And if you think that's enough with high interest rates and electricity prices, a weaker Norwegian krone exchange rate could make summer vacations significantly more expensive for anyone planning to travel to the US, EU countries or the UK.
The Norwegian krone is in crisis mode and offers links to the pesetas, the former Spanish currency, where hundreds are required to buy a coffee in Mallorca.
The Euro is currently at NOK 11.7, but between 2000 and 2014 it fluctuated between 7 and 8.3, we have to believe. Bank of Norway. That year it began to rise violently against the Crown.
NOK was worth NOK 10.8 per US dollar at the end of March and has not been so expensive in the past 25 years, according to historical currency exchange rates. Bank of Norway. 5.6 to 9 kroner to the dollar by 2020. The British pound has also appreciated, at 13.8 kroner a British pound at the time of writing.
20 percent more expensive travel
A weak krona combined with inflation is making charter trips 20 percent more expensive than last year in the countries we travel most often, says Marie-Ann Sacrisson, country manager at Wing du Netavisen. Statistics Norway Travel Survey Travel spending is expected to rise 24 percent from 2022 to 2023, below this year's growth.
– Everything we pack is affected by the euro. Jet fuel is affected by the dollar. That, combined with a weak currency, has caused travel prices to skyrocket in the post-pandemic years, he says.
Inflation has also affected prices at rival TUI.
– Between 2022 and 2023, our prices generally increased by about 10 percent in line with inflation. But it is important to factor in the fact that prices for travel change and change at all times throughout the year. Here, market demand and the price of jet fuel are an important factor, says Anne Mørk-Løwengreen, communications manager at TUI to Nettavisen.
He adds that because the company sells trips to countries with varying levels of inflation, it is difficult to give an exact answer.
Norway says prices are controlled by supply and demand.
– The cost picture for an airline ticket is complex and includes, among other things, fuel costs and taxes and fees. Increased fuel prices and airport taxes naturally affect the prices of airline tickets, says senior communications consultant Eline Hyggen Skari to Norwegian du Netavisen.
Economist: – I gave up
Jan Ludvig Andreassen, Chief Economist at Eika Gruppen is responsible for monitoring the macroeconomics at home and abroad. He says that the Crohn's exchange rate is impossible to predict, and all previous explanations of why and how Crohn's is affected disappear.
– I quit, says Andreasen to Nettavisen.
The krone exchange rate has not reacted to the recent fall in oil prices, high interest rates and surpluses in the state budget. Andreasen has previously argued for a fixed exchange rate policy with the krona pegged to the euro – and is doing so again.
– There is a lot of uncertainty around the krone, and it creates noise for wage settlements, trade, where people don't know if goods traveling in and out of Norway and foreign workers will be profitable.
– One
Still traveling
But expensive time or not, people go on vacation.
– We see people traveling to traditional destinations in the Mediterranean: Spain, Greece, Cyprus and Croatia. Despite the expensive time and high costs, people treat themselves on holidays. We see that the best hotels are sold first.
Statistics Norway does not hide that information. Norwegians' travel activities increased both within and outside the country. But mostly domestically.
– It is noteworthy that the proportion of Norwegians vacationing only in their own country is increasing. Before the pandemic, about 10 percent of those questioned in the travel survey said they had only vacationed in Norway. By 2023, this will increase to 22 percent, according to Statistics Norway's Senior Advisor Krø Henriksen via the agency's website.
– Journey to Lisberg
Macroeconomist Andreasen reminds us that the Norwegian krone stands against the Swedish krone.
– Go to Lisberg or similar. This year is going to be a big event for Haridoor families.
And then for Norwegian companies that welcome tourists, he points out, the weak krone is a treat.
If Sweden isn't bad enough, countries outside the Eurozone are naturally cheaper.
– The Turkish Lira is very favorable. Even if there is a large amount of inflation there, it will be reasonable, says Winkle Jackrison.
He advises Norwegians willing to travel to follow campaigns and newsletters.
– Please travel out of season, then it's cheaper than mid-July.
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