After several years of pandemic restrictions, it will take more than a growing economic crisis to stop Scandinavians from travelling abroad. At the same time, the outlook has changed dramatically for a well-known Norwegian travel company.

– When Omicron hit the travel industry a year and a half ago, we were already flat on our backs. Now we are fully recovered, says Hans Christian Birkeland of restplass.no.

Together with his business partner Rune Sandbakken, he has just finalized the annual accounts for Reisegiganten AS, the company behind restplass.no. With an operating profit of NOK 12 million before depreciation, the company is seeing its best result since 2013. All debt has been cleared.

– The loans we received through public support schemes and from shareholders helped us survive the pandemic - just barely. We used that time to phase out the traditional travel agency business and focus entirely on travel search technology. Today, I dare to say that we have the best search engine in Norwegian travel, says Birkeland.

Turning their backs on the pandemic

Last year, the company facilitated holiday bookings worth more than half a billion Norwegian kroner. And 2023 has started strongly for restplass.no.

– We see no signs that rising interest rates, a weak Norwegian currency, or uncertain economic forecasts are slowing people’s desire to travel. I think many are willing to cut back on other spending, but not on their holidays. What we do see clearly is that more people are trying to save money on travel and actively compare prices. After years of travel restrictions and fear of the virus, the summer holiday is the last thing people want to sacrifice, he says.

Where your money goes furthest

At the same time, Birkeland sees clear signs that Norwegians are taking steps to get the most value from every holiday euro. The Turkish lira remains one of the currencies working most in favour of Scandinavian travellers, and food, drinks, and restaurants are still significantly cheaper there than in most eurozone countries. Bookings to Turkey have doubled in recent weeks and are increasing faster than for any other summer destination, while Bulgaria has seen a 50 percent increase.

– These are countries where the Norwegian krone still holds relatively strong purchasing power, so it’s not surprising that more people are looking in that direction. Package holidays are especially popular now because they provide more predictable costs and better financial protection if something unexpected happens, he explains.

According to statistics from restplass.no, Spain remains the number one summer destination for Norwegians, followed by Greece, Italy, and Turkey.

The travel industry reports that sales of all-inclusive package holidays have increased by nearly 50 percent. “Tighter personal finances are making more people want a fixed-price holiday,” says Hans Christian Birkeland of restplass.no.

Food prices have risen by 12 percent over the past year. The central bank interest rate will likely exceed 3 percent during the winter. Electricity spot prices may multiply over the coming months.

This is clearly affecting how Norwegians plan their next holiday abroad. They want a clearer holiday budget and better control over expenses.

Money flies out the door

- People still want to travel, both this winter and next summer, but times are uncertain. Money disappears quickly when buying food and drinks for both adults and children. More and more people are looking for predictability, and what is more predictable than a fixed-price package? We are seeing a major increase in all-inclusive holidays now,” says Birkeland.

According to a restplass.no analysis of Norwegian holiday bookings, the number of all-inclusive trips has increased by 49 percent. More than one in five holidays currently being booked includes food and drinks.

- During the winter, Egypt and Gran Canaria are the most popular destinations for those wanting everything included. For summer, the trend points towards Crete, Turkey, Rhodes, and Mallorca,” says Birkeland.

Buffets have been upgraded

In recent months, tour operators have intensified their focus on holidays with food and drinks included. The selection of all-inclusive hotels is increasing across many destinations.

- This autumn, we have seen a clear increase in demand for hotels offering all-inclusive,” says Nora Aspengren, Head of Communications at TUI, Norway’s largest provider of this type of holiday.

She explains that all-inclusive holidays are very different today compared to the past.

- Some people probably still associate all-inclusive with poor buffet food and low-quality drinks, but today you can find all-inclusive offerings that truly include everything – and at a very high standard. Buffets are now usually extensive, allergy-friendly, and adapted to Nordic eating habits. Several of our hotels also offer children’s buffets, unlimited ice cream bars, and à la carte restaurants as part of the package,” she says.

Aspengren also points out that all-inclusive holidays are both financially predictable and highly practical, especially for families with children.

- Personally, I think it’s very comfortable to have everything included. Everything is available all the time, and we don’t have to plan where to eat every meal every day. Of course, we still visit local restaurants, but we avoid the stress of constantly planning,” she says.

Money to save – but don’t wait too long

Birkeland explains that holiday prices move both up and down, and that those who start planning early can often make a very good deal.

- On restplass.no, we can see prices fluctuating, especially for next summer’s holidays. There is money to save if you follow prices across destinations and remain a bit flexible. At the same time, you shouldn’t wait too long to book the most popular all-inclusive hotels. They are already starting to fill up,” he says.