Holiday package costs surge by an astounding 44% post-pandemic

Revamped Article:

Pricey Summer Vacations: Spaniards Dig Deeper for Less Travel

Hey there! Let's chat about the rising cost of vacationing in Spain this year. If you're a Spaniard contemplating a summer getaway, get ready to shell out more cash than four years ago, especially for domestic travel. The cost of tourist packages has experienced a whopping 44% surge since 2021, despite a recent softening in price hikes.

Pre-packaged vacations, ranging from basic flight and hotel combos to extensive excursions with guided tours, are a minority choice for Spanish travelers. As per data from the Resident Tourism Survey carried out by the National Institute of Statistics (known as Familitur), only about 4% of total trips include tourist packages. Interestingly, the booking peaks typically occur outside the summer season, aligning with Easter and Christmas.

Now, the price of tourist packages in Spain has skyrocketed by a staggering 44% between May 2021 and May 2024. Last summer, the record price was hit in August, a whopping 55% increase over August 2021. Although they've grown a meager 1.4% over the past year, they recorded the highest price for May this year.

Tourist packages serve as a good barometer for overall travel prices, as they encompass fluctuations in several travel-related expenses. "Tourist packages are essentially a mix of various services, such as transportation, accommodation, guides, transfers, restaurants, visits... Everything has gone up, and if the ingredients go up, the tourist package goes up too," explains José Manuel Lastra, vice president of the Spanish Confederation of Travel Agencies. He acknowledges that "tourist prices have risen above the general price index."

Lastra notes a significant drop in tourist package prices in May, falling by over 9% compared to April, hinting at competition among travel agencies. However, both in April - when Easter was celebrated - and in May, the price index for tourist packages reached its all-time high for those months.

Summer Awaits New Price Peaks

With summer predicted to bring an unprecedented tourist influx, it's not surprising if a new all-time high is set in August. Given that Spain is forecasted to approach or even surpass 100 million foreign visitors, the record set in 2024 - when the price of tourist packages rose by 55% over the level registered in the same month of 2021 - might be challenged this year.

Packages That Pain Your Wallet: A Closer Look

Although organized trips consist of various components, the surge in accommodation prices is glaringly evident in this trend. "Accommodation is one of the most crucial factors in tourist packages, of course it's impacted the overall cost," confirms Pablo Díez, an economist and researcher at the New Perspectives on Tourism and Leisure group at the Open University of Catalonia. He suggests that even during closed vacations, it may be cheaper for national tourists to jet off to the Caribbean than journey to the coast of Cadiz, referring to the cost difference between domestic and international packages.

On average, going abroad on a package is still pricier than traveling within Spain. A rough estimation of average package prices based on Familitur data revels that going abroad tend to cost over 1,250 euros, while a national package rarely exceeds 400 euros.

Despite representing a tiny fraction, packages paint an accurate picture of overall travel pricing trends.

Intriguingly, international packages show a smaller increase compared to national ones. While tourist packages in Spain have risen by 44.2% since the pandemic, those for traveling abroad have seen a 33.5% increase, a significant jump, yet relatively lower.

It's worth noting that these price comparisons focus on expenses incurred by residents in Spain, as the Consumer Price Index (CPI) does not include the cost of packages offered by tour operators abroad. Nevertheless, these comparisons can help us understand the dynamics of the organized travel market, such as the pronounced seasonality of domestic tourism, whereas international package costs show fewer fluctuations. In this context, Pablo Díez argues for "working on the de-seasonalization of the Spanish tourist market, even with shorter stays and in the low season."

Transport: The Falling Currency of Travel

The relative increase in the cost of national packages compared to international ones can be attributed, in part, to escalating accommodation prices and the steep rise in air travel costs - a critical component of organized travel abroad. According to the CPI breakdown, international flight prices have ballooned by 13% since 2021, peaking in April of this year.

In contrast, domestic flights experienced a more moderate 5% increase in May compared to the same month in 2021, although April - with Easter - marked the fourth month with the highest price level for national tickets, trailing only the three months of last summer. This trend suggests new record prices for domestic flights this summer.

On the other hand, sea transport experienced a sizable price hike since the pandemic, over 40%, reaching its historical high in January of this year. On the brighter side, bus and train transport took a downward turn, decreasing by 20% and 4.1%, respectively, making them the most budget-friendly options for travel within Spain.

If none of these options appeal, you can always hit the road with your own vehicle, although it's pricier than four years ago. Between May 2021 and May 2025, fuel prices increased by 8%, according to CPI data. Despite a recent drop, fuel prices still remain higher than they were prior to the pandemic. Filling a medium-sized 55-liter tank costs around 80 euros with gasoline and 75 euros with diesel, based on data from the European Union's Petroleum Bulletin.

So, fasten your seatbelts, fellow travelers. It seems that everything is more expensive for the post-pandemic tourist, even just buckling up for the road trip.

Enrichment Data Insights:

Several factors contribute to these price increases, including rising inflation and costs in tourism-related services, increased tourist taxes and fees, and high demand for tourism, particularly in Spain.
The total number of tourist packages remains low, with international packages having a more significant role in the overall numbers.
The traveling seasonality is more pronounced for domestic packages, with sharp increases in the summer and Christmas months, whereas international packages do not show such pronounced fluctuations.
Air travel prices have grown faster than other components of tourist packages and are a significant factor.
Despite rating limitations, analyzing tourist package prices in Spain can help understand the dynamics of the organized travel market.
Suggestions for de-seasonalizing the Spanish tourist market have been made by some experts to alleviate the pressure on prices during the peak season.

The steep increase in tourist package prices, particularly for domestic travel, has impacted many Spanish individuals' lifestyle and average finance, as they are forced to allocate more funds towards summer vacations.
Despite the rising costs, travel remains popular among Spaniards, with data showing that spending on travel packages, both domestic and international, has surpassed the average annual growth rate of other components in the Consumer Price Index.