Summer holiday in times of economic slowdown

An average economy class Lagos-London return ticket cost between $850 and $1,335

…high exchange rate causes setback

…accommodation cost in Europe in all-time high

It is summer once again, but many Nigerian wanderlusts are not fast in packing their luggage to jet out for a dream holiday abroad.

While that maybe unusual in a country where outbound travels is a fad and a status symbol, it is also a reality occasioned by the prevalent economic adversity.

The unstable and unimaginably high foreign exchange has made it impossible for many to travel for summer holidays this year, leaving only those with very deep pockets to do so, as borrowing to nurse such ostentatious passion is no longer realistic today.

With the Naira depreciating in value, almost every day, against major global currencies, the Nigerian travelling public is holding back.

As at today, the Naira exchanges for N1,500/$ and above, requiring would-be holidaymakers to spend more than their budget in order to travel, while those with lean pocket shy away.
“Now, I realise how bad our economy is. My agent is demanding N8million for a family of four for two weeks summer in London, inclusive of flight and accommodation. He insisted that I should pay immediately in May when I made the bookings as price changes every day due to unstable exchange rate. I paid additional N850,000 in price increase for paying a week after,” Ademola Onikeku, a corporate executive, said.

He further decried that the Naira is seriously weeping against Dollar and Pound, the two currencies holidaymakers need the most for travels, hence, the instability makes it difficult for short-term holiday planning and also requires adjustments that pinch the pocket even after long-term planning.

Moreover, the situation is worsened by the fact that there are no cheap airfares again, while hotel accommodation is usually very high during summer as hoteliers see the period as peak season for their business.

As at today, the cheapest flight on the Lagos-London route is N1,800,000 (One million eight hundred Naira depending on the airline), with travel agents warning that airfares will increase further for summer holiday.

Some airlines charge as high as N2.5 million for a return ticket, amid fear of others going for N3 million on the route.

The US, Canada and Caribbean Islands routes are farther and more expensive, leaving would-be holidaymakers almost breaking the bank to nurture their wanderlust cravings.

“The fares are not too expensive as we think. It is just because the Naira keeps depreciating in value every day. If we have a strong Naira, like N500 to $1, most travellers will not complain.

“The government should get serious with measures that will strengthen the Naira, else the woes will continue and even get worse next summer,” Diamond Ekoi, a travel agent, explained.

Further blaming the high cost of summer on currency volatility, Ekoi lamented that an economy return ticket he got for a client at N1,807,063 last month is now N2,454,896.
“When my clients book tickets on hold, I always tell them that the prices quoted can change anytime and are subject to availability, especially for summer.

“So, I don’t ask them to send their passport data page for booking again, but money to authenticate the bookings because airlines are cashing out this period.

“There are no cheap tickets for summer, the ones available now are for the highest bidders because we have entered the peak of the season,” Ekoi said.

Apart from airfares, Pascal Obidiegwu, a tour operator, said that accommodation is quite high in foreign destinations this summer, with some hotels requiring would-be guests to pay ahead of their stay instead of saying they are overbooked.

“An average standard room in any European city goes from $150, while those in resorts go from $300. So, imagine how expensive the executive rooms and suites will be. If you consider the exchange rate and the number of days you are going to stay in such hotels, especially as family, you will realise the huge sum that will amount to.
“So, accommodation is no longer cheap in Europe for summer, especially because of the Olympics in France this period.

“European cities are connected for easy movement and hoteliers know that guests will take advantage of this, especially for the Olympics.

“So, rates are very high now until the Olympics ends and later in the year, when winter sets in,” Obidiegwu said.

Also, due to the rising inflation across the world, Bunmi Fadahunsi, a tour broker, with expansive foreign partnerships, noted that rates for normal tours, city breaks, cinema tickets, live performances, hiking and other leisure activities have increased, with additional financial burden on visitors.

From cinema ticket, city tours to museums pass, visitors pay more now while on summer rest.
“You cannot travel for summer to just sleep in your hotel room, you need complementary activities, which are not cheap again. Even, many hotels in London, Paris and Barcelona do not offer complimentary breakfast again. You pay for extra water and for room service. I always caution my clients to be conscious of hidden charges, they are there, hidden, and are awaiting for the clueless guests and that is why you must research your destinations, hotels and flights before you book them,” Fadahunsi said.

But while the rates are increasing daily and frustrating many would-be summer holidaymakers from fulfilling their cravings, some are finding a way around it.

According to Fadahunsi, many now struggle for flight tickets, and split their accommodation across some days; staying some days with family members and friends and others in cheaper hotels.

“That was an option one of my clients proposed last year and it worked perfectly for his family. I only got his return tickets and he sorted the rest in his own ingenious way.