Holiday prices to soar?

Well, the first bit of news to arrive in my inbox this morning wasn’t, I’m afraid, good news. According to travel agent Advantage, holiday prices are set to rise by 10% in 2009.

Pointing at the worsening economy (are we recession bound?) and the increase in fuel costs, Advantage estimate an increase of £50 per person on a £500 holiday. It’s also suggested that travel agents are going to need to work even harder to attract bookings from a general public having to shell out money on the rising costs of food, fuel and (gulp) mortgages.

While it’s true that the economy here in the UK is currently pointing at the toilet, I was always lead to believe that there’s two businesses that are relatively recession proof – undertaking and holiday making as the more stressful life gets the greater the need to get away. Right? I know I’m desperate to take a holiday right now.

Put 2009 aside for a moment though as the rising cost of oil has also meant increased costs in 2008. British Airways have already had to up their fuel surcharges for the premium seats having increased the charge on all seats earlier in the month. And that black sticky stuff still shows no signs of getting cheaper of leveling out.

At a time when I’m paying £1.19 for a litre of unleaded (and every time I think about it I shudder) I know I’m not planning on a large holiday spend and counting every penny for it. My next holiday is going to be pretty close – I’m swinging over to France – and not incur such a cost as, say, a family of four heading off to Florida.

I think if the holiday market truly does suffer it will be a sign of how bad the price of oil has become. Even a holiday in the UK is facing a hike in cost thanks to the jump in prices at the pumps. So what’s the answer? If you ask me it’s to pre-book. I’m not about to go out and buy Euros now in case next year I’ll get 20 cents less for my pound but I will pre-book my tickets and parking as soon as possible.

I wouldn’t panic yet though. Like so many estimates, this isn’t a fact and has a lot of variables. I know petrol at my local garage dropped to £1.16.9 on Sunday and while it’s not a massive drop it is a good sign. While a recession is highly tipped it’s not guaranteed and this whole thing could very soon look like so much Millennium Bug anti-virus software. Fingers crossed.