Holiday rush sees prices rise in Costa del Kasbah

The ‘Costa del Kasbah’ resorts of Turkey and Egypt no longer represent the best value for British tourists hoping to find cheaper holidays, warns the UK’s largest independent travel retailer The Co-operative Travel.

British bookings to Turkey and Egypt for summer 2009 have risen 8%, compared to a fall of 22% to traditional favourite Spain. Sharm el Sheikh is seeing the biggest increase in demand, with bookings up 49%.

The Co-operative Travel puts this increase in bookings down to more British holidaymakers seeking cheaper holidays and guaranteed sunshine.

However, the travel retailer warns that extra demand over the last two years has led to significant price increases, which means that these resorts may no longer offer the value for money of previous summers.

Trevor Davies, Head of Retail Distribution at The Co-operative Travel says, “Turkey and Egypt have been popular in recent years as they are perceived to offer better value for money. However, increased demand has resulted in higher prices and holidaymakers need to look more closely if they want a genuine bargain.

“Spain is one destination where prices have held steady since last year and it may be that this traditional favourite will offer holidaymakers the best value if they book early enough.”

The Co-operative Travel’s research confirms this. While all prices for 2009 holidays have risen by an average of 18%. A typical family holiday to Dalaman, the leading Turkish destination, has risen 27% (from £1,154 to £1,466), while an equivalent holiday to Majorca has risen just 3% (from £1,455 to £1,502).

Holiday living costs have also narrowed over the last year. The price of a typical shopping basket of holiday items bought in Turkey was £44.91 in 2007. However, this year the cost for the same items had risen to £63.19, compared to £64.41 in Spain**.

Holidaymakers are also advised to look out for December and January deals to reward early bookers, as cuts in capacity are like to mean fewer cheap holidays available later in the year.

For example, The Co-operative Travel has today (27 December) launched over 5,000 European holidays for £199 per person and worldwide holidays from £499. It is also offering customers the chance to book for just £10 deposit, with nothing else to pay until April.

Trevor Davis adds, “The battle on the high street will be for early bookers. Retailers will be keen to offer good prices and all-inclusive deals that will tempt people from taking a wait and see approach.

“Travel agents will also be keen to promote the financial protection of ABTA and ATOL bonding, ensuring people’s bookings are safe in an uncertain climate.

“Realistically these early deals will be the best opportunity for consumers to get a bargain. In 2009 there will be an estimated 1 million fewer holidays for sale, on top of the reduction of 1.25 million places we saw in 2008. This will mean there will be very few cheap late deals available.

“People who leave booking their holiday to later in the year are likely to have very little choice or face higher than normal prices to get their first choice destination."

Top Holiday Destinations for UK Holidaymakers –Summer 2009

1. Majorca
2. Lycian Coast (Turkey)
3. Orlando, Florida
4. Larnaca (Cyprus)
5. Costa Dorada
6. Ibiza
7. Menorca
8. Bodrum Peninsular (Turkey)
9. Sharm el Sheikh (Egypt)
10. Bourgas (Black Sea coast, Bulgaria)