Katla DMI travel agency had 1100 tours booked this spring worth about 300-400 million kroner, with a combined 7500 nights in Iceland and organized tours. They have all been cancelled. Another travel agency in Spain says Iceland is no longer compatible as a cheap destination. Euromech reported about a Norwegian travel agency with 1500 cancelations in Mars and there are numerous reports about the cost increase in Iceland.
In one year over all prices have increased by 30% in Iceland. By comparison prices have risen about 2% in Germany. “The cancelations are hitting us hard, those were supposed to be a prominent series of tours this summer. Both in Hotel Klettur and Hotel Örk,” Geir Gigja, head of marketing for the two hotels informed . “The situation is particularly serious, the costs have become so high that the Katla’s customer in Germany isn’t even trying to sell the tours, they simply don’t think they can,” he concludes.
The Iceland Tours operate worldwide. “When customers come to our offices they are able to compare the prices in Iceland do other destinations. For example the cost of two weeks for one family in the US is similar to the cost of one week in Iceland. Obviously many people opt for a two week holiday,” David Fernández Lorca, with Iceland Tours in Spain informs.
Iceland has simply become too expensive and many travel agencies that have been bringing tours to Iceland in the last few years will turn their attentions elsewhere in 2018. For example tours to Norway have dropped in prices. “The brand of Iceland, known for its great natural beauty is becoming known for being very expensive,” Lorca concludes.