Excerpt from Washington Post

Consumers on both sides of the Atlantic are lumbering under the weight of hefty price increases for essential items. Yet, they are still splashing out on fancy vacations.

Many Brits are skiing or visiting sunnier climes this week, as the traditional half-term school break gets under way. That’s great for the battered travel industry, less so for local stores and restaurants that compete for that same pound or dollar.

Airlines, hotels and tour operators were devastated by the pandemic, but since restrictions have eased, demand — and prices — has surged.

TUI AG, the world’s biggest packaged-tour operator, said on Tuesday that bookings for summer were 20% higher than a year ago, with reservations in the last four weeks 50% up on 2022 and 10% above pre-pandemic levels. Prices, excluding 2022 re-bookings, are up 6% for the summer compared with last year. Overall, reservations for the summer season remain 11% behind 2019, but there is still time to make up that shortfall, while pricing is already 24% ahead.

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