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Vacation in luxury, medium or economic structures? It does not matter what you plan to do this year, as prices will increase for all categories.
The accommodation structures envisage a 10% increase, to cover the increased costs of energy, food, oil and revised staff salaries.
While even those who will love the economical option can not escape the increased cost of oil and food, once they get out the door. Tour operators judge that, despite the prices, summer vacation plans are unlikely to slip out of the family calendar, which will fit everything on a budget, from overnight stays to weekend trips.
Even before the summer season started well, “traditional” price invoices in restaurants and hotels, mainly in the South, began to circulate on social networks, accompanied by dissatisfaction. Despite the unanimous anger, the annual argument for what is happening in the country is that of price-supply-pricing.
As long as there are people willing to pay at such price levels, there will also be supply. These are generally occasional cases, with prices at extreme levels, relative to the overall average.
Cheaper options are not lacking either. But the year 2022 is predicted to be “saltier” in prices, for all those who will want to relax during the summer, as the increase in prices has come in several segments simultaneously, making it almost impossible to fully depreciate them, without giving effect to the final cost.
Hotels’s costs increase by 30% from energy, food, wages, oil
Accommodation structures were the first to sound the alarm that their operating costs have increased, due to some developments in the domestic market, but also the external one, with a chain effect. First, there was the government’s move to bring to the unregulated market 7500 businesses connected in 20,10,6 kv voltage, which also includes accommodation structures located throughout the country. These businesses, which until yesterday bought energy at 11-12 lek / kwh are now forced to buy it at 18.8 lek kwh, if they are at a voltage of 20 kv and 19.7 lek, if they are at a voltage of 10.6 kv.
“Energy is what has affected us the most, as it has doubled. We are paying one kilowatt with 18.8 lek. We need to understand that the cost of energy occupies a very important place in our costs as accommodation structures.
We are not in full booking all night, but the equipment is at work and this causes us huge losses. As for food, I notice that they have grown, but it does not affect us significantly. If we do the price increase ratio on some elements, energy carries the most weight.
This year we sold at a higher price than last year because costs have increased. “For people, this is clear, as they affect it on a daily basis,” Blerim Norja, from “Royal G” for “Monitor” stated a while ago. The increase in the price of energy has forced most of them to seek alternative solutions. Not a few have installed photovoltaic plants, up to 500 kwp for self-consumption, to somewhat amortize costs, but claim that the monthly balance scheme significantly penalizes them.
According to them, for tourism entities that have installed plants, the payback time is significantly extended, as they are lost from the monthly balance, producing even in winter, but the demand for their energy in this period falls, while the annual balance will was the right scheme. Nevertheless, with rising prices in the markets, they estimate that the installation of plants is a proper cost mitigation, which again results in profitability.
“We are connected to a voltage of 20 kilovolts and currently we are supplied with the price of 18.8 lekë from 11 lekë before. We have tried to minimize the impact of energy by installing photovoltaic plants, one with a capacity of 350 kwp and the other, 500 kwp. These cover 70% of the need, when the situation is favorable. The rest is covered by the prices that come to us from the market, which have increased “, – claims Ariol Haxhillari from” FAFA Group “.
In addition to energy, accommodation structures report rising food prices, something noticeable in the market, but a good portion say the weight of this increase in total cost remains small and can be amortized. The price of oil has also increased, from which even these structures can not escape for their needs.
The difficulty in finding service staff previously forced accommodation structures, bars and restaurants to increase salaries. Some of them claim to have hired foreign workers, while to prevent the departure of existing staff, they have been forced to increase salaries by up to 30%.
The sharp rise in prices in some segments has meant that at least for hotels that have sold packages with guarantees, at best there is no profit. In the worst case they can even be at a loss.
New packages are being sold at 10-20% higher price
Tour operators in the area of Durrës, Vlora and Saranda report that the new bookings will be with an increase that can fluctuate on average 10-20%. Ariol Haxhillari, from “FAFA Group”, reports that in general, for Durrës, it is not expected to increase by more than 10% for accommodation structures.
