Families can expect to save several hundred pounds a year because airlines are being forced to discount prices.
Cheaper travel may help Tenerife's economy
Holidaymakers can look forward to a decade of cheap travel because of the global recession, according to industry experts so for those who rent out property in Tenerife this is great news.
One company estimated that the average British family spent nearly £2,092 on a holiday this year than a fall of £257 compared to 2007.
According to a Euromonitor the fall in spending has been due to families economising, staying in less comfortable surroundings and hunting for cheaper flights. In turn, this has led to companies discounting heavily as they try to cope with the dramatic drop in travel.
As a result, Euromonitor says, prices were 20-30 per cent lower this year than last and the trend is set to continue for a decade, said Caroline Bremner, the head of the research team. “People have been trading down,” she said. “The industry is caught in a vicious circle of discounting. “It will be hard to bring prices back up, even when there is a recovery, because people have got use to discounted prices.” The impact of the recession was outlined at the start of the World Travel Market in London’s docklands.
Ms Bremner also believes that Britain is set to follow America where the travel industry is now catering to the “funemployed” – people who, having lost their jobs, are spending their redundancy pay on the holiday of a lifetime.
Companies are offering discounts to the new army of jobless, using slogans like “laid off, take off” to win the business.
Package holidays had been on the wane with the increasing use of the internet and holidaymakers booking do-it-yourself holidays, hunting for the cheapest flights and accommodation. So if you have a property to rent or let for holiday or longer term, providing your price point is correct you should reap the rewards of this new era.
