PRICE OF SUNSHINE HOLIDAYS TUMBLES –FOR NOW

Bargains galore but costs ‘will soar in 2017’

PACKAGE holiday prices have plummeted to record lows amid warnings that the cost of a sunshine break is set to rocket in the New Year. Travel companies are trying to do as many deals as possible to counteract uncertainty over the weak pound, rebounding oil prices and an expected rise in inflation in 2017.

Meanwhile, European resorts and long-haul destinations are competing to woo British tourists who are shunning some countries over terrorism fears.

As a result, prices of many foreign holidays have fallen to levels not seen since the 1970s.

Last-minute Mediterranean deals from Scotland are available for as little as £42 a week, while a return flight from Edinburgh to Hong Kong was reportedly on offer recently for only £10 before tax.

Janice Hogarth, secretary of industry body the Scottish Passenger Agents Association, said: ‘People

have stopped going to Egypt, Morocco, Tunisia and parts of Turkey because they don’t feel safe there, while the migrant crisis has affected the numbers going to Greece as well.

‘In 2016, that pushed up prices for what were seen as safe places like Spain and Portugal – but holidaymakers then realised that they could go to Dubai for the same price as Tenerife.

‘So now we’re in the situation that short-haul and long-haul are competing for the affections of tourists for 2017, particularly couples and older people who are often looking for something new.’

Mrs Hogarth added: ‘Uncertainty over the weak pound initially caused hesitancy but, lately, it has actually been encouraging holidaymakers to book early for next year. Cruises are also cheap because there is so much spare capacity around, partly due to Americans not coming to Europe as much because of the perceived threat of terrorism.

‘All these things have conspired to produce a spell of very low prices right now.

‘I was told recently of a return flight to Hong Kong for £10. With Air Passenger Duty and taxes, the final cost was only about £300. But, just like £42 for a week in Portugal, these prices are incredibly low; they will rise come the New Year, of that there is no doubt.’

Last night, Teletext Holidays was advertising a two-week, self-catering break at the three-star Algarve Gardens, Albufeira, Portugal, for £93 per person, flying from Prestwick on November 19. A similar deal at the town’s Vilanova Resort, leaving on December 3, is only £84.

A week at the Semiz Suite Hotel in the Turkish resort of Alanya, flying from Glasgow, is on offer for £147 each.

Further afield, departing from Edinburgh, cheapflights.co.uk is offering two weeks in Dubai’s Queens Hotel for £511 each based on two people sharing.

Early offers for 2017 include

‘The prices are incredibly low’

eight nights’ B&B at Thailand’s Khao Lak beach resort in May offered on offer with Trailfinders for £489.

Barrhead Travel has a fortnight in Lanzarote, self-catering, flying from Glasgow in April 2017, at £317.

Barrhead Travel chairman Bill Munro, said: ‘We’re in a cut-price bubble just now. There is uncertainty in the country, everyone is feeling it whether consumers or businesses, so there is an effort by travel agents to get bookings done early and that means there are good deals on offer.

‘The weaker currency after the Brexit vote hasn’t affected demand for holidays, however, a lot of transactions in the industry are carried out in dollars. Travel agents and airlines buy up dollars at a fixed rate six to nine months in advance – which is called hedging – so they can plan with some certainty.

‘A lot of these bulk purchases were made before the Brexit vote when £1 would buy $1.60.

‘That means the price of package holidays still hasn’t been influenced by the falling value of sterling but, come January, the next round of hedging will see the industry planning ahead at $1.30. If you add in rising oil prices, which will affect the price of cruises in particular, and the Bank of England claiming inflation could be on the up in 2017, there is no doubt that the cost of a holiday is about to rise.’

Meanwhile, a survey by foreign currency supplier First Rate has found that 53 per cent of Britons are intending to take an overseas break in 2017, compared with 55 per cent at this time last year.