Holiday prices to soar as spike in demand predicted for summer getaways

Holiday prices will soar this week, a travel expert said, as the industry is braced for a huge surge in demand for summer getaways.

Prices for flights and packaged holidays in the usual peak month of August are still far below expected levels, but Paul Charles of consultancy the PC Agency said that a spike in demand would push fares upwards.

The announcement of a list of countries which are exempt from quarantine rules in England and the changed official advice on overseas travel ended weeks of uncertainty for potential holidaymakers.

The list includes popular holiday spots Spain, Greece and Croatia, although some locations have still closed their borders to the UK.

However, Portuguese officials have reacted angrily to the country’s exclusion, saying that it stands 100 per cent ready to welcome British tourists.

The past two weeks has seen demand growing steadily, said TravelSupermarket, a price comparison website. Demand for early July increased by almost 10 per cent in the week beginning June 15 and 17 per cent in the week beginning June 22.

There has been a 110 per cent increase in demand for trips to Mallorca and the Costa Del Sol in the past week, according to bookings website Expedia.

Mr Charles said there was a lot of pent up demand for holidays but that prices remained low.

“Airlines are pricing to create demand rather than for existing demand,” he said. “They are expecting people to book now from this weekend and that’s why fares are still very low.”

According to flight booking website Skyscanner, a return flight to Alicante in July is currently 69 per cent cheaper than its two-year average at £32 and a return to Venice in August is £69 compared to an average of £137.

Mr Charles said: “The fares are at rock bottom but they won’t stay there for long. Super Saturday will be a catalyst for boosting confidence.”

He said that most airline pricing was now automatic, meaning a major uptick in demand would be picked up by an algorithm which would cause prices to rise.

Packaged holidays are also far below average, according to TravelSupermarket. The firm said there were deals for less than £200 per person for seven nights in Mallorca in August, usually peak season.

Meanwhile, a row has broken out over Portugal’s exclusion from England’s travel list.

Last night Luis Araújo, the country’s president of tourism, told the Telegraph he was “disappointed” at the “confusing” message from the UK Government.

He said: “We fully maintain and stress unwavering confidence in the safety of the nation to welcome back international visitors.”

Visit Portugal said that Madeira and Azores Islands have “almost no risk of infection” but are still on the UK’s red list as part of Portugal, despite the FCO lifting restrictions on them.

The country’s foreign affairs minister told the BBC that the decision was “senseless and unfair”, while Portugal’s President, Marcelo Rebelo de Sousa, said that the UK and Portugal have a history of supporting each other, and that this is not the end of that history.

The Department for Transport said that Portugal is an important friend and partner, but that the risk of travelling to the two islands is less than the mainland. It said it is normal for travel advice to differ within countries.