A VERY frequent question asked by hoards of Holiday-Makers!
The answer is simply:- "Supply and demand" which may seem like a bit of an antiquated phrase, but is 100% applicable when it comes to WHY ALL Holiday Companies (and most private Owners) charge more for what is classed as "peak dates" (generally peak dates are school holidays or bank holidays.)
It really is quite an obvious "fact of life" to understand, but sadly some still seem a tad baffled as to why they should pay more for a holiday in the middle of August, than they do in March or October.....
- If the demand for goods or a service goes up, and its supply doesn’t increase as much, then prices go up.
- If supply increases, and demand doesn’t, prices go down.
It’s not difficult to understand and applies to just about everything in our world today; it's the reason why some takeaways charge less on Monday nights, why champagne costs more than water, why a night at the Hilton will cost you more than a night in a Travelodge and why a qualified brain surgeon will earn more than a person with no qualifications...
It's more expensive to take a holiday at peak times, when everybody else also wants to go on holiday, than it is during the low season, when children are at school and employees at work. This actually ensures an efficient allocation of resources, whilst giving the incentive to people who don’t have or need to travel during school holidays to wait until a less busy period... effectively "spreading" the holiday industry over the entire year.
But many are shocked by this and take the view that to charge more for the same Holiday Home, package holiday or flight during peak dates is "disgraceful" and just an "obvious profit-making" exersize
So - what should the holiday providers do when the demand increases ie: peak dates?
Keep prices constant throughout the year?
Reduce all prices throughout the year, driving the holiday consumers into a frenzy?
If this were to be done, given the the collapse in revenues, the pricing would then have to increase during the rest of the year, when fewer people want to travel.
That in turn would result in emptier Holiday Homes, hotels and airlines for most of the year and a decline in the total number of annual travellers (the same number would go on holiday, albeit more cheaply, during sold-out peak times, while fewer would do so during the rest of the year).
This would be followed by the mass bankruptcy of private Owners, travel companies, hotels and even airlines.
Competition would be reduced, prices would rise and choice would be restricted....
We would all like cheaper prices all of the time. Travelling will always cost more when most people want to go on holiday, just the same as the cost of bread will rise if there is a shortage of flour!
Unfortunately - this is just a fact of life and needs to just be "accepted."
So, be "sensible" when looking for your next break away... plan in advance and budget for your holiday costs. The majority of private Owners will offer some sort of payment plan, so the overall cost doesn't have to be found in "one hit"... if you are hoping to pick up a "last minute deal" at £150 for a week in August - you will be sorely disappointed!
It's often forgotten that a great deal of Owners actually use the Holiday Homes themselves - so if they do have "peak dates" available that can't be sold at the "required rate" on offer - they will look to using the property themselves... so an "unsold" peak date is never going to be reduced to a "silly price!"
Also be aware, that if you are offered a ridiculously "cheap" holiday in peak season, you are at risk of booking with a scammer!
All ETK Owners are happy to accept advance bookings - so take a scroll through the listings and plan ahead for your 2017 holiday - which will give you an entire year to complete the payment, without blowing your budget!