2015 a great year to take that overseas holiday!

Could 2015 be the best year EVER for taking an overseas holiday?

Well…………….there is a distinct possibility that the answer is yes!!

So how can this be??

  • Fuel prices- The biggest operating cost for any airline is the price of fuel- over the past few years the trend has been towards ever increasing oil prices which peaked at around $150 per barrel. At the time of writing oil prices had shrunk to around $46 per barrel- the lowest price seen for around 6 years. Whilst airlines hedge some fuel costs (forward buy, so as to avoid potential huge future fluctuations) experts predict that the low prices currently seen will be around for some time and will feed through to air fares.
  • Strength of the pound- Sterling has continued to climb against the euro making for a great exchange rate, which equals more spending power when on holiday. A typical current exchange rate against the euro means that you are likely to get around 20% more euros than when the pound was trading at its lowest point against the euro a few years ago. So your spending money will go much further than for many years. Remember also that overseas hotel rates are dependent upon currency exchange rates- once again stronger sterling equals better rates.
  • Low inflation in the Eurozone- Continuing pressure on jobs and salaries has seen not only low inflation, but for the first time since the 1930’s- European deflation. Once again this equates to a fiercely competitive retail environment where prices stay low in shops and restaurants, making for great shopping and eating experiences at exceptionally great prices.
  • Competition- Intense competition amongst tour operators and airlines continues to ensure that the U K remains a ‘value for money’ place to book your overseas holiday.
  • Air Passenger Duty (APD) tax reductions- The Chancellor recently announced that from May 2015 children travelling in economy under the age of 12 will no longer have to pay APD. This will be extended in 2016 to include children under the age of 16. The tax which has widely been perceived within the travel industry as an unfair one, added additional cost to travellers budgets and the change will be another factor taken into account when tour operators set prices.

 

So there you have it! In our opinion this IS a great year for that overseas European holiday. Do remember though that like most other products there is still an element of ‘getting what you pay for’!  A recent survey suggested that nearly 60% of people asked intend to take an overseas holiday in 2015, so our advice is to be realistic and remember that if you want to ensure the very best choice, ‘book early’. Yes there is always the possibility that the price of your chosen holiday may come down, but there is also the possibility that the last room or airline seat might have gone to someone else if you choose to delay booking!  Do remember that JPT will be delighted to guide you through the holiday booking experience and that we offer unbiased advice and financial security- something that many of our competitors can only dream of!! 

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