Holiday prices still predicted to rise

Basic brochure prices for holidays in Europe could rise in 2009 by between 15 and 20 per cent because of rising fuel costs and the weakness of the pound against the euro, the Association of British Travel Agents (ABTA) are predicting. Holidays outside Europe could well rise by between 10 and 15 per cent. Put in monetary terms, this could mean a rise of at least £300 for the average two week summer break as major operators slash the number of deals available. If global oil prices continue to rise, holidaymakers could also face fuel surcharges of up to 10 per cent on top of these increases or an extra £250 on an average family holiday. According to ABTA, the cost of an average two-week break this summer is £560 per person. A family of four, therefore, will spend an average of £2,240 on their annual break. But next year this will rise to between £2,464 to £2,688 if prices rise between 10 and 20 per cent. Independent travellers, who do not book with a travel company, should avoid some of the price increases but will still be hit by higher flight costs. These alone are expected to rise by up to 15 per cent by next summer driven by the increased cost of oil. With this in mind - it is importnat to remember that travel insurance is an essential, not a luxury. Ensuing you have a comprehensive travel insurance policy will ensure you are protected for most unfortunate eventualities.