WHY do "peak dates" (usually school holidays or bank holidays!) cost MORE than other dates through the season? Why CAN'T prices be the same all year round for holidays?....
The answer is a simple "supply and demand" rule!
If the demand for goods or services goes up, and its "supply" can't match it:- then prices go up.
If supply increases, and demand doesn’t:- prices go down.
It’s really not not brain surgery to understand and it explains just about everything about our world today: it is the reason why some takeaways charge less on Monday or Tuesday nights, why champagne costs more than water and why people with a PhD in physics earn more than people with no qualifications.
So for holidays:
It is more expensive to travel at peak times, when everybody else also wants to go on holiday, in comparison with during the low season, when children are at school and employees at work and the "demand" for holidays decreases.....
To those who understand how the world works: that makes perfect sense and is the sign of a system that is working. It ensures an efficient allocation of resources, with relevant pricing encouraging people who don’t have to travel during school holidays to wait until a less busy period.
Yet many people are "shocked" and object to this. To them, it is a disgrace and an obvious case of profiteering; some even believe it to be a giant conspiracy between the holiday companies.
Think about it!
What are holiday providers meant to do when demand shoots up?
- Keep prices constant through the year?
- Reduce them?
If holiday providers did this: given the collapse in revenues, they would all have to increase prices during the rest of the year, when fewer people want to travel, to try to remain afloat financially.....
That would mean emptier properties for most of the year and a decline in the total number of annual travellers, as 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 most holiday providers, and especially private rentals with the amount of annual costs involved to run just one Holiday Home. Competition would be reduced, prices would rise and choice would be restricted.
Some holiday-issues could be alleviated if schools varied term dates, but families often have children in different schools, so this isn’t always practical.
We would all like cheaper prices all of the time. But in reality: holidays will always cost more when most people want to take them! It’s a simple fact that needs to be understood and sadly, isn't!
Please don't follow the very "misguided" thought that if you leave it to the "last-minute" to book: you will grab a "great, reduced bargain holiday"... In reality:- your choice is reduced and as demand is high and supply is low, you will most probably end up spending more on your summer holiday than you would have done had you booked it 6-months previous, if you leave it until a few weeks before arrival to book it, or possibly no holiday at all - as all peak dates are "booked"!