In November 2023, European package tours rose by 13.6%

According to Business Travel News Europe, data provided by hotel analyst STR indicates that the average daily rates (ADR) for hotels worldwide increased by 6.3% in July compared to the same month in 2022, with Europe recording the largest jump at 13.4%. Kaan Kavaloğlu, President of the Mediterranean Touristic Hoteliers and Operators Association (AKTOB), commented on the global increase in hotel prices.

"We expect the inflation control measures taken in the Turkish economy to balance the cost increases."

Highlighting the impact of unusual historical developments such as the global pandemic and the conflict between Russia and Ukraine, which led to the need to find alternative sources of energy, Kavaloğlu noted that these significant changes have affected economic balances worldwide, resulting in increases in various travel expenses such as inflation, stagnation, and accommodation. Despite manufacturing-focused economies like Germany and China not fully recovering from the pre-pandemic period, Kavaloğlu emphasized that service-oriented economies such as France and Spain have managed to return to their pre-pandemic economic trajectory. He stated, "According to IMF data, hotel prices in Europe increased by an average of 10% in 2023. As of November 2023, package tours in Europe recorded an increase of 13.6%. Particularly in the accommodation sector, rising labor costs and energy expenses are exceeding the average inflation rate in Europe. We expect a generally more stable trend in 2024. Although the impact of the significant disaster we experienced last year on our economy did not fully reflect tourism gains, we expect the inflation control measures and the balancing of cost increases in the Turkish economy to take effect. Vacation prices are likely to follow a parallel trend with these measures."

According to Eurostat, Kavaloğlu mentioned that energy prices have experienced significant fluctuations in recent years. He noted that with the onset of the COVID-19 pandemic, energy prices declined, but as the world made efforts to find alternatives to Russian gas in 2022, they largely increased. Despite the muted changes in energy prices, he highlighted that accommodation services, food, and housing were similarly affected by inflation.

Kavaloğlu continued by referencing STR data, which indicated that in July, ADR in Europe increased by 47% compared to July 2019. He pointed out that this increase was 51% in Italy, 31% in the United Kingdom, 30% in Spain, and 18% in Germany. He further explained, "Although year-over-year increases in Europe were less, the United Kingdom and Spain reported a 6% increase in July, while Germany recorded a 3% increase. Officials also announced that hotel occupancy rates worldwide remained 2-3% below 2019 levels. According to STR data, the Asia-Pacific region recorded the highest year-over-year growth in Revenue Per Available Room (RevPAR) in July, with a 36% increase. The Americas, on the other hand, experienced the slowest RevPAR growth last month, with a 1% year-over-year increase. Travel management company CWT predicted 'more moderate' price increases for the coming year. Last month, Key Data reported a sharp decline in the short-term rental market in the United States for the first six months of 2023. Due to an increase in occupancy offsetting a slight increase in Average Daily Rates (ADRs), RevPAR in Europe and worldwide rose by 5.7% in June, reaching $49."