This year’s flights on last year’s fuel

By Steve Witt, co-founder of travel giant Not Just Travel

Holiday and business travel aren’t currently being affected by fuel prices as airline companies buy their fuel a year in advance and hedge their prices accordingly. This year’s flights are being fuelled by last year’s oil prices.

With airlines confirming that they expect barrels of oil to double in price, the advice is to book early to guarantee lower prices.

However, one factor to consider is that in the flight booking terms and conditions, airlines are able to charge a fuel levy in the case of fuel increasing significantly. Historically, this has never been added, but there is a chance it may be added to bookings in the future – it is reliant on how extreme the fuel crisis becomes.

How to protect your money

Whether it’s a trip for business or leisure, it is far better to book a package deal, with accommodation and flights sold together, ideally through a travel agent, than piecing a holiday separately. It means you have better protection, and with a travel agent on-hand, they can help solve issues as they arise, so you don’t spend precious time on holiday on the phone to companies. Travel consultants are paid by the holiday companies, not the consumer and so there is no cost for their services to the consumer.

Brexit, fuel, Covid = scarcity

In 2022 and 2023, scarcity will be the biggest problem customers face.

In early APril, EasyJet and British Airways announced they had cancelled hundreds of flights due to staffing shortages caused by covid and recruitment issues.

In some cases, customers are turning up at hotels, only to find them shut having never reopened after covid, or because the cost of opening is too great.

Two years of Covid and, in the UK – Brexit, has meant a huge shortage of staff in the tourism and hospitality sectors.

Normally, this would be a noticeable factor in cities such as London, however, as Americans and Russians aren’t travelling to Europe right now, the effect has been softened due to less demand.

Not all airlines are flying at capacity. In fact, there were 500 “ghost flights” last month, where planes were flying almost empty. With the increase in fuel prices, this will, and cannot, continue in the future.

What can the consumer do to get a deal?

The clear advice is to book early to secure the best price and availability. With fuel prices, Covid and Brexit all having significant impact right now, beating the rush means you’re more likely to get the holiday you want at the best price.

Protect your money by booking a package, as well as through a travel consultant who will be on hand to sort out any issues in the run-up to the holiday, or while you’re away.

Pay by Direct Debit. Choose a travel company (Not Just Travel is an example) which allows you to pay for your holiday in monthly instalments. Direct Debit also guarantees you further protection for your money, similar to paying on a credit card.

Look at destinations that offer good value. Turkey is more affordable due to the fall in the lira. Madeira, Malta and Cyprus are eager to welcome tourists and so are offering excellent, affordable holidays.

Cruises are offering fantastic value. 16 new ocean cruise ships and 12 new river cruise ships have launched since the pandemic. That means there are a lot of surplus beds sailing, and so there are great deals to be had. We are seeing a demand in cruises as a result and so booking early is advised. Cruises are now less about the facilities on-board (which are impressive) but more about the different destinations you wake up to.

What is the long-term effect of the fuel crisis on travel?

One bonus from the fuel crisis is that it is speeding up travel companies’ efforts to be more sustainable. Both hotels and airlines are now more committed to reducing the environmental impact (and their own costs) on the environment. Jet2 is a company that is leading the charge with its focus on sustainable travel.

Travel trends – Sustainable travel

Experiential travel is the new big thing. Both young geo-adventurers in their 20-30s are looking to trek through the jungle or cycle through the deserts. This is a huge growth area.

Solo travellers – not necessarily singles, but members of the family who want a solo experience in a group, such as a mother or father wanting to get away from the family after two intensive years together, and walk the Dolomites or Pyrenees in a guided tour in a small friendly, like-minded group. It’s a more environmentally friendly way to travel and is an area seeing significant growth. However, as the industry relies on small, bespoke companies, scarcity will soon be a problem.