As Europe’s travel routes expand, the cost of air travel is projected to continue rising in 2023, with a noticeable impact on holiday plans across the continent.
One traveler from Oviedo, now living in Madrid, complains about the staggering price of a Christmas return flight. “I’ve never seen such an expensive journey home for the holidays. One way exceeds 300 euros,” she notes. She plans to switch to bus travel to stay within budget. In Salamanca, another resident now living in Germany explains they had to secure their Spain-bound Christmas ticket long in advance, paying 180 euros one way. A year ago, the same trip cost 250 euros round trip, a difference he calls excessive.
Family reunions, gift exchanges, and year-end salutations are approaching rapidly. Yet a sizable portion of travelers will trim or cancel their trips. A survey by Appinio shows that 42% of Spaniards expect to sacrifice some travel this season.
Inflation has nudged airline pricing upward. European carriers reported a roughly 35% rise in international flight costs over the past year and as much as 20% on domestic flights, according to Eurostat and the Center for Aviation data compiled by Eurocontrol. Fuel costs have surged, accounting for about a third of airline expenses, a factor cited by Javier Gandara, president of the Airline Association. He notes that fuel is now about twice as costly as last year.
Environmental measures also shape airline economics. The sector has shifted toward more sustainable practices, including fleet upgrades and higher investment in research and development. These costs tend to be passed on to travelers gradually. Ryanair has already signaled higher prices in the coming years, projecting a 25% increase by 2027, and other carriers are following suit. Domestic routes tend to see larger increases than international ones, especially on busy lines. As one observer points out, high-demand routes behave differently from those with lighter demand.
The trajectory suggests little relief next year. The Air Monitor 2023 report indicates modest price increases for travel between European cities, with about 6% for business trips and 5.5% for tourism in 2023.
Alongside fare changes, baggage policies have shifted. Many airlines now require separate purchases for bags, removing them from base fares. This allows airlines to offer lower upfront prices while giving travelers the option to pay only for the luggage they actually need. According to industry leaders, this approach aims to make airline tickets more competitive and flexible for travelers.
Once flights are booked, hotel costs become another consideration. A study by Simon-Kucher & Partners found a typical Christmas stay price rise of around 10% compared with the previous year. Even with tighter wallets, demand for air travel remains resilient, and some travelers still manage to find affordable options. It is noted that a significant share of travelers had already planned trips in November in prior years, reinforcing the pattern of early planning and persistent demand.
Final thoughts
Travelers seeking options will find choices across budgets and tastes. The key to keeping costs manageable lies in early booking and selecting optional services carefully. A snapshot from major comparison platforms during the report period highlighted a Barcelona to London trip with Ryanair priced around 42 euros round trip from late December to early January, though the total expense can rise quickly when baggage fees and other add-ons are included. London remains a popular holiday destination, and Madrid to New York flights can reach higher price points around year-end. A vacation to Seychelles remains dramatically priced, with round-trip fares from Valencia via a mid-distance itinerary listing around 1,650 euros including several stops. The ongoing gap between holiday expectations and real-world costs continues to shape the end-of-year travel planning for many travelers.