Europe faces expensive, chaotic summer

“It looks like chaos,” CNN’s travel experts said of this year’s European summer. Many hotels are raising prices, the dollar is weak against the euro and pound, and crowds are causing noise and overcrowding.

"There were more American visitors to Europe in 2023 than before the pandemic, and even more this year," said Tom Jenkins, CEO of the European Tourism Organization. Kayla Zeigler, owner of the US-based travel company Destination Europe, also said she was sending "record numbers" of customers to Europe this year.

According to Graham Carter, director of tour operator Unforgettable Travel, "many tourists are complaining that traveling to Europe this year is too expensive." Many guests have booked hotel rooms in advance, high room rates, and high demand have pushed up the price of traveling to Europe.

Tourists are at a disadvantage with the euro and pound at a high exchange rate. $100 is now worth 91-92 euros, according to the current average market rate, and the lowest in five years. Last year, $100 was worth 95 euros. Tourists to the UK are also facing a similar situation, with $100 worth 78 pounds, down from 80 pounds at the same time last year.

According to experts, a few cents off the conversion rate doesn’t make much of a difference. But if you add up the total bill for a trip, you’ll see that travel prices this summer are more expensive.

Inflation is rising around the world, and Europe is no exception. The Eiffel Tower is increasing its entrance fee by 20% from June 17. Visitors to Venice during peak season who do not stay overnight in a hotel will have to pay a 5 euro fee. Schengen visas are increasing by 12% from today.

But these fees are considered a drop in the bucket compared to European hotel bills. Hotel Planner CEO Tim Hentschel said room rates are “increasing dramatically.” Many hotels are charging $500 for a room that cost $300 last year.

“When occupancy hits 90%, a $350 room can go for $500,” Hentschel says.

However, not all guests have to pay this $500 price. There are people who can still book rooms for $250 but book early. Guests who book late, close to the travel date have to pay the high fee.

Data from Hotel Monitor, a global hotel price analysis by American Express Global Business Travel, predicts that many major European cities will see room rates rise by 10% this year. Paris, Amsterdam and Dublin are all forecast to be 10-11% higher. Berlin, Stockholm, Barcelona and London are all forecast to see increases of more than 9%.

Hentschel said that to get a good price, guests should book early, reduce the star rating from 4-5 stars to 1-2 star hotels. Instead of choosing a room in the city center, guests can look for hotels further away. In London, a 5-star hotel costs 1,000 GBP (1,270 USD), if going outside the M25 (London's outer ring road), 3-4 star hotels cost around 100 GBP (127 USD). Guests can stay overnight in the suburbs and take the train into the city center to visit.

“You’ll get the same Instagram sunset photos for a tenth of the price,” says Hentschel.

Hotel room prices are high but Airfares to Europe are falling. Hayley Berg, chief economist at Hopper, said airfares from the US to Europe are trending lower, with an average drop of 16% compared to the same period last year. Hopper data shows that round-trip flights from the US to London, UK have fallen 21% since June compared to the same period last year. Top European destinations such as Rome, Barcelona, ​​Athens, Paris have all seen double-digit drops, of 34%, 37%, 28% and 38% for fares in June, July and August, respectively. Fares are higher than in 2019 but are considered "in line" with 2017-2018 prices.

Crowds are also a problem mentioned when talking about the peak summer tourist season. The number of visitors to Europe this year has increased dramatically. However, Carter pointed out that customers are trying to avoid July and August because of the crowds and heat. They are choosing May, June, and September more and avoiding hot spots like Venice, Rome, and Florence. But even in the less peak months, this year's crowds "are still a concern," according to Carter.

In 2023, Italy will welcome 134 million visitors, a record high. Fifty percent of them will be international. In 2024, the number is expected to be even higher, according to Tourism Minister Daniela Santanche. The minister said visitors booking tickets to any popular destination this year should check before they go to avoid crowds and book accommodations away from prime locations.

Carter is sending clients to more rural areas than cities in Europe, like Puglia and Sicily, or advising them to go to new countries like Slovenia instead of Italy; Croatia instead of Greece.

France is also a destination Carter recommends this year. Despite hosting the Olympics and hotel rates in Paris expected to rise 11% during the Games, they have only risen 8% so far. Airfares to Paris from many global destinations are down 38%, which is also a plus.

“Tourism is at a historic high, inflation is also high,” Hentschel said. Zeigler pointed out that customers are paying 30% more than they did in the same period in 2019.

Experts say travelers looking for a budget trip to Europe should book early, as things are selling out fast. "Prices will only go up," says Hayley Berg of Hopper. For those booking closer to the moment, consider alternative destinations and accommodations, and opt for three- or four-star hotels instead of five-star ones.