Increase in prices of tickets and tourist packages have not yet reached the ceiling

The last months, the economic slowdown, high rates, inflation and the devaluation of the Colombian peso have taken their toll on the tourism sector, an industry that was growing and standing out as one of the lines with the greatest recovery from the pre-pandemic.

(See: In February income from tourism rose 12%).

And it is that after several setbacks, by the third month of the year the sector began to see a dynamic of economic slowdown, especially due to the increase in prices.

According to the most recent Consumer Price Index (CPI) According to the National Administrative Department of Statistics (Dane), one of the items in this industry that has risen the most is the price of tourist packages, which increased 20.5% annually and 1.8% monthly.

“Despite having had a good start, the air situation caused a contraction in the commercialization of products and services in high season, if compared to the same season of 2022, and to this is added the rise in prices related to tourist services.”, explained Paula Cortés Calle, executive president of the Colombian Association of Travel and Tourism Agencies (Anato).

(See: ‘High costs in tourist services do not give up’: Anato).

In addition, for the association this increase in the prices of tourist services is worrying because paints a picture of uncertainty for the future.

This “discourages demand for tourism products and services”, affecting the income of companies that, in the case of travel agencies, have had to increase their prices, since their service providers accommodation and air transport have had to do it.

Especially the latter has significantly increased prices to March, this is due to the departure of two important low cost players from the air market, Viva and Ultra Air, which represented more than 25% of the offer, generating an air crisis that, added to macroeconomic factors, has increased ticket fares considerably.

According to the CPI, the line of passenger transport and airplane luggage shows an annual variation for March of 39.6%, this despite the slight monthly decrease of 0.4%. Among the reasons, Thomas Allier, co-founder and president of the Viajala ticket search engine, points out that macroeconomic conditions began to hit the cost structure of many of the airlines, especially those that have their costs in dollars and with the devaluation of the peso, life has become very complicated for these companies, which has caused some companies to close as Viva or Ultra Air.

“Added to this is the rise in the price of fuel and rates have begun to rise. Much of the increase in costs is being borne by the traveler“, said.

(See: Cotelco remains: hotel occupancy at Easter fell).

According to data from the Civil Aeronautics, the value of jet fuel has risen more than 40% and It has increased its weight in the cost basket from 32% to more than 45%.

Faced with this dynamic, inter-municipal transport regained its preference in Colombian families when traveling.

According to the Ministry of Commerce, Industry and Tourism, in the case of Easter this dynamic increased demand by 3% compared to 2022. Days before, according to Dane, this category presented increases in its annual prices of 12% and 4.1% per month.

In addition to transportation, the prices of food services outside the home increased by 20.8%.

And it is that although this rise is marked by the increase in the price of food (moderate rise in recent months), the increase in the minimum wage and rental fees, It has impacted the finances of restaurants.

(See: Tourism at Easter increased slightly, according to the Government).

The rates of hotels, hostels, cabins, rental housing and any type of accommodation presented a significant increase in the month of March of 1.7% per month and 18.5% per year (compared to the same month of 2022).

According to businessmen in the sector, in their business model, payroll costs have the greatest weight in the cost basket, in addition, with the high turnover of personnel and available vacancies, it has become a challenge, among others, to retain personnel , so it is increasingly expensive to use.

PAULA GALEANO BALAGUERA
Journalist Portfolio