Rising oil prices above $120 a barrel are making summer vacations much more expensive than they were a year or two ago. Thousands of Russians will feel it for themselves at the end of May. The New Times dealt with the collisions of the tourist market
This is not an anecdote from the era of unbridled "oil" inflation, but a completely trivial story. On May 3–4, Sky Express Airlines held a Happy Hour promotion. Tickets from Moscow to St. Petersburg, Kazan and Kaliningrad were offered at a fixed price - 2300 rubles, and to other destinations - 2800 rubles. Lucky passengers checked the fixed fares, and it turned out that their winnings were from 100 to 600 rubles (depending on the direction). However, among the "discounters" there were meticulous citizens. And it turned out that exactly at noon on May 3, the aviators sharply increased their "permanent" prices, and already on the evening of May 4, after the end of "happy hours", they lowered them to the usual level. And here is the result: regular tariffs turned out to be lower than the “happy” ones by as much as five hundred rubles (1800 versus 2300)!
Flew...
According to the Internet portal Travel.ru, the low-budget company Sky Express has resorted to similar tricks before. But this time, a harsh economic reality loomed behind the advertising hoax. From May 1, the fuel surcharge for each air ticket has been increased from 500 to 800 rubles, or more than 50%. The price of jet fuel has increased by 12.3% since May 1. It seems to be a little. But kerosene went up in price both in March and April (by 20%), and if we count from September last year, then the total increase will be 70%!
“The level of May prices announced by the oil industry, as well as plans for further price increases, will finally undermine the economic base of Russian airlines,” reads an open letter from major air carriers to Prime Minister Zubkov, including Transaero, S7 Airlines, and KD Avia. 1
As noted in the document, jumps in aviation fuel prices occur when airlines have already drawn up proposals and entered into agreements with tour operators for summer transportation programs. This means that carriers are faced with a dilemma: either fly at a loss, or sharply raise prices, violating contracts with travel agencies. At the same time, aviators have no opportunity to save fuel. According to Aeroflot Deputy General Director Lev Koshlyakov, the operation of Tu-154 aircraft, the basis of the outdated Russian aircraft fleet, is becoming unprofitable. Companies will either reduce the number of flights or cancel entire routes. If the Tu-154s are laid up at all, then the cost of air tickets could double. 2
For the future - it will not work!
Tour operators and their clients who have already bought tours for the end of May-June will become the first victim of the upcoming price hike. It is known that two-thirds of those who go on vacation fly not by regular, but by charter flights. According to the current rules, paying for air tickets in advance does not exempt the client from additional payment for a possible increase in fares.
“Airlines give tickets either a day before departure, or even an hour or two before the flight,” says Irina Tyurina, spokeswoman for the Russian Union of Travel Industry. “They have the legal right to change tariffs.” The Law "On Tourism" gives the tourist the right to refuse the tour if he is required to pay extra. But in reality, almost everyone pays. Because it is very difficult to buy another tour, especially in the "hot" season. If we are talking about small amounts - $ 15-20 per ticket, then tour operators themselves often pay extra (just not to make a fuss with customers). However, on long-distance destinations (Thailand, India, South Africa, etc.), additional charges may be $150–200 per person. And here travel agencies are already powerless: business profitability of 3-5% does not allow making generous gifts to customers.
Last summer, travel agencies bought places in Egypt for $300–310, now they cost $470–550. A flight to Turkey cost $210, now it costs $360, Tunisia and the United Arab Emirates have risen in price from $320 to $460… By the end of May, tour operators are waiting for another 20% surcharge. And what will happen in July-August, today no one can even guess.
Characteristically, on May 5, when air carriers turned to Zubkov, the Russian Union of Travel Industry sent a petition to the Cabinet of Ministers. The letter proposes to establish a moratorium on the growth of air fares - at least for 20 days. But experts consider it a voice crying in the wilderness. Firstly, the traditional bureaucratic procedure will not allow us to make it before the summer: in the best case, it will be extended until the winter season. Secondly, the government is now entirely retired, and no one knows where the new one will start.
Exactly the same prospect awaits the complaint of aviators against oil companies.
Exchange Rate Surprises
Surcharge for air tickets is far from the only trouble of the upcoming holiday season. “Anyone who remembers super-cheap vacations ($300-400 a week in Turkey or Egypt) should understand that these prices will not happen again,” the owner of a travel company told The New Times.
Since the beginning of 2008, food prices on the world market have risen by 20%. In most "resort" countries, price tags in restaurants and shops have risen by 30-50%, and, say, in the Indian state of Goa (still recently an "inexpensive" resort) - by 2-2.5 times. In early May, some Turkish tour operators announced the transition to the euro, however, even where dollars are still accepted, the equivalent of prices is still considered in euros. Bulgaria accepts only European currency from this year…
Those wishing to save on vacation are no longer advised to Krasnodar Territory and Crimea. According to RS T experts, price growth at “our” resorts is ahead of foreign indicators and can range from 20 to 40% compared to last year. There is only one way out: save for vacation longer and plan future expenses more carefully.
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1 Kommersant newspaper, May 5, 2008
2 Forecast by Infomost consulting agency.