“The growth can not be high, as the structures in the Durrës area are in danger of leaving the market. “In a difficult year like this with increased prices, you have to try to be competitive,” said Haxhillari.
The same statement is made by the operators in the area of Vlora and Saranda, where according to them the increase can vary from structure to structure. The overall average will be 10%, while for new structures with high added costs, the increase can go up to 20%.
The accommodation structures, in addition to the contracts they have sold with guarantees, from which they can not play from the price given earlier, are selling at increased prices. Reservations, according to them, remain limited, at least by locals, who choose last minute reservations, while reservations from European countries remain at satisfactory levels.
Agency prices and reductions remain at lower levels than in previous years (not during the COVID period). More decline seems to have the Polish market, which due to the war situation in Ukraine is in a state of stagnation, as citizens are still insecure.
Packages for 7 days in “all inclusive” (all included) for June vary between 450-700 euros per person, which although the offers are reduced, remain higher than the average of previous years when Albania became an attractive destination from the prices of lira. In June, Polish packages ranged between 350-600 euros / person, for 7 days.
Affected families with “economic” holidays, weekend tourism can be easily reduced
Regardless of the prices at which you can insure the hotel, even if it has not undergone any increase, the cost of family vacations this year is expected to be higher.
One of the main segments that has marked a significant increase is the price of fuel. Oil and gasoline, which reached record levels of 260 ALL / liter, and now fluctuate between 220-235 ALL / liter, according to the decision of the Transparency Board set up several months ago, have a significant share of spending on the total cost of holidays.
The group of those who choose even more economical holidays, where instead of a standard hotel they will choose a structure with a cooking environment, will still have higher costs than a year ago, due to the expensive food prices in the units. of retail and wholesale trade.
However, for tour operators the holidays will not be missing.
According to them, this means that families who traditionally plan a vacation every year, will do it this year as well, despite the increased cost. Fluctuations can be marked by weekend tourism, where some families can reduce trips during the summer season to different destinations, focusing this budget on long summer vacations.
Another element that can be noticed this summer, according to tour operators, is the shortening of net-stays, reducing 10-day stays per week, or weekly stays to 5-day stays. They expect the price situation this year to reorganize even the favorite holiday destinations for locals who will want to relax here.
Tourist giant “Tui”: No offers with low prices “last minute”
Travel giant Tui said it expects summer season bookings to “almost” reach 2019 levels this year, but warned there would be no “last minute” low-cost deals.
The company said bookings had risen in the past six weeks as people planned summer vacations following the easing of travel restrictions by Covid. The company warned that the impact of Covid and the war in Ukraine on customer behavior remained “difficult to predict”.
Tui’s manager warned of rising prices and limited supply, due to high fuel costs. “Practically, there will be no last minute offers at low prices this summer,” said Fritz Joussen.
Tui’s losses halved to 614.5m euros in the six months to March, as it had a strong recovery in customer demand. As a result, the company told its shareholders it could make a profit by the end of this year. “High demand for travel and very good business performance confirm our forecasts,” said Mr. Joussen.
“2022 will be a good financial year. “Capacity will almost reach 2019 levels, before the start of the corona.”
He added: “After two years of crisis, we expect Tui to be able to secure profits again in the current financial year… This is the basis for new growth.”
Tui told the BBC that Greece was its most popular destination at the moment, followed by the Canary and Balearic Islands, and by Turkey.
In the last three months, 1.9 million customers chose to fly with Tui, an increase of 1.7 million compared to the same period of 2021, when global travel suffered a significant decline due to the pandemic.
The firm said bookings for summer vacations were currently as high as 85% of those for 2019. With travel restrictions reduced by the Covid-19 pandemic, demand for overseas summer vacations is growing. For Tui, holidaymakers in the UK are leading the way back to the beaches.
The tour operator says people are spending more on summer vacations, for example going for longer vacation periods and opting for more extended tour packages.
However, this optimism is not totally without any ambiguity. Tui, like other travel businesses, will observe how the war in Ukraine, inflation and any future travel restrictions will affect consumer behavior. Monitor
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