Holiday Euro worth 20 per cent more on average in 2024 than at home
- 30 per cent more value in Croatia, Turkey, Greece, Spain and Portugal compared to Austria
- In Germany, the host country of the European Football Championship, the euro of Austrian football fans is also worth more, at least on average: 100 euros in Germany is equivalent to 108 euros
- Overseas destinations became 11 per cent cheaper on average due to the stronger euro, despite higher inflation in some of these countries
- Among the top destinations, Hungary offers the best value for money in the holiday euro, although Hungary and Turkey have become noticeably more expensive compared to 2023
- Holiday euro worth more again in the UK and the USA than in 2023 due to the stronger euro
- Switzerland remains one of the most expensive holiday destinations
The purchasing power of the euro, i.e. the holiday euro, has once again become an important indicator for summer holidays in 2024. In addition to considerations relating to the current geopolitical crises combined with high inflation and a sharp rise in energy prices, the value of the holiday euro plays an important role in deciding where to go on holiday. On average, the holiday euro abroad in 2024 is 20 per cent higher than its value at home, although it is generally worth around two per cent less than in 2023 due to high inflation in some major European holiday destinations compared to Austria.
“In 2024, the holiday euro in the popular holiday destinations of Croatia, Turkey, Greece, Spain and Portugal will be worth around 30 per cent more than in Austria. However, compared to 2023, European destinations will tend to be slightly more expensive in 2024 in comparison to Austria, despite high domestic inflation, and overseas destinations will be significantly cheaper”, says Stefan Bruckbauer, Chief Economist at UniCredit Bank Austria, analyzing the current calculation of the holiday euro and adds: “In Turkey and Hungary, however, where the holiday euro was worth the most in the past, you get significantly less this year than last year due to high inflation, yet Hungary remains the country where the holiday euro is worth the most among the most popular holiday destinations.”
Holidays in Hungary, Turkey and Croatia, as well as Greece, Spain and Portugal, are significantly cheaper than at home
In Croatia, Turkey, Greece, Spain and Portugal, Austrian holidaymakers receive around 30 per cent more than in Austria. “Especially in countries in the south of Europe, such as Greece and Spain, the value of the Austrian holiday euro has increased in recent years compared to regions such as Turkey, Croatia and Hungary, which were particularly cheap in the past”, analyses Bruckbauer. “In holiday destinations that are particularly popular for city breaks, holidaymakers from Austria are likely to be faced with a similar price level to Austria for the first time again this year, for example in the United Kingdom, France and the USA, the difference has narrowed further compared to the previous year”, says Bruckbauer.
Even in Germany, the host country of the European Football Championship, which starts shortly, it is cheaper for the Austrian fans of our national team than in Austria: 100 euros are worth 108 euros in Germany, at least on average, perhaps not necessarily in and around the stadium. In many countries in Eastern and South-Eastern Europe, the holiday euro is still worth significantly more than in Austria, especially in Bulgaria, Romania and Poland, although the value in the latter two countries has fallen slightly compared to the previous year.
Overseas 2024 on average around 11 per cent cheaper compared to 2023
Overseas, in addition to the different price trends, exchange rate trends also play a role when comparing the value of the holiday euro. “Based on holiday behaviour, there was another significant increase in the holiday euro in overseas destinations, as in 2023. The stronger euro was solely responsible for this, with price increases in many of these countries exceeding those in Austria”, says Bruckbauer.
Switzerland is the most expensive holiday destination
Despite persistently significantly lower inflation in Switzerland than in Austria, the recent rise of the Swiss franc against the euro has once again reduced the value of the holiday euro in Switzerland by around 4 per cent, meaning that Switzerland remains 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 only worth around two thirds of its value in Austria, which corresponds to its long-term average”, says Bruckbauer, adding: “Never before since value comparisons have been made has the holiday euro been worth more in Switzerland than in Austria.”
Finally, the economists at UniCredit Bank Austria point out that the calculation of the holiday euro is not an incentive to go on holiday abroad and that the value of the holiday euro should play a subordinate role compared to security aspects. They also point out that these are average values; individual regions (such as London as a central region or coastal regions) may differ. 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. For this reason, no value was given for the long-distance destinations, but only the change. In addition, the fact that the price level in some holiday destinations is so much more favourable than in Austria is primarily due to the high income level in Austria. If Austria's price level were lower, income levels 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
