Jet2 says sun-seekers are prioritising holidays despite cost-of-living pressures
Travel group Jet2 has seen a surge in demand for package holidays.
The company revealed that despite the rising cost of living, people want "time away from our rainy island". The firm's profits for the year are expected to exceed previous predictions, with winter bookings up by 17% compared to last year.
This is due to an increase in seat capacity across flights. Package holidays for the upcoming summer have also seen a 17% rise compared to the same period last year.
These deals, which include flights, accommodation, baggage and transfers, typically bring in more revenue per booking for travel companies. However, Jet2 warned that prices for its summer holidays this year are currently higher than last year.
This is due to increased costs for the business, including hotel accommodation and EU climate policy impacts. Despite these challenges, the company reported strong bookings, with customers prioritising their "hard-earned holidays remaining a priority".
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However, they remain aware that tougher economic conditions could affect consumer spending levels. Rival holiday group Tui has also previously emphasised that people are willing to prioritise spending on travel and experiences.
Steve Heapy, Jet2’s chief executive, said: “We are pleased with how the 2024 financial year is ending and are encouraged by early bookings for summer 2024. Whilst recognising that there are many demands on consumer discretionary incomes, we believe that our customers cherish their time away from our rainy island and want to be properly looked after throughout their holiday experience.”
He added that the “sun spots” of the Mediterranean, the Canary Islands, and European cities remain popular with holiday-goers. Jet2 said it had slightly raised its expectations for pre-tax profit for the year to the end of March, from between £480 million and £520 million, to between £510 million and £525 million. It is set to report results in July.
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