Oasis Hong Kong Airlines are the first to offer low-budget long-haul flights in what it seems to be the beginning of a trend (if all goes well for Oasis). They are offering a cheap economy one way from London to Hong Kong starting from 75GBP (112GBP with tax). Business class starts from 470GBP one way.

They claim the cheap flights do not come with a decrease in comfort, promising comfortable seats, multiple meals, audio channels and personal TV screens. For instance, the seat pitch in economy will be 32'', which is the same or even better as other companies offer between Hong Kong and London.

 

The inaugural flight between Hong Kong and Gatwick suffered from some problems with the Russian authorities who claimed Oasis didn't have clearance to fly over Russian space. The service eventually took off and the airline issued a statement saying the journey times will be affected as they had to change flying route. The move added 1 hour and 10 minutes to the published schedules.

 

Oasis Hong Kong Airlines is a budget airline based in Hong Kong and using Hong Kong International Airport as its main hub. The first long haul route will be a direct London - Hong Kong route, with destinations in the EU (Milan, Berlin, Cologne/Bonn) and in the US (Oakland, Chicago) to follow shortly.

Oasis was established in February 2005 by a pastor, Rev. Raymond C. Lee and his wife, Priscilla H. Lee. The CEO, Steve Miller, was the founder and CEO of another Hong Kong based airline, Dragonair.

Oasis is flying 2 ex-Singapore airlines Boeing 747-412 aircrafts. The configuration will be 81 Business class seats and 278 Economy class seats.

 

The move is very relevant for the holiday home owners as it might mark the beginning of a trend for cheap air flights, which in turn might see holiday home owners moving further away from their home ground in their hunt for bargain holiday home deals. With the European real estate market becoming more and more competitive, it's a move many holiday home owners will contemplate. It's a move that, if successful, can really open the Asian real estate market to the European holiday home owner.

While it is a good news for holiday home owners who have more options, it is however a bad news for the environment. As flights get cheaper, more people are encouraged to fly and more carbon emissions we release into the atmosphere.

Bulgaria, the African island of Cape Verde and Canada are the new top holiday home destinations, figures reveal. One in ten inquiries about foreign holiday homes in the UK is about Bulgaria, which has become the latest holiday home hotspot for Britons. Spain leads, nevertheless, in the quest for the biggest land grab abroad after the Second World War.

"The number of properties bought by Britons in the former Eastern bloc country has risen by 38% since January", Glasgow Evening Times reported.

However, Spain still remains Britain's sweetheart destination, with 27% of all Britons' second homes and holiday homes abroad located in Spain. The Spanish Ministry of Tourism expects 1 million foreigners to set up a home on the Spanish coast in the next six years.

According to Banco Halifax Hispania, the Spanish arm of Halifax, the UK's largest mortgage lender, the main drive to buying in Spain were the low rate Euro mortgages and the boom in low cost budget airlines flying to Spain.

The passenger numbers from UK airports tripled from 1987 to 2005, with a 9% growth in 2004 alone. The low-cost flights to and from Spain are up 25% from last year, while low cost operators in Spain have increased 160%. This growth has not only opened new possibilities for the DIY traveller, but has also led to the development of new, regional airports. 

With all the low cost flights leaving to Spain from many national and regional UK airports, the Britons have a wide array of options for shorter, more frequent, affordable trips to Spain. It seems to be an overpowering drive for many Britons who buy holiday homes in Spain. A research from Euromonