The most expensive vacation ever awaits us

The upcoming holidays will be the most expensive in history for most traveling Poles. This applies to both those who go abroad to rest and those who rest in Poland. The weak zloty and global inflation are hitting tourists. Even staying at home does not guarantee an escape from the high prices, because Poland is one of the countries where prices are rising the most.

Weak zloty

The first element that influences this year's high prices is the weak zloty. The prices of Poles' holidays abroad are closely related to the zloty exchange rate against foreign currencies. The weaker the zloty, the more expensive trips abroad become. The vast majority of trips from Poland go to countries where the euro is in force or is used as a settlement currency in the tourism industry. Currently, we pay PLN 1 for 4,67 euro, which means that we will pay PLN 1000 for a vacation worth EUR 4670. A year ago and two years ago it would have been PLN 4560, but then the travel options were significantly limited. In 2019, i.e. in the last year before the pandemic, it would cost us PLN 4300. Only because of the weaker zloty, holidays may now be 9% more expensive. than in 2019.

Source: eToro

Recently, the zloty has not only been weak, but also its rate is highly volatile. This means that the rate of our currency fluctuates more than usual. This is primarily due to the international tension related to the war in Ukraine, but also to concerns about the future of the Polish and world economy. Increased volatility means that tourism businesses run a higher risk of a sudden change in course. Companies protect themselves against this risk, but it generates additional costs. And these costs are passed on to the customer, which makes the trips even more expensive.

Rising prices

The second element influencing the cost of the growing cost of our holidays are the rising prices of products and services. These prices are rising both in Poland and abroad. So no matter where we want to go on vacation, we will pay more.

Source: Polish Chamber of Tourism, Eurostat, GUS, CAPMAS, INS, INSTAT

* In the case of Poland, GUS data for 04/2022, for Egypt, Tunisia and Albania, local statistical offices data for 04/2022, for other countries Eurostat HICP data for 03 or 04/2022

Another element increasing the price of leisure is inflation. In the last 12 months, prices in Poland increased by an average of 12,3 percent. Of the most important countries where Poles go on vacation, only Turkey (as much as 61,1 percent y / y) and Egypt (13,1 percent) percent y / y). In other countries inflation it is lower than in Poland, but everywhere it exceeds 7 percent. This means that when traveling to these countries, we will pay from a few to a dozen or so percent more for goods and services than in 2019. In the case of Turkey, the significant price increase is partly offset by the weakening of the local currency, but here too, tourists feel the price increase. The global increase in oil prices, which translates into rising fuel prices, is responsible for a significant part of the increase in inflation in individual countries.

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.

Expensive fuel also means more expensive car and coach trips and plane flights. Fuel for rental cars will also be more expensive. Rental prices may also rise due to rising car prices around the world and their limited availability. These elements mean that the upcoming holidays will be the most expensive in history for most of us. And if anyone thinks that by staying at home they will escape from rising prices, they are wrong, because Poland is one of the countries with the highest inflation. When all prices rise sharply, it is also easier for tourism companies to raise them. Therefore, it seems that they may achieve record margins and profits in the near future.

Courses and data valid as of 11.05.2022/18/00, XNUMX:XNUMX CET