Surging demand has meant airlines and hotels are less inclined to offer discounts. While the cost of living has squeezed household budgets, some middle-class families saved up large pots during the lockdown and are now eager to spend it. “If hotels are selling enough rooms at those prices they don’t need to offer cut prices,” Mr Jones says.
Even budget airlines, known for their bargain prices, no longer need to price quite as aggressively as they might have done due to uncertainty in fuel prices caused by the war in Ukraine, Mr Jones explains. “Even Ryanair doesn’t need to price that low anymore. People are willing to pay.”
In March, Ryanair boss Michael O’Leary said airfares could rise by as much as 15pc, following his comments last summer that the era of the €10 ticket was over.
There’s no doubt that at the lower end of the marketplace, our really cheap promotional fares – the one euro fares, the €0.99 fares, even the €9.99 fares – I think you will not see those fares for the next number of years,” he told the Today Programme.
Hugh Aitken, of comparison site Skyscanner, says plane tickets are priced by demand, adding that there are still “incredible deals for people who shop around”.
“One common practice of airlines is to have fare classes, and as one fare class fills up, they open the next one for purchase,” he says.
“This is one of the reasons why ticket prices fluctuate, and why booking at certain times – for example, at the last minute – may be more expensive as there is usually less supply to meet demand.”
Accommodation costs have also shot up as hotels make up for business lost to the pandemic, while staving off the effects of inflation. A recent study by the Post Office found that hotel stays have increased in 27 out of 35 cities. Only two cities – Lisbon and Vienna – saw increases of less than 20pc.
