Industry in transition
The depreciation of the złoty has not only hit people paying off mortgages denominated in foreign currencies, but also those planning vacations. The stronger dollar and euro have made travel difficult, even though airlines are cutting fares - accommodation, food and other expenses have, for some potential travelers, become prohibitively expensive.
Also, while basic airfares have dropped somewhat, governments have not reduced hefty airport fees and taxes, and airlines have yet to cut fuel charges even though crude oil prices have fallen by more than half, to $60 a barrel. The expensive dollar also has an impact on the cost of airfare, as additional charges and taxes are calculated in foreign currencies.
According to Marek Sławatyniec, an industry expert at Aviareps, since airlines cover their costs in euros or dollars he expects an increase in the cost of airline tickets in Poland to follow if the złoty continues to fall. "Theoretically, the decreasing cost of crude oil should keep prices at their current levels, but airlines have to battle other influences, especially since their financial situation is difficult," he told Polska's Dziennik Bałtycki.
Polas living abroad are also feeling the squeeze. According to Esky.pl, a travel-booking website, interest is already decreasing in travel to Poland for the holidays compared to last year. "Fewer people have chosen to fly from Dublin and London - half last year's number," Agnieszka Wiącek, a marketing consultant with Esky.pl, told WBJ. She added that the current financial crisis and smaller carriers' constant battle with bankruptcy are factors that will separate the strong players from the weak.
"Only the strongest will survive. Maybe some airlines will create alliances in order to survive," Wiącek said.
For now, she does not expect a decrease in ticket sales, but noted that Esky.pl had seen a shift in the popularity of destinations. Last December, the UK and Ireland topped the list. This year, Germany, Norway, Sweden and Spain have become the most popular holiday destinations for Poles.
