The High Cost of Summer Vacations in Greece
This year, many Greeks are finding that summer vacations are nothing more than a dream due to the exorbitant prices of services and holiday packages. This has made planning leisure trips even to nearby and relatively cheaper destinations out of reach for some. The high costs are taking a toll on Greek households, leading to cutbacks on spending not only on vacations and travel, but also on essentials like food.
Survey Results
A survey conducted by the Research Institute for Retail Consumer Goods (IELKA) reveals that half of consumers in Greece have decided to forgo taking a vacation this year. Additionally, 32% of respondents stated that they will be going away for fewer days compared to previous years. The financial strain is evident in the reduced vacation plans of Greek travelers.
Inflation Impact
The impact of price hikes on services and products related to summer getaways is evident in data from ELSTAT, which shows a significant increase in inflation rates for June. In particular, plane tickets have seen a price hike of 19.7% compared to the previous year, making travel even more expensive for Greeks. The cost of holiday packages has also risen, further limiting the options for those looking to take a summer vacation.
Rising Prices Impacting Greek Families
In Greece, the cost of living continues to climb, with prices of basic goods and services increasing by an average of 12.7%. This rise in prices is particularly noticeable in the hospitality sector, where hotel rates have surged by 12% compared to last year. One of the main drivers of these price hikes is the soaring cost of food, especially olive oil, which has seen a staggering 55% price increase since June.
Challenges for Greek Families
For many Greek families, the rising cost of living is becoming a significant burden. According to data from the Association of Passenger Shipping Enterprises (SEEN), the cost of travel has become prohibitively expensive for some families. For example, a family of four wishing to travel from Piraeus to Rhodes and back with a car, without a cabin, would need to budget 845 euros for the journey.
Consumer Cutbacks
As a result of these price increases, many Greek consumers are tightening their belts this year. In a recent survey, 71% of respondents reported cutting back on non-essential expenses, such as dining out, vacations, and travel. Additionally, 55% of respondents stated that they have reduced their spending on food and groceries, reflecting the financial strain that many families are currently facing.
Online Shopping Trends in 2021
Online shopping has become increasingly popular in 2021, with more and more people turning to the internet to purchase goods and services. The convenience of being able to shop from the comfort of your own home, combined with the wide variety of products available online, has made it a preferred choice for many consumers.
The Impact of the Pandemic
The COVID-19 pandemic has accelerated the shift towards online shopping, as lockdowns and restrictions forced people to find alternative ways to shop. Many brick-and-mortar stores were forced to close, leading to a surge in e-commerce sales. This trend is expected to continue even as restrictions are lifted, as consumers have become accustomed to the convenience of online shopping.
Changing Consumer Behavior
As more people shop online, their expectations have also evolved. Consumers now expect fast shipping, easy returns, and personalized recommendations. This has led to an increase in the use of AI and machine learning technologies by online retailers to enhance the shopping experience and meet these demands.
The Rise of Mobile Shopping
Mobile shopping has also seen a significant increase in 2021, with more and more people using their smartphones and tablets to make purchases. This trend is driven by the convenience of being able to shop on-the-go, as well as the rise of mobile payment options such as Apple Pay and Google Wallet.
