Wednesday, 21 December 2016

New Year - new low cost flights

Airlines continue to plan new low cost routes from the UK despite the fall in the value of the £ since the Brexit referendum. Here's a round up. With more are flights being announced pretty well every week, I can't pretend the list is comprehensive.

Remote Quebec province - new Montreal flights
Norwegian is shrugging off concerns that the current weakness of sterling will deter Britons from travelling to the US, upping significantly the number of transatlantic flights it operates from Gatwick. Los Angeles flights will depart daily from 15 April – up from five a week. Flights to both Fort Lauderdale and Orlando will increase two to three a week – from April 17 and 20 respectively. Oakland services will increase from three to five a week from April18. And starting on August 10 the airline will double its departures to New York - except on Wednesdays when there will be only one.

Iceland’s WOW will start flying between Reykjavik and Pittsburgh, Pennsylvania next summer, with connecting flights from Gatwick and Edinburgh. From June 16 the budget airline will operate four round trips a week on the route, on Mondays, Wednesdays, Fridays and Sundays. It says the approximate total journey time, including the stop in Reykjavik, will be eleven hours.

With the Canada expected to draw more British holiday travellers away from the US WOW is to up the frequency of flights from Reykjavik to Toronto and Montreal from four a week to daily. Its increased service will start on May 1 to Toronto and June 13 to Montreal.

New budget flights from Gatwick to Barbados will start in winter next year. Thomas Cook Airlines is to start its first seat only service to the Barbados next winter. Flights by Airbus A330 aircraft will operate between December 16 and March 17 (2018). 

easyJet will fly twice a week from Luton twice a week to Biarritz in south west France and Rhodes next summer and four times a week to Stockholm. Starting on various dates from May onwards it will also operate from Manchester to Preveza in Greece, Granada and Dubrovnik. And on April 27 it will start flying from Southend to Murcia in southern Spain.

Competition between low cost airlines at Stansted will heat up next summer when Jet2 launches flights from the airport for the first time. The airline will operate to a total of 25 European destinations – among them Madeira, Faro, Tenerife, Lanzarote, Funeteventura, Gran Canaria, Mallorca, Menorca, Ibiza, Girona, Alicante, Malaga, Pula and Dubrovnik in Croatia, Zante, Kos, Crete. The airline will also begin operating from Birmingham airport next summer – with services to 15 of the destinations planned from Stansted. They include the four Canary Islands, the Balearics, the Algarve, Crete and Paphos.

Oslo: Ryanair will fly there in summer (Image shows Ola Enstad's divers installation

Ryanair continues to expand its services. The number of summer departures from Manchester to ten destinations – including Mallorca, Tenerife (South) and Faro – will increase next year, while winter flights to Berlin, Hamburg, Nuremberg, Wroclaw in Poland and Oslo’s Torp airport will now operate year round. From spring the low cost carrier will start operating from Liverpool to Bari in southern Italy, Barcelona (Girona) and Prague, fly year round to Marrakech and Sofia instead of just in winter and up the frequency of departures to Alicante, Faro and Gran Canaria. The airline has also announced big increases in services from Scotland starting next spring, with new flights from Edinburgh and Glasgow. It will fly from both to Barcelona (Girona), from the former to, Ibiza, Milan, Porto and Vigo and the latter to Lisbon, the Lithuanian Baltic resort of Palanga, Valencia and Zadar in Croatia. Also next spring it will begin flying from Stansted to Strasbourg and Luton to Faro. And Ryanair will start flying again from Aberdeen, with flights to Alicante and Malaga starting on February 17.

Romanian low cost airline Blue Air will launch flights from Liverpool to Rome, Milan (Bergamo) and Hamburg and Alicante. The services will take off at the start of next year’s summer timetable. The airline, which will now base an aircraft at the airport, started operating there two years ago with fights to Bucharest. This year it has added two other Romanian destinations: Bacau and Cluj-Napoca. It will also launch a new service from Birmingham to Cyprus next spring flying three round trips a week to Larnaca.

Friday, 16 December 2016

Holiday surcharges - how big a threat?

Ski holiday surcharges - will they spread?
How serious is the threat that Britons who have booked holidays overseas may face demands for extra payments? Ski and snowboard holiday operator Mark Warner is reported to be surcharging customers as a result of the weakness of sterling in the wake of the Brexit referendum. Several other companies - not necessarily wintersports specialists - are understood to be planning similar action. Why? Many operators bought all or some of their foreign currency needs on the forward market before the Brexit referendum, so they could set firm prices for an agreed period ahead. But they don’t all take that precaution. In the immediate aftermath of the referendum reliable travel industry sources even suggested some might have gambled that a remain vote would strengthen the £, rendering such housekeeping unnecessary. The Package Travel Act, a Brussels directive enacted in UK law, allows operators surcharge for any additional currency exchange or fuel costs, or unforeseen taxes. But they must absorb those costs up to 2% of the holiday price and offer free cancellation – and a refund of money paid - if the surcharge exceeds 10%. The size of a surcharge depends on the exchange rates at which they set the holiday price and the proportion of the package price costed in foreign currency. So the more expensive the accommodation, for example, the bigger the surcharge is likely to be. Of course, tour operators have had five months since the referendum in which to adjust the price of new bookings to its impact. But there’s a limit to the frequency with which they can reasonably do that – and it must be noted that the £ has recovered somewhat from its post vote nadir. In summary it would not be surprising if more firms imposed surcharges – but a more acute problem will emerge when existing forward buying contracts run out. One major ski operator, which does hedge its currency needs, has already indicated next season’s package prices will rise by 5 – 6% - and that’s after strenuous efforts to cushion the impact. Anyone planning a foreign holiday better hope the compass swings dramatically towards a soft Brexit or a very protracted extrication – and maybe that inflation prompts a rise in interest rates. Either or both should see sterling edge a little closer to its pre-vote value.