Mete Vardar: Markets need time to accept new prices

Mete Vardar, Chairman of Turkish leading tour operator, Jolly, has stated that Türkiye’s tourism sector is experiencing a significant price transition period, adding that international markets will need time to adapt to the country’s new pricing levels.

Speaking on EkoTürk TV, Vardar said Jolly is having a successful season overall and that expectations have largely been met. While the company is performing above expectations in terms of guest numbers, revenue growth has lagged behind. According to Vardar, Jolly is currently recording a 17% increase in customer numbers compared to the previous year, reflecting strong demand in the domestic market.

Hotel contract pricing has changed

Vardar noted that Türkiye is currently in a transition period regarding tourism pricing.

“In the past, hotel contracts could be renewed with annual price increases of just 1% or 2% in foreign currency terms. That is no longer possible,” he said.

He explained that rising inflation and the fact that exchange rates have not increased at the same pace as domestic costs have significantly changed the pricing structure. As a result, tourism prices in Türkiye are now increasing by approximately 20% to 25% in foreign currency terms.

‘Türkiye has gone through a sharp price transition’

According to Vardar, international visitors previously received services worth around $3,000 while paying approximately $1,000. Today, tourists still receive the same level of service but pay closer to $2,000.

“Tourists can still enjoy holidays in facilities offering features and services that are difficult to find elsewhere in the world at the same price level,” he said.

Vardar added that Türkiye had historically been perceived as an exceptionally low-cost destination, but pricing is now moving toward a more balanced level.

“Türkiye has gone through a sharp price transition, and it will take time for markets to accept this change. Over time, Türkiye will find the right pricing balance,” he said.

Regional conflict impacts tourism demand

Vardar also assessed the impact of the ongoing conflict involving Iran, Israel and the United States on Turkish tourism.

He said the conflict has affected Türkiye from multiple directions.

“Tourists who chose not to travel to destinations such as Dubai did not automatically switch to Türkiye. The presence of a war in the region has affected Türkiye just as it has affected destinations such as Egypt,” he said.

Vardar noted that the Türkiye Tourism Promotion and Development Agency (TGA) and other tourism organizations have conducted intensive promotional efforts to communicate that Türkiye is not directly involved in the conflict.

He also pointed to a decline in arrivals from Arab markets, which has particularly affected city hotels. In addition, visitor flows from Iran and Israel have largely disappeared due to the regional situation.

Limited ability to respond with price cuts

Vardar said that during previous crises tourism businesses often relied on aggressive pricing strategies to stimulate demand. However, rising operating costs now limit the industry's ability to respond through direct discounts.

Instead, tourism companies are increasingly using value-added campaigns.

“We are not reducing prices directly. Together with our hotel partners, we are offering campaigns such as ‘stay five nights, pay for four,’ which still provide guests with an effective 25% price advantage,” he said.

Foreign tourists benefit from early booking

Addressing perceptions that foreign tourists pay less for holidays in Türkiye, Vardar said the situation is partly linked to booking patterns and length of stay.

International visitors typically book much earlier and stay significantly longer than domestic travelers. According to Vardar, the average stay for foreign tourists is 8.8 nights, compared with 3.2 nights for Turkish guests.

This allows tourism companies to optimize occupancy through longer-stay promotions rather than direct price reductions.

Early booking advantage narrows

Vardar also announced that summer sales campaigns began across travel agencies on June 10.

Under normal market conditions, he said, travelers booking six months in advance would expect to receive around a 40% price advantage compared with last-minute bookings. However, due to the current geopolitical environment and war-related uncertainties, that gap has narrowed to approximately 20% this year.