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Flying is already significantly more expensive. Now inflation is a factor in many popular destinations.
Sun, beach and foreign languages - usually at lower prices than at home. That’s what people in this country have been preparing for for decades during the summer holidays.
But this narrative is currently faltering. Be it in Italy, on Mallorca or in the USA: prices are shooting through the roof everywhere.
Global inflation and Switzerland
So Switzerland is no longer just a “high-price island”, but also an “inflation island”. Specifically, the augurs in the euro zone in the 27 member states expect inflation of around seven percent for the current year. For comparison: In Switzerland, the State Secretariat for Economic Affairs (Seco) assumes two percent.
How does this affect the costs for travelers from Switzerland? According to figures from the travel insurer Europ Assistance, a subsidiary of Generali Insurance, the average Swiss household intends to spend CHF 3,443 on the summer holidays this year.
Caption: Beach guests in Dubrovnik, Croatia (06/24/2023) IMAGO / Pixsell
If you want to calculate how far that goes, you can use the so-called purchasing power parity. The last figures from the Federal Statistical Office (BFS) are from 2021. In order to purchase a certain shopping basket, which cost 100 euros in the EU, you had to pay 167 francs in Switzerland and only 111 euros in Germany; in France 108 euros, in Italy 98 euros and in Austria 114 euros.
Price level indices in Europe
The figures for 2022 will not appear until the end of the year. In view of the steep inflation rates in our neighboring countries, a significant increase is to be expected for the current year. Hans-Markus Herren, Head of Consumer Prices at the FSO, urges caution: “Purchasing power parities have remained relatively stable over the years.” The decisive factor is whether the prices are calculated in Swiss francs or in the local currency. The strong franc could provide a balance.
The desire to travel seems unbroken
Anyone who asks around in the industry will notice that there is still little sign of a price shock. Markus Flick, media spokesman at Kuoni, explains that travelers from Switzerland are currently spending around ten percent more than in the previous year. What exactly these costs are for is not really clear. It is quite possible that one or the other after three years of Corona simply wants to afford more.
Jürg Stettler, tourism expert at the Lucerne University of Applied Sciences and Arts, has also observed this. “Travel behavior returned to normal relatively quickly after Corona.” He also sees no fundamental change in this dynamic due to the current inflation rates in Europe: “At first glance, the high prices abroad are spoiling the holidays for the Swiss.” But the strong franc makes up for it.
Traveling is something you afford to do for a long time.
One area that has undoubtedly become more expensive is flying. According to the comparison service Comparis, the costs have risen by 46 percent compared to the previous year. “The airlines are currently still operating with reduced capacities. This is in high demand. Ergo, the price goes up,” says Jürg Stettler. In the medium term, however, this could change again and a price war could start.
Legend: “Summer, sun, ridiculously expensive,” says the “Spiegel” about the high prices. (Pictured: Beach promenade in Port de Soller on Mallorca, October 24, 2022) IMAGO / Schöning
In the longer term, the political discussions about a CO₂ tax could mean that traveling by plane would become less attractive. But here, too, people would be flexible. “Travelling is something you afford for a long time. Then you travel at different times; somewhere else or for less time.”