On average, Austrians earn around 20% more on their holiday money this year than they do at home and therefore fare better than last year, according to UniCredit Bank Austria in its annual assessment on Monday. . The favorable euro exchange rate makes overseas destinations an average of 17% cheaper compared to 2022, with Caribbean islands such as the Dominican Republic leading the way. But Asian destinations like Japan also fall into this category.
“Based on pre-pandemic holiday behavior, there has been a significant increase in the ‘holiday euro’ in overseas destinations. In addition to the stronger euro, the partially lower price increase was also responsible for this,” said Stefan Bruckbauer, chief economist at UniCredit Bank Austria. However, planes are among the means of transport that most harm the climate. The aviation industry’s share of man-made climate change is estimated to be around 3.5%.
Getty Images/Cravetiger Overseas destinations are on average 17% cheaper compared to 2022 (Photo: Patagonia, South America)
Türkiye, Hungary, Croatia still significantly cheaper
Due to high inflation, in Turkey and Hungary, where in the past the “festive euro” was worth more, you get less than last year. “However, these two countries, along with Croatia, remain among the most popular holiday destinations where the holiday euro is worth more,” says Bruckbauer.
Among some of the most popular holiday destinations, tourists to Austria can also expect more for their “holiday euro” in Portugal, Greece, Slovenia and Spain than they do at home. In many countries in eastern and south-eastern Europe, the “holiday euro” is still worth significantly more than in Austria, particularly in Bulgaria, Romania and Poland, but the value here has fallen compared to the previous year.
City breaks remain expensive, but the trend is downward
For city breaks, Austrians still have to dig a little deeper in their pockets than they do at home – for example, in the UK, France and the US. “Compared to the previous year, however, the gap has narrowed significantly,” says Bruckbauer.
Switzerland remains the most expensive holiday destination
Despite a renewed appreciation of the Swiss franc since 2022, low inflation in Switzerland has resulted in a slightly higher value of the “holiday euro” compared to 2022. However, among the most popular holiday destinations, Switzerland remains clearly the most expensive option for Austrians. .
“Despite low inflation in recent years, appreciation in Switzerland continues to ensure that the ‘holiday euro’ there is around three-quarters of the value in Austria, which corresponds to its long-term average,” says Bruckbauer. Since there have been comparisons of values, the “holiday euro” has never been worth as much in Switzerland as in Austria.
Possible price deviations
The Bank Austria study compares general price levels in different countries. The price of goods and services that are particularly popular with tourists may differ from this. Furthermore, prices are considered in the average of the respective country, those in certain regions (eg capitals) may also differ.
Getty Images/adamkaz Above all, a stronger euro and high inflation in Austria are causing the “festive euro” to rise (photo: Big Sur, California)
Good numbers of bookings with tour operators
Tour operators are also expecting good booking figures for the summer of 2023. At TUI-Austria, the country’s largest tour operator, booking figures are 13% above the previous year and 96% of the pre-pandemic level. Despite inflation, travel is likely to remain a basic human need. “The money is obviously there,” TUI Austria Managing Director Gottfried Math said recently. However, shoppers would have to forgo bargains this summer.
“The price has increased, but Austrians are very fond of travelling,” emphasized Math. “People prepare a certain vacation budget, which is used to choose the destination of the trip.” It increased from six to eight percent in the summer of 2022. “They are, on average, below the rate of inflation.”
More than 50 percent “all inclusive”
Increasing prices would ensure a change in booking behaviour: “More than half of our total bookings in Austria are ‘all inclusive’. It is important for the customer to be sure of the price.” As all costs are indeed covered, Math also spoke of “fully comprehensive insurance for the holiday budget”.
Average 1,200 euros for summer holidays
On average, each TUI Austria customer spends €1,200 on their summer holidays. Currently – at the beginning of the season, which runs until October – the utilization of the total guaranteed capacities is 55%. “Because we’ve increased capacities at the same time, there’s still a lot available,” says Math. However, the latest rains have increased demand.