Well it may be all doom and gloom at home with another proposed interest rise but at least there is some good news for holiday home owners with property abroad. Ryan air, a favourite airline of holiday home owners, today launched it's latest European price war offering up to 3.5 million seats at £10.00 each way including taxation.
This latest battle has already been joined by Easyjet where the chief executive said in a statement yesterday that they had already reduced many of it's fares and were stepping up advertising activity. The 3.5 million seats represents about 10% of capacity and loan to value is thought that many second home owners will take advantage of the initiative.
Airline yields are down at the moment as the number of people travelling abroad has dropped in recent months as customers tighten their belts because of interest rate increases.
Shares in airlines have dropped again and it is thought prices to fly to European destinations will remain depressed throughout the summer months.
It is because of airlines such as Ryan air that holiday home ownership in France & Spain has become so popular. Fares can sometimes be obtained for only a few pounds and this makes visiting a property on a regular basis very affordable. Budget airlines have opened up the whole of the European property market by instigating flights to lesser known provincial airports, Ryanair have regular flights to smaller airports and they have established routes to Alicante, Almeria, Barcelona, Bergerac, Montpellier, Murcia, Nantes, Nimes, Limoges & Tours Loire Valley amongst others.
These routes to the lesser known destinations provide a vital lifeline to property owners. Cheap affordable buildings in rural areas have been purchased off the back of ease of accessibility. Many second homeowners fear though that if the routes are not widely used or remain unprofitable, they may be suspended or even withdrawn which would be catastrophic in terms of holiday afford ability Well for the moment this seems a remote possibility as budget airlines remain committed to their provincial routes. It will be interesting the watch how Holiday Home owners ship and their relationship with cheap flights develops over the next few years especially in the face of calls to curb green houses gases, for which air travel is partly blamed.
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