Holiday Euro 2022 worth on average 18 per cent more than at home
- The decline in the value of the holiday euro abroad compared to 2021 is due to slightly higher inflation in Austria and partly to the depreciation of the euro
- Overseas destinations tended to become more expensive compared to 2021 with few exceptions
- Hungary, Turkey and Croatia still at the top of the list of top destinations
- Holiday euro worth less in the UK and the US due to the weaker euro
- Switzerland remains one of the most expensive holiday destinations
- Turkey has become more expensive compared to 2021
For summer holidays in 2022, the purchasing power of the euro, i.e. the holiday euro, is likely to play less of a role than considerations around the development of the pandemic and around the current geopolitical crises combined with strong inflation and sharply increased energy prices. On average, the holiday euro abroad in 2022 is 18 per cent higher than its value at home. "As a tendency, European destinations in 2022 have remained more or less the same compared to 2021, while overseas destinations have become more expensive on average," Stefan Bruckbauer, Chief Economist of UniCredit Bank Austria, analyses the current calculation of the holiday euro and adds: "In Turkey, however, where the holiday euro was worth the most in the past, you get less this year than in the previous year due to high inflation. "
In an overall view, there has been a reduction in the holiday euro compared to summer 2021, because in many important holiday destinations of Austrians the price increase was about the same as in Austria, but the devaluation of the euro especially against overseas destinations is noticeable in a reduction of the holiday euro abroad. "The holiday euro abroad has lost value due to the devaluation of the euro and thus, despite increased prices, the holiday euro at home has become relatively worth more," Stefan Bruckbauer summarises the situation in summer 2022.
Holidays in Hungary, Turkey and Croatia still significantly cheaper than at home
Among the most important holiday destinations for Austrians, one continues to get the most for one's holiday Euro in Turkey, Hungary and Croatia. Among the most popular holiday destinations, holidaymakers from Austria can also expect to get more for their holiday euro in Portugal, Greece, Slovenia and Spain than at home. "In the holiday destinations that are particularly popular for city breaks, holidaymakers from Austria are likely to face a higher price level this year than at home, for example in the United Kingdom, France, Sweden and the USA," says Bruckbauer. In many countries of Eastern and South-Eastern Europe, the holiday euro is still worth considerably more than in Austria, especially in Bulgaria, Romania and Poland.
Overseas 2022 on average about 5 per cent more expensive compared to 2021
Overseas, besides the different price development, the exchange rate development also plays a role in the value comparison for the holiday euro. "Based on the holiday behaviour before the pandemic, there was a decline in the holiday Euro in overseas destinations. In addition to the weaker euro, higher price increases were also responsible for this," says Bruckbauer.
Switzerland is the most expensive holiday destination
Due to the appreciation of the Swiss franc since 2021, the low inflation in Switzerland did not lead to a higher value of the holiday euro compared to 2021, thus Switzerland remains clearly the most expensive holiday destination for Austrians among the popular holiday destinations. "Despite low inflation in recent years, the appreciation in Switzerland continues to ensure that the holiday euro there is around ¾ of the value in Austria, which corresponds to its long-term average," says Bruckbauer and adds: "Never since there have been value comparisons has the holiday euro been worth more in Switzerland than in Austria. "
Finally, the economists of UniCredit Bank Austria point out that the calculation of the holiday euro does not in any way encourage a holiday trip abroad and that the value of the holiday euro should hardly play a role in comparison to health aspects. Furthermore, they point out that these are average values, individual regions (such as London as a central region) may deviate from them.
The price level refers to the average of goods and services in the individual countries, individual products (especially for tourists) can deviate significantly from this. Therefore, no value was given for the long-distance destinations either, only its change. Moreover, the fact that the price level in some holiday countries is so much cheaper than in Austria is mainly due to the high income level in Austria. If Austria's price level were lower, the income level would also be lower and holidays would be difficult to afford.
Enquiries
UniCredit Bank Austria Economics and Market Analysis Austria
Stefan Bruckbauer, Tel. +43 (0)5 05 05-41951;
E-mail: stefan.bruckbauer@unicreditgroup.at
UniCredit Bank Austria Media Relations
Matthias Raftl, Tel. +43 (0)5 05 05-52809;
E-mail: matthias.raftl@unicreditgroup.at
