On 1 January 2023, we wrote 2023 would be a year of coping with staff shortages and industrial action. While both themes were present in 2023 – and still will be in 2024 – they felt less pressing. Perhaps we learned to live with staff shortages and strikes and not dramatize them (anymore). But it wasn’t the strikes which struck us in 2023. It was the rise of prices. And that’s the theme for 2024.
We love travel, people love to travel. In the overall picture, the share of leisure travel is increasing. Although people work from home more often, they travel more in their free time.
When we we thing of travel costs we think of transportation and accommodation, but while exploring we also spend money. On food and drinks and attractions such as museums.
Flying more expensive
Airfare constitutes a significant portion of travel expenses, and the dynamics of aviation costs vary across continents.
In the United States, there are a few big players: legacy companies American Airlines, United Airlines and Delta Air Lines.
Some further consolidation is taking place JetBlue acquired Spirit while Alaska Airlines wants to swallow up Hawaiian Airlines and of course the ‘low-cost’ airlines Southwest Airlines and Frontier. For Canada, only Air Canada really has international fame, but WestJet is currently undertaking international expansion.
Flying in North America is like taking a bus or train in Europe. Easy to do, but very basic. Anything extra is to pay for.
In Europe, there is more diversity. Sure, Air France–KLM S.A., which comprises Air France and KLM and recently bought SAS, is a big player.
But Europe with its many independent countries has many national airlines, with or without state ownership or support. Since the 1990s, low-cost airlines such as Ryanair, EasyJet and Wizz Air have shaken up the market.
A big difference between Europe and North America is European prices being more susceptible to seasonal differences.
In Asia, the aviation landscape is characterized by a mix of legacy carriers and rapidly expanding low-cost carriers. The growth of budget airlines has made air travel more accessible to a broader demographic, contributing to increased competition and relatively lower base fares. However, fluctuations in fuel prices and the economic stability of individual countries within the region can impact the overall cost of air travel.
Hotel prices
Accommodation costs are pivotal in shaping the financial landscape of travel, and the disparities between continents are noteworthy. North America offers a diverse range of lodging options, from budget motels to luxury hotels, providing travellers with choices that cater to varied budgets. Online booking platforms facilitate access to competitive prices, fostering a consumer-friendly environment.
In North America, the location of the hotel is a big factor. We tend to use public transportation on our vacations, so we need hotels in city centres. While you can find good deals outside those, hotels in city centre can be very expensive for what the hotel offers. That made hotels in Canada so expensive for us, as Danny wrote recently.
In Europe, the picture is nuanced. While budget options and hostels are available, the popularity of certain tourist destinations can lead to increased demand and subsequently higher prices for accommodations. The prevalence of historical and boutique hotels in Europe may contribute to a perception of higher overall costs.
Steve, Philippe, Nicolas and Timothy are travelling to Lisbon in April 2024. Steve had travelled to the capital of Portugal not too long ago, and stayed in a very nice flat via Airbnb. But the daily rate for the week they’re going was over 660 euros per night. Airbnb always adds extra fees such as a cleaning charge, so no. For that price, they could find better. Or find something cheaper. They found a nice flat with two bedrooms and two bathrooms for under 1,000 euros for the whole stay.
Asia, with its dynamic and diverse range of countries, presents a wide spectrum of accommodation options. From ultra-modern hotels in bustling metropolises to traditional guesthouses in serene landscapes, Asia caters to a broad range of budgets. The proliferation of budget accommodations, along with competitive pricing, often makes lodging more affordable for travellers in many Asian countries.
Dining out has become more expensive
The culinary landscape is an integral aspect of travel, and the costs associated with dining out can significantly impact the overall travel budget. In North America, the United States, in particular, is known for its tipping culture, which can add a substantial amount to the final bill. Additionally, tourist-driven areas may witness an adjustment in restaurant prices to cater to the influx of visitors.
