Price Stability and Political Influence
Tourism giant TUI’s German CEO, Benjamin Jacobi, anticipates only modest price increases for the summer travel season of 2026, signaling a potential stabilization in the sector after periods of dramatic inflation.. Jacobi’s statements, published in the Funke-Mediengruppe newspapers, suggest that the cost of vacations is unlikely to surge significantly beyond 2025 levels, estimating an inflation-driven increase of just one to three percent.
This projection, however, belies a more complex shift in travel patterns and highlights the increasing role of political factors in destination choices and pricing. While traditionally perceived as premium destinations, locations like Santorini and Rhodes are, according to Jacobi, poised to become relatively more affordable. This shift represents a corrective measure, rebalancing cost structures in regions previously priced beyond the reach of many budget-conscious travelers.
The potential windfalls of a planned reduction in aviation taxes, scheduled to take effect in July 2026, are expected to be passed directly onto consumers, a move Jacobi labelled “a politically important first step”. While the impact of an eight-euro reduction per flight may seem negligible to high-end travelers, Jacobi underscored its significance for families, emphasizing its potential to fund experiences, illustrating the political sensitivity surrounding travel affordability.
Jacobi’s advice for budget-conscious travelers extends beyond destination choice, urging early booking to avoid the last-minute deals which characterized 2023. He cautions that the trend of hotels aggressively discounting at the eleventh hour is unlikely to persist, emphasizing the importance of proactive planning. Furthermore, he recommends exploring departure locations with varying school vacation schedules, where potentially significant savings – hundreds of euros – can be realized, supplemented by TUI’s inclusive rail tickets.
Beyond pricing trends, the evolving landscape of preferred destinations is also notable. Greece has reportedly overtaken both Spain and Turkey as the most popular vacation choice amongst German travelers, mirroring a broader trend of prioritizing cultural richness and relative affordability. Interestingly, despite ongoing geopolitical tension and the political climate surrounding US President Donald Trump, the United States retain their popularity for longer-haul travel, demonstrating the enduring appeal of American tourism. This continued demand underscores the complex interplay of political considerations and consumer preferences in shaping future travel choices and the inherent challenges in predicting sector trends.