Lithuanian seaside entrepreneurs say that both accommodation and food will cost more this summer. Holidaymakers are already noticing the price differences.
Palanga, Lithuania’s most popular seaside spot on the Baltic coast, is finishing the last upgrades before the summer season kicks off, such as a new pathway to the sea. It is partly funded by parking fees, which are also going up this year, by 0.2 euro per hour on average.
“Fuel prices and energy prices are rising, and these are the factors that are driving the increase,” says Ausra Dangelaitiene, head of the Palanga Municipality’s toll department.
Visitors to the resort say they have noticed that both hotels and restaurants have become more expensive this year.
“The prices have been raised, but the quality has not improved. The food is rather poor,” says Vytautas from Kaunas.
Cafe and restaurant owners are open about their plans to hike prices, especially as some of their costs have doubled or tripled. For example cooking oil went from 10 euros to 30 euros a litre.
“We are planning to raise all prices by 10%, because electricity, gas, all costs, foodstuffs have become more expensive and we have to raise prices,” says restaurateur Henrikas Tautkus. “We won’t work in the red, we are a profit-making organisation, the summer is short and everyone wants to make money.”
Ingrida Valaitiene, president of the Association of Hotels and Restaurants of Palanga, makes no secret of the fact that prices will rise.
“We shouldn’t expect the same prices because our services are also influenced by our supply chains. But there will certainly not be a price shock for our guests. Businesses are already dealing with this problem, looking at how to reduce prices,” assures Valaitiene.
While holidaymakers are already booking accommodation for this summer, the season has not properly started yet, she says.
“The pandemic has done its work – people are not in a hurry to book in advance. The real picture becomes visible two weeks ahead. It’s still too early to say how good this summer will be. At the moment, hotels are 30% to 40% booked,” according to Valaitiene.
With the end of the pandemic, there are also hopes that foreign holidaymakers will come to Palanga this year, but it is still too early to tell how many.
However, the resort has in the past been popular with Russians, who will not be able to come to Lithuania this year. But, according to Valaitiene, even before the pandemic tourists from Russia did not make up a large part of the tourist flow.
“Even before the pandemic, for several years we did not have the same numbers as, say, 10 years ago, when bookings used to be from 7 days to 14 days and even longer, with large flows, and travel agencies used to book reservations in advance and hold blocks of rooms. We have not had that for a long time,” says the head of the association.
When it comes to Covid, Valaitiene stresses that Palanga will be a safe place.
According to Tautkus, many expatriate Lithuanians are planning to return this summer. There are already dates when there are no rooms available in hotels.
“We have increased the price of a room by 5 euros this year, because sales are high for early bookings, because everyone understands that the earlier you book, the better price you get,” says Tautkus.
The Tourist Information Centre says it is already receiving interest in what there is to do and see in Palanga.
“People are planning shorter holidays not as far in advance as they used to. A person with a low income can come and stay for a week. Those with higher incomes will choose a wider range of attractions and services,” says Rasa Kmitiene, director of Palanga Tourist Information Centre.
According to the Neringa Tourist Information Centre, the cheapest offers have already been snapped up by the end of September, with a third to a half of the rooms booked in hotels and food prices are set to rise by around a tenth. (LRT/Business World Magazine)