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Holidays in Italy will cost more this summer, consumer watchdog warns

The price of flights, hotels, sun loungers and meals out are all set to rise this summer, Italy's consumer watchdog has warned, as businesses seek to cover losses and extra Covid costs.

Holidays in Italy will cost more this summer, consumer watchdog warns
Beachgoers in Sardinia, one of Italy's most popular summer destinations. Photo: Andreas SOLARO / AFP

“Everything will cost more this summer,” according to consumer association Codacons, which says it has been monitoring prices from petrol to ice cream.

“The picture that emerges is of a summer in which holidays cost significantly more than in 2020,” it says.

READ ALSO: What is Italy’s Covid-19 digital ‘green pass’ used for and how do you get it?

Italy’s tourism industry has been badly hit by 18 months of travel restrictions, and as it prepares to welcome back visitors from across the EU and North America this summer, businesses are still facing the additional costs of extra cleaning, getting up to code with safety precautions, and limits on capacity.

According to Codacons, at least part of those costs will be passed on to holidaymakers.

Bars and restaurants are raising their prices by around 5 to 10 percent compared to last summer, the association reports, while the charge to rent a sun lounger or umbrella on Italian beaches has increased by 5 percent on average – and as much as 40 percent in tourist hotspots on the Amalfi Coast.

Separate research by consumer study institute IRCAF recently found that June 2021 prices for two loungers and an umbrella ranged from €10 per day on some Italian beaches to a whopping €50 on others.

Across Italy prices have increased by around 4 percent on average for daily beach rentals and nearly 14 percent for weekly ones compared to the same month last year, IRCAF said.

Photo by Filippo MONTEFORTE / AFP

Meanwhile hotels and other accommodation are not only charging higher rates, according to Codacons, but adding fees for flexible booking options, as holidaymakers worry they’ll have to cancel or postpone amid rapidly changing travel rules.

Airlines are using the same tactic, it says, with both regular and low-cost carriers cashing in on extra demand for refundable tickets, travel insurance and spaced-out seating.

Train fares have not gone up, but restrictions on how many seats can be filled mean that fewer promotions or discounts are on offer, the association says. 

And filling up your car costs around 16 percent more than last year thanks to fuel price increases, with a full tank estimated to cost an extra €11 each time.

Car rentals were not included in Codacon’s study, but anecdotal reports from consumers suggest that some companies have been charging more to reflect the cost of deep cleaning vehicles.

READ ALSO:

Factoring in travel, meals and accommodation, Codacons estimates that ten days’ holiday in an Italian resort (villeggiatura) will cost around almost €100 more per person in 2021 than it did in 2020: €996 compared to €898.

Summer is typically the most expensive time to vacation in Italy in any year, with airlines, hotels, car rental companies and lidos hiking their prices during the peak school holiday period from late June to August.

No doubt the picture varies widely across Italy, with overlooked destinations reliably cheaper than places firmly on the tourist trail. Some businesses may even have taken the opposite approach and offered discounts in a bid to tempt back wary customers.

And perhaps some visitors won’t mind paying extra for their first Italian holiday in a while.

Have you noticed prices changing in Italy this summer? Whether you’ve seen them go up or down, we’d like to hear from you. Email The Local here.

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TRAVEL NEWS

German train strike wave to end following new labour agreement

Germany's Deutsche Bahn rail operator and the GDL train drivers' union have reached a deal in a wage dispute that has caused months of crippling strikes in the country, the union said.

German train strike wave to end following new labour agreement

“The German Train Drivers’ Union (GDL) and Deutsche Bahn have reached a wage agreement,” GDL said in a statement.

Further details will be announced in a press conference on Tuesday, the union said. A spokesman for Deutsche Bahn also confirmed that an agreement had been reached.

Train drivers have walked out six times since November, causing disruption for huge numbers of passengers.

The strikes have often lasted for several days and have also caused disruption to freight traffic, with the most recent walkout in mid-March.

In late January, rail traffic was paralysed for five days on the national network in one of the longest strikes in Deutsche Bahn’s history.

READ ALSO: Why are German train drivers launching more strike action?

Europe’s largest economy has faced industrial action for months as workers and management across multiple sectors wrestle over terms amid high inflation and weak business activity.

The strikes have exacerbated an already gloomy economic picture, with the German economy shrinking 0.3 percent across the whole of last year.

What we know about the new offer so far

Through the new agreement, there will be optional reduction of a work week to 36 hours at the start of 2027, 35.5 hours from 2028 and then 35 hours from 2029. For the last three stages, employees must notify their employer themselves if they wish to take advantage of the reduction steps.

However, they can also opt to work the same or more hours – up to 40 hours per week are possible in under the new “optional model”.

“One thing is clear: if you work more, you get more money,” said Deutsche Bahn spokesperson Martin Seiler. Accordingly, employees will receive 2.7 percent more pay for each additional or unchanged working hour.

According to Deutsche Bahn, other parts of the agreement included a pay increase of 420 per month in two stages, a tax and duty-free inflation adjustment bonus of 2,850 and a term of 26 months.

Growing pressure

Last year’s walkouts cost Deutsche Bahn some 200 million, according to estimates by the operator, which overall recorded a net loss for 2023 of 2.35 billion.

Germany has historically been among the countries in Europe where workers went on strike the least.

But since the end of 2022, the country has seen growing labour unrest, while real wages have fallen by four percent since the start of the war in Ukraine.

German airline Lufthansa is also locked in wage disputes with ground staff and cabin crew.

Several strikes have severely disrupted the group’s business in recent weeks and will weigh on first-quarter results, according to the group’s management.

Airport security staff have also staged several walkouts since January.

Some politicians have called for Germany to put in place rules to restrict critical infrastructure like rail transport from industrial action.

But Chancellor Olaf Scholz has rejected the calls, arguing that “the right to strike is written in the constitution… and that is a democratic right for which unions and workers have fought”.

The strikes have piled growing pressure on the coalition government between Scholz’s Social Democrats, the Greens and the pro-business FDP, which has scored dismally in recent opinion polls.

The far-right AfD has been enjoying a boost in popularity amid the unrest with elections in three key former East German states due to take place later this year.

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