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Why are flight prices higher in Italy than the rest of Europe this summer?

A recent analysis found that fares for flights between European countries have decreased on average this summer - but mysteriously, Italy is bucking the trend.

Why are flight prices higher in Italy than the rest of Europe this summer?
Air fares to and from Italy are rising in summer 2024. Photo by John MACDOUGALL / AFP.

Italy may be at the start of a summer tourism boom, but that’s no thanks to the cost of its airline tickets, which are higher than ever this year.

According to a recent analysis in Italian newspaper Corriere della Sera, intra-Europe fares from June to September 2024 are down three percent on average compared to the same period last year – but Italy’s flight costs have risen.

The average price of a summer flight between Italy and the rest of Europe has increased by seven percent since 2023, data shows, while domestic flights cost as much as 21 percent more.

Corriere doesn’t offer much of an explanation for the hikes, though says industry sources say it could be down to demand being higher than anticipated.

READ ALSO: How Europe’s new EES border checks will impact flight passengers

It’s true that supply chain issues have reduced the available fleet of global aircraft at a time when the appetite for international travel is as high as ever – but this is an industry-wide problem that shouldn’t disproportionately affect Italy.

Carmelo Calì, the vice president of consumer rights watchdog Confconsumatori, suggested in a recent interview that the main culprit is a lack of healthy competition in the Italian market.

“Despite what is said to the contrary, in our country companies often find themselves operating at airports practically alone,” Calì told consumer publication Il Salvagente (The Lifejacket).

“Even when there is competition, prices remain high, because the race is upwards and not downwards.”

The high price of Italy’s domestic flights have been a point of contention for years, with consumer unions long complaining that fares for tickets between mainland Italy and the major islands are exorbitant.

Italy’s Price Surveillance Guarantor Benedetto Mineo, who officially goes by Mister Prezzi (‘Mr. Prices’), last summer called on the seven main airlines operating in Italy to account for a 40 percent annual increase in the cost of some key domestic routes.

READ ALSO: Why two Swiss to Italy flight routes are ‘the most turbulent’ in Europe

This was followed by the government announcing a price cap on flights connecting Sardinia and Sicily to the Italian mainland – that it promptly shelved just one month later, after budget carrier Ryanair led a furious pushback by low cost airlines.

“Here companies believe they have freedom that they don’t have elsewhere, convinced they can get away with it, while in the rest of Europe they fear being punished,” said Calì.

That may explain why the EU’s competition watchdog has been so slow to approve a proposed partial takeover of Italy’s national flag carrier ITA by Germany airline Lufthansa.

The Commission has repeatedly insisted that Lufthansa must give away a certain number of its slots at Milan’s Linate airport in compliance with EU competition rules in order for the deal to go ahead.

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TOURISM

Flights, hotels, beaches: How the cost of travel to Italy is rising this summer

Inflation may now be falling but the price of a summer holiday in Italy has risen again - by up to 20 percent compared to last year.

Flights, hotels, beaches: How the cost of travel to Italy is rising this summer

Italian consumer rights groups said last year that the summer of 2023 would be remembered as “the most expensive ever” for travel. But 2024 has already smashed that record, according to the latest price surveys.

The rising cost of air fares, ferry tickets, hotels, restaurants and beach clubs add up to mean a holiday in Italy will be 15-20 percent more expensive this summer compared to last year, according to a survey conducted by the Assoutenti consumer research centre in June.

While price rises in recent years have been attributed to Covid and rising inflation, which is no longer thought to be a factor, this year Assoutenti said high demand was pushing up prices amid the post-pandemic tourism boom.

Prices in Italy were “out of control as a consequence of the resumption of tourism, after the stop imposed by Covid, and the record number of foreign visitors recorded in the last year,” the survey’s authors wrote, calling on the government to take measures to contain price increases.

READ ALSO: ltaly set for summer tourism boom as bookings increase again

They warned that more Italian families were likely to “give up the summer holidays this year, not being able to face an expense that increases from year to year,” and that those who do travel may book shorter trips to keep costs down.

Some 6.5 million Italians say they won’t be going on holiday this summer at all, with half citing economic difficulties, according to a separate survey commissioned by price comparison website Facile.it.

Meanwhile, there had been a nine percent increase this year in applications for personal loans for travel purposes, the survey found.

Flight prices

One of the biggest factors was the cost of air fares, as both domestic and international flights to and from Italy were found to be more expensive again this year.

While the cost of flights between European countries had fallen slightly following inflation-driven price hikes in 2023, Italy was bucking the trend.

Italy’s flight costs had risen instead, according to recent analysis in Italian newspaper Corriere della Sera, with the average price of a summer flight between Italy and the rest of Europe up by seven percent and domestic flights by 21 percent.

READ ALSO: Why are flight prices higher in Italy than the rest of Europe this summer?

Industry sources suggest the price increase is again down to unprecedented demand, while consumer groups say the main culprit is a lack of competition on the Italian market.

Transport costs

There were price hikes too for those using other modes of transport, with the rising cost of fuel and motorway tolls in Italy named as another contributing factor in the Assoutenti survey.

Ferry tickets were also more expensive, it found, with the average increase this August at +6.3 percent compared to 2023.

Hotels and B&Bs

For a family of four, the Assoutenti survey found the most expensive place to stay in Italy this summer was Porto Cervo, Sardinia, where the average price of a week’s three-star accommodation in August came to 3,500 euros.

The cheapest options were found to be Bibione, outside Venice (872 euros) and Rapallo in Liguria (909).

READ ALSO: Tourist tax: How much is it increasing in Italy’s cities this year?

The cost of accommodation at coastal destinations had risen by 23 percent on average overall, a separate survey by consumer group Altroconsumo found.

Hotels in cities were found to be a less expensive option, with most Italian families heading for the beach or mountains to escape the heat.

Restaurants

Adding to the overall cost, prices also continued to rise this year at restaurants in holiday resorts and at beach clubs: Assoutenti recorded an average increase for the catering sector of +3.5 percent on 2023.

Beaches

Renting sunbeds and umbrellas at Italy’s beach clubs is seen as a necessity by many Italian families – and often by international visitors too, given the lack of free options in many areas.

This too was becoming more expensive in 2024, with the average daily rate for a slot at one of Italy’s private beach clubs up by more than five percent on last year. Prices had also risen by as much as 11 percent between 2022 and 2023.

Beachgoers can now expect to pay around €30-35 for two sun loungers and a beach umbrella for the day on average, though prices can rise as high as €90 in Salento and €120 in parts of Sardinia.

Both private and free-access beaches in Italy also increasingly require advance booking due to higher demand.

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