End of cheap travel in sight

All signs indicate that the days of cheap travel are coming to an end. But don’t go without your holiday this year, as this could be the last chance of a trip at a reasonable price.

‘You’ve never had it so good’ appeared in headlines just a year ago when incredibly good holiday values were available for all types of travellers.

Air fares, car hire costs, ferry and rail fares and even insurance premiums were all so much lower than prices that travellers were paying a decade earlier. Even currency exchange rates were attractive to UK holiday makers a year ago. The pound was worth €1.41 and US$1.92, making hotels and villa rentals on the continent much cheaper than equivalent properties in Britain, and US accommodation was excellent value as well.

In real terms, prices had never been so attractive, and travellers were spoilt for variety and opportunities. For a full decade holiday makers were accustomed to air fares that at times were lower than the cost of travel to the airport itself.

It looks quite certain that our luck is about to run out. Plenty of cheap deals are still around at the moment, but the summer of 2008 could be the last opportunity to enjoy reasonably-priced holidays, before soaring oil prices and the weak pound make their full impact on the travel industry.