We travelled to Canada in June 2023 and tipping culture was as prevalent as in the US. Eating out was expensive, especially in Toronto. Toronto has the reputation of being expensive, even in Canada. Yes, you get huge portions, but what can you do with a doggy bag when being a tourist? Nothing. Canada was three-week trip so it adds up.
In Europe, the diversity of culinary traditions is reflected in varying pricing structures. While some European countries incorporate service charges into the bill, others rely on tipping practices. The presence of Michelin-starred restaurants and gastronomic hotspots in certain European cities can contribute to an overall perception of higher dining costs.
Previously, dining out in Germany was cheap, certainly compared to Belgium. That’s partly because Germans eat out not cook but want the same home-style cuisine, Belgian more often to eat they wouldn’t cook at home. But recently, prices in restaurants have gone up in Germany. Significantly even. Also in France and Spain, restaurants felt more expensive.
Asian eateries
Asia’s culinary landscape is a treasure trove of diverse flavors, often accompanied by affordable price tags. Street food markets and local eateries offer authentic culinary experiences at a fraction of the cost compared to more formal dining establishments. However, high-end dining options in major Asian cities may parallel their counterparts in Europe and North America in terms of pricing.
Oriol and Timothy travelled to Hong Kong and Macau in November 2023. They had great meals for under €10 per person. In Asia, the more shabby a place looks, the better the food it is said.
Cultural sights and attractions
Cultural attractions, museums, and historical sites contribute significantly to the allure of travel. Rising entry fees for these attractions pose challenges for budget-conscious travelers worldwide.
In North America, particularly in the US, national parks may have entrance fees that contribute to the overall cost of experiencing natural wonders. However, many museums operate as non-profit institutions or receive government funding, enabling more accessible pricing.
In Europe, the landscape varies widely. While some cultural sites receive government subsidies, others rely heavily on entrance fees for maintenance and preservation efforts. The demand for access to iconic landmarks, such as the Colosseum in Rome or the Louvre in Paris, often leads to higher entry fees, reflecting the delicate balance between preserving cultural treasures and ensuring accessibility.
In a De Standaard article of 18.12.2023, we read the Louvre is rising its entry fee from €17 to €22 and will allow a maximum of 30,000 visitors per day. People will pay those €5 extra. With the 2024 Summer Olympic Games, Paris will just be even more expensive than usual. Public transport is thinking of raising its fees and hotels are charging up to three times more than in previous summers.
Elsewhere, major museums are also raising their prices. Earlier in 2023, the Palazzo degli Uffizi in Florence (Firenze) raised its ticket prices from €20 to €25 during the high season.
The Metropolitan Museum of Art (MoMA) in New York raised its prices from $25 to $30 in 2022. This trend has been followed by many colleagues over the course of this year.
Both the Whitney Museum of American Art and the Guggenheim Museum followed suit. The Philadelphia Museum of Art and the San Francisco Museum of Modern Art have both started charging $30. The Art Institute of Chicago had the least hesitation: it charges $32.
The New York Times called a $30 ticket “the new normal”. The COVID-19 pandemic aftermath and inflation are the culprits.
In Belgium, museums such as the SMAK in Ghent, the Royal Museums of Fine Arts of Belgium in Brussels and the Groeninge Museum in Bruges charge €15. The Royal Museum of Fine Arts of Antwerp (KMSKA) is one of the most expensive at €20.
Mighty mice
Matt from Matt What Thought brought to our attention the soaring prices of Disney‘s theme parks. A little research lead us to this CNN article and this Spectrum News 1 item. For Disneyland in California, the base price is now $104, but you don’t gat far with that.
“In 2000, a visit to Disneyland cost $41. In 2010, it was $76. In 2024, under Disney’s newly priced tiered structure, a visit to Disneyland could go as high as $194”, SN1 says.
We spoke with our coworker Nico – not the one from the reviews – and he emphasized the $194 is only for the busiest days. Also, a day at Plopsaland in De Panne is €48 for in comparison a small and meh theme park.
