Travel costs are expected to remain elevated as higher fuel prices continue to put pressure on airlines, but organised travel packages may become only 4% to 5% more expensive next year, according to a travel industry expert.
Akis Kelepesis, honorary president of the Association of Cyprus Travel Agents, told Sigma TV’s Mesimeri kai Kati programme that airlines have gradually increased fares over recent months and are likely to face continued financial pressure during the winter season.
However, he does not expect dramatic further increases in airfares based on current conditions, noting that airlines have limited scope to pass additional costs on to passengers without risking lower demand.
Airfares have already increased
Kelepesis said airlines have been raising ticket prices over the past three to six months, although the extent of the increases varies between carriers.
Fares also depend on supply and demand, meaning fuel prices are not the only factor influencing what passengers pay.
He warned that airlines could face significant financial pressure and losses during the current period. At the same time, he believes the market may gradually find a new balance as carriers adjust their prices to prevailing conditions.
“My assessment is that I do not expect anything dramatic in terms of further increases,” he said.
His comments come amid wider concerns in the aviation industry about the possibility of substantial fare increases.
Holiday packages may rise by up to 5%
Kelepesis distinguished between airline ticket prices and the overall cost of organised holidays.
Responding to forecasts suggesting that airfares could increase by as much as 20%, he estimated that the total price of organised travel packages would rise by no more than 4% to 5% next year, based on the information currently available.
He explained that package prices depend on several factors across the tourism sector, rather than fuel costs alone.
The estimate is not a guarantee, however, as changes in energy prices and international developments could affect the outlook.
Early bookings remain important
Kelepesis advised travellers to plan their trips and book early to improve their chances of securing lower prices.
He said booking in advance remains a longstanding way to find better deals and is not a strategy linked exclusively to the current rise in fuel costs.
Travellers should also monitor prices closely, particularly ahead of the winter season, as forecasts remain uncertain.
International developments could affect prices
The future cost of air travel will depend partly on movements in international oil prices, Kelepesis said.
Positive developments in the Middle East or the Russia-Ukraine war could ease pressure on oil prices and lead to a reassessment of current forecasts.
He also noted that consumers do not always change their spending habits immediately after prices rise. In his assessment, it can take five to six months for the impact of higher costs on consumer behaviour to become apparent in the market.
Despite the pressure on travel budgets, Kelepesis said demand for travel remains strong, pointing to the long-term growth of global tourism.
For travellers in Cyprus, the outlook suggests that costs may remain high, even if the steepest increases in organised holiday packages are avoided. The final picture will depend on how fuel prices, airline pricing and demand develop in the coming months.
Also read: Ryanair CEO warns of biggest-ever ticket price hike
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