shopping, according to the company.
In fact, it maintains that an “overwhelming” 74 per cent of us expect holidays to cost more this year.
However, high costs have not dimmed enthusiasm for travel, with one-third of the 1,000 people who took part in the surveys saying they will take at least one holiday.
About 40 per cent plan to take at least two holidays while 10 per cent will travel at least four times this year.
Irish people will spend more time researching better deals, or are more likely to travel to a cheaper destination than previously.
According to Wise, 17 per cent will save by going away for less time while one in 10 will holiday in Ireland.
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European beach holidays top most people’s lists, meaning traditionally favoured destinations in Spain, Portugal, Greece and other locations around the Mediterranean. North America is next with the Caribbean ranked third.
Sana Rahman, global director of communications at Wise said Irish people remained keen to travel.
“However, with costs going up, they’re also being savvy about it — spending time researching good deals and planning their travel budgets,” she added.
Airline capacity
While Ryanair continues to add aircraft and seats beyond its pre-pandemic totals, and Aer Lingus equalled 2019 capacity late last year, space on most European airlines will still fall below pre-Covid levels in 2023.
Meanwhile, a strong dollar is likely to prompt more US holidaymakers to cross the Atlantic and the reopening of China will result in more tourists from Asia.
Higher fuel and labour costs are likely to combine with those factors to drive up airfares this year, as demand for travel is expected to remain strong across Europe.
Energy costs and more general inflation have also hit the region with a knock-on effect on other travel expenses.