We plan to visit Japan and Osaka in 2025. Sam wants to include Universal Studios there and a day ticket is ¥8,600, which is some €55. “Food and drinks are cheap, even for theme parks”, Nico says. He visited in November 2023.
In Asia
Asia’s rich history and cultural heritage offer a plethora of attractions, often at varying price points. Entry fees for historical sites and museums can range from nominal to relatively high, depending on factors such as location, popularity, and government policies.
Some countries actively promote affordable access to cultural attractions to encourage tourism, while others may face challenges in striking a balance between preservation and accessibility.
How to deal with all this?
As travellers confront the reality of escalating travel costs, smart planning and informed choices become imperative.
Booking flights and accommodations well in advance, exploring alternative dining options, and considering off-peak travel times can help mitigate the financial impact.
In contrast: the rise of leisure travellers in business class
With the rise of travel costs not only being limited to transportation and accommodation, you’d expect people to spend less on luxuries. Quod non. Again in De Standaard, we read business class in airplanes is now less ‘business’, but leisure travellers have found their way to to ‘C’ (from commercial; economy is Y, first is F).
Business people tend to hold online meetings much more often now. Climate activists hope this trend will increase, but for airlines, work travel – in business or economy – is an important source of income. Work travellers tend to book later and thus pay more for the same seat.
On the flipside, a company such as Brussels Airlines (SN) does notice an increase of leisure travellers in business class. Almost double compared to the magicak year of year of 2019. Magical because it was pre-COVID. Business class is now very popular on flights from Brussels to Tenerife and Las Palmas de Gran Canaria, while it used to be not the case.
And thus, SN continues to invest in its business class offering, introducing a new menu and a new amenity kit.
But in reality…
Steve and Timothy will cruise with Norwegian Cruise Line in Greece and Turkey, from Athens. They thought of flying business class. It worked out well in April 2023.
Booking business class with Brussels Airlines would have cost about the same amount of money as in April 2023, but the flight times aren’t compatible with our needs. They’ll fly Aegean, in economy. Its business class is too expensive.
The case of ÖBB Nightjet
In December 2023, Austrian federal railway operator ÖBB increased its Nightjet sleeper train offering with trains from Paris and Brussels to Berlin and by introducing brand new sleeper cars. But it also increased its tariffs.
The rates for sleeping and private lounge cars in particular have increased, on average by almost 50%. Anyone who books a luxurious private compartment in the sleeping car at the end of January will even pay 192% more than before the rate change.
The high rates are the result of a new rate system. Where previously a compartment in the Amsterdam – Vienna sleeping car for two people could never be more expensive than €388, this can now rise to €800.
Anyone traveling alone on the night train and wanting their own compartment paid a maximum of €245 until Saturday, or a maximum of €266 if the compartment has its own shower and toilet.
In the new fare system, someone traveling alone in their own compartment pays the same as someone traveling with two people. For example, the costs for a coupe that previously cost a maximum of €245 can now rise to €800, and with a shower and toilet even up to €1,030. That’s just insane!
There’s a caveat though: in the old rate system, compartments were often offered at the maximum rate, but in the new system this rarely happens, only on very popular days. You will often be able to book a coupe for much less than €800.
ÖBB does this because it can. People will perhaps not pay €800, they will book well in advance.
Our plans for 2024
We have some firm and some less firm plans for 2024. Timothy already booked Lisbon and the Mediterranean Sea cruise. He also plans going to South Korea with Oriol and perhaps Ireland with Thanh.
Danny wants to cruise in Norway for the fjords, but depending on our vacation situation that will happen or not. He has some other loose ideas for other travels.
Together we booked flights to New Orleans and New York and an Amtrak train between those two cities. So while Canada was eyewateringly expensive, we are returning to North America. But we have been more sensible in our hotel choices and we found some at very nice rates.
And later in the year we have our sights set on a train trip to Coburg, Weimar and Dessau in Germany.
So yes, a travel year to look forward to. We wish you happy travels and excursions in 2024!
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