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12% last week to $149 a barrel in Europe but remained more than double the price a year ago, with the increase exacerbated by the exchange rate of the dollar which has risen from $1.41 to the pound last May to $1.25 this week. Oil is traded in dollars so


that means added pressure to increase fares. Tui reported a 20% rise in average selling price for the summer this month, driven by extended durations, and insisted the extra margin would cover the fuel price. But easyJet revealed an


operating loss of £17.81 on every seat sold in the six months to March last week, despite a 33% increase in average fares during January to March as sales recovered, and despite the carrier’s hedging meaning it paid less for fuel than a year earlier. Losses through the winter


are normal, but easyJet’s loss per seat in the half year to the end of March 2019 was £5.95 and in the same period to March 2018 it was 43p. Ryanair also reported a


loss of more than €5 on every seat sold in the 12 months to March. Yet it intends to carry more passengers than ever this summer, with capacity at 115% of summer 2019 levels despite the carrier noting “pricing continues to need stimulation”. Ryanair said: “We expect to


fill these flights with lower fares and at higher fuel costs.” The carrier expressed


“cautious optimism” that peak summer 2022 fares “will be somewhat ahead” of 2019, but bargain prices outside the peak will hike the pressures elsewhere in the sector and fares must rise sooner or later or trigger failures.


EasyJet bullish for summer in wake of ‘operational issues’


EasyJet acknowledged “some operational issues” as it reported a pre-tax loss of £557 million for the six months to March but expects to operate 90% of its 2019 capacity between now and June and 97% in the summer peak. Chief executive Johan Lundgren


hailed “a strong recovery in trading” and reported moving 1.5 million


seats “to the best-performing markets” in what he called a “radical reallocation of aircraft” focused on Gatwick and the Greek islands to where “easyJet will now be the largest carrier this summer”. EasyJet capacity in the six


months to September “will be above 2019 levels” on leisure and domestic routes, with leisure capacity at 113% of the 2019 level. However, business and city traffic remain below 2019 levels. Seats for the three months to


June were three-quarters (76%) sold last week, the carrier reported, with bookings in the last 10 weeks


6% above the same period in 2019. EasyJet Holidays capacity was


70% sold for the summer and the operator “on track to carry more than 1.1 million customers” by September, Lundgren said, adding: “We’ve strengthened our operational resilience for this summer.”


Recovery in UK hospitality outpaces Europe in spring


Ian Taylor


The UK continues to lead the hospitality recovery in Europe with hotel data analyst STR reporting the UK was “the strongest market in Europe” in March and April alongside Ireland and major ski regions. UK hotel occupancy had


recovered to 90% of 2019’s level by early May compared to 78% across Europe, according to STR. However, STR managing director Robin Rossmann forecast: “Europe will be the poster child of recovery for the next few months.” He noted weekday demand in


Europe was at 90% of the 2019 level “in the last three weeks” and said: “It’s only group business holding back the recovery. Group demand is about 50% of the 2019 level.” Latest STR data shows the average


daily rate (ADR) of hotel rooms has bounced back strongly, but not yet enough in Europe to outpace inflation.


46 26 MAY 2022


Bournemouth hotels’ ADR was up 169% last year


Rossmann argued: “The biggest


barrier to travel is no longer Covid but cost. There is no doubt there is an economic slowdown, but none of it matters for six to nine months because there is so much pent-up demand.” Average occupancy in the Middle


East had returned to 95% of the 2019 level and the ADR to 140%, while the US was close to 95% occupancy and the US ADR at 112%. But Asia-Pacific remained at 50%


Rossmann reported the ADR in


Europe up 6% on 2019 in early May and the UK’s up 5%, saying: “Rate growth during the week is not great but weekend rates are going up.” However, he said: “There is a lot


of pain still in Germany.” The average daily rate in Spain


was up 14% and in Portugal 18%, with the recovery in ‘real’ ADR – allowing for inflation – “tracking well ahead of previous downturns” in 2001 and 2008-09.


occupancy and China at 40% and Rossmann said: “China is hurting the rest of Asia-Pacific because of its zero-Covid policy and is not going to recover any time soon.” STR data showed six UK regions


made the European top-10 for highest ADR growth last year, with Bournemouth recording the highest growth in Europe (169%), Cornwall and Devon third (162%) and Plymouth fourth (159%). Bath, the Lake District and East and North Yorkshire also made the top 10, with Harrogate, Dorset and Exeter in the top 15.


travelweekly.co.uk


PICTURES: Shutterstock/Andy333, Simone Previdi, Elena Chevalier, SubstanceTproductions


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