Yahoo Finance Could crackdown spell end for Aussies' cheap Euro-trip loophole?
Aussie expert slams plan as 'virtue signalling'.
Australians may have to fork out a significant amount of cash to travel to Europe, but have been able to enjoy the benefits of cheaper internal flights once there as they bounce around the tourism hotspot.
Whether it be from the Greek Islands to Croatia or Germany to Sweden, Aussies are known for making the most of the long journey from the southern hemisphere by travelling extensively around the continent.
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More than 252,000 Australian tourists travelled to Europe in the 2021-22 financial year, making it one of the world's most popular destinations. But many may not know that France is proposing a minimum-price policy, which would end cheap tickets on those short interconnecting flights.
What's the proposal?
The French government is getting tough on plans to reduce carbon emissions, and its transport minister has announced he will propose a minimum flight-price policy to the European Union, affecting not just flights in France but all flights across the EU’s 27 member countries.
“€10 plane tickets isn’t possible anymore,” Clément Beaune told French news magazine L’Obs, adding that a mega-low cost “doesn’t reflect the price for the planet” during an “environmental crisis”.
While there was no word yet on what the minimum price point would be, Beaune insisted a government-mandated minimum air ticket price would “fight against social and environmental dumping”.
Will it get off the ground?
On Aussie soil, the proposal has been slammed as “virtue signalling” by Professor Roberta Crouch from the College of Business, Government and Law at Flinders University. Crouch said it was too late to crack down on ultra-cheap flights.
“How feasible is it that airlines are going to be able to offer £7 (AUD $14) flights into the future because I think these sorts of airfares are going to die a death because of the cost of fuel,” she told Yahoo Finance.
“And that may well be behind why France is coming out now. It’s this typical virtue-signalling stuff when they already know there's every chance these airfares may not have much of a future anyway.”
While Crouch thinks chances are slim of the proposal getting off the ground, she doesn't think canning cheap flights would discourage Aussie travellers from heading overseas.
“I doubt it would make any difference at all because when an Australian goes to Europe they're dealing with the initial cost of flights to get there, they’re used to expensive domestic flights, and then they're dealing with the exchange rate, which is not favourable at all," she said.
"So, while they might be looking for these cheap flights, I don't think it's going to stop anybody who's already committed many thousands of dollars to a trip.”
Crouch also doesn’t believe Aussies are too concerned about reducing their air travel for the sake of emissions.
“It's pretty hard to guilt somebody who might take a European holiday once every three or four years, especially since COVID,” she said.
Frugal Aussies looking for cheaper travel
With the cost-of-living crisis spiralling out of control, 37 per cent of people now see taking trips overseas as unaffordable, according to a Finder survey, while 57 per cent of those in a G'Day Group poll said they were planning on staying in Australia for their next holiday.
But it doesn't mean Aussies aren't getting smart when it comes to travel, with people looking to take advantage of schemes to get them to their bucket list destinations for cheaper.
According to a survey for Accor and Peloton, 75 per cent of people would be more likely to book their next hotel stay using loyalty points and programs that provided access to discounts and promotional deals.
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