One economist is warning Americans considering traveling to Europe that they should expect “incredibly high” prices.
Hopper Lead Economist Hayley Berg said in an interview, “Travelers who haven’t booked their summer trips to Europe aren’t going to want to hear this… If you’re booking a European vacation now, you are definitely paying a premium for your procrastination.”
Hooper noted that with Europe listed as a top “bucket list” destination, that will be hard news for the many travelers who are looking to travel internationally this summer. This summer the average plane ticket to Europe will cost $1,196, an increase of approximately $500 from 2021 and the most expensive since 2018.
Berg said, “Americans are biting the blood on those airfares. We’re seeing incredible demand throughout the end of the summer.”
The sky-high prices are pricing many travelers out of popular destinations like Rome, London, and Paris, leaving their best option to go off the beaten path if they wish to live the European travel dream this summer. Berg’s favorite pick this summer is Portugal, an increasingly popular destination for tourists, with flights originating in several different cities to one of the most popular cities, Porto, costing less than $1,000 she said.
Berg added that once in Portugal, travel within the country is cheaper than other locations. She predicted it would remain like that for a year and a half, after which it may become more expensive like other trendy destinations such as Croatia or Iceland, where budget carriers could only suppress prices for so long. Already tourism to Portugal is on a years-long growth trend.
She said, “What we’re seeing to Portugal, in particular, is many low cost carriers are now flying in and out of Lisbon and Porto. That’s keeping prices down, even as the popularity balloons.”
Berg added that if Americans do not want to substitute trip to Portugal for their preferred destination, but they still want to travel on a discount, they should consider travelling in the fall and making their reservations three or our months in advance to get the lowest prices possible.
She said, “That’s why now is the best time to be booking fall trips. September and October prices are super low. They will start rising.”
Although corporate travel has not yet fully recovered from the depths of the pandemic, the travel sector remains one of the stronger elements of the economy. Berg noted Hopper has noticed an increasing trend for travelers to plan trips quicker, spend more while on them, and take one additional trip per year, all while bargain-hunting constantly.
She said, “We do see price sensitivity, deal-seeking behavior, but it doesn’t seem to be slowing down demand. Instead, it seems to be accelerating the ability to go on vacation as these travelers try to tack more days on to trips or slip in an extra domestic trip in the year.”
