Published on Wednesday, December 14, 2016
Package holiday prices are likely to rise by at least 10% next year and almost a fifth of operators believe the increase could be as high as 15% to 20%.
Travel deals publisher Travelzoo said an online survey of 15 companies in the last few days revealed that four out of five expected average holiday prices to rise in 2017. The survey included nine tour operators and firms that carry a combined total of more than a million passengers.
Travelzoo said continued uncertainty over Brexit, sterling's slide against other currencies, the rising cost of oil and ongoing geopolitical events would be to blame for prise rises.
Travelzoo UK MD Joel Brandon-Bravo said: "The impact of sterling's fall in particular has not really been felt in holiday pricing to date, however all the signs are pointing in the direction of price hikes for many popular holiday destinations in 2017.
"Until now British travel companies have been absorbing some price increases on costs such as hotel rates set in euros and many have been selling holidays at prices set before the June referendum.
"Businesses cannot do this indefinitely however and we expect pricing for next year's holidays to increase by at least 10%. For almost one fifth (17%) of those we spoke to the increase could be as high as 15-20%."
However, Travelzoo pointed out that the current economic woes have not prevented Brits from travelling. Referring to ABTA's 2016 Holiday Habits Report, it said this year the largest proportion of Britons (86%) has travelled since 2011.
Brandon-Bravo added: "For those looking to minimise the impact of these imminent price hikes we would advise consumers to consider the following: book early for peak holiday periods such as summer 2017, consider destinations that have more favourable exchange rates and be open-minded about which country you visit.
"If destinations such as Sharm el-Sheikh and Tunisia remain closed to the UK this will continue to put pressure on pricing to ultra-popular Western Mediterranean destinations. The world is a large place - perhaps 2017 is the year to break out of predictable holiday destinations and try somewhere new."
Travelzoo predicts 'good value for money destinations' South Africa, Slovenia, Montenegro, Oman and Sri Lanka are likely to see a rise in UK tourists in 2017.
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The recent insolvency of Low Cost Travel Group, one of the large players in the travel industry had a big impact on the travelers, hotels and all related players from both wholesale & retail arms. There were about 27,000 people on a holiday who had booked through the company comprised of a €200 million wholesale arm and €500 million OTA / retail arm.