Holidays to cost more next year

Wait until the last minute to book your summer 2010 holiday in the hope of picking up a bargain and you could be disappointed as the travel industry is planning to shed capacity rather than cut prices.

Thousands of holidaymakers hoping to bag a late deal this summer missed out, according to industry chiefs, as operators had anticipated the fall in demand and cut their supply.

Similarly, tour operators are planning to cut capacity and push up prices for summer 2010.

Reports suggest there were 30 per cent fewer holidays available in the £200 to £399 price range this summer, though sales of holidays priced £800 to £1,799 were up six per cent.

If the sale of package holidays continues to be sluggish, some smaller tour operators will go bust, according to latest reports, which will mean even fewer holidays on sale next year.

Larger tour operators are expected to push up holiday prices to make up for a shortfall in sales, though whether price increases can be sustained remains to be seen.

Holiday sales were 11 per cent down this year and leisure travel is not expected to pick up next year either as the recession continues to take a chunk out of holidaymakers' budgets.

The screening of the FIFA World Cup next summer is also likely to force die-hard football fans to cancel their annual holiday so they can remain glued to the TV ? or at least delay any travel until England gets knocked out.

Digg    Reddit    Facebook    Tweet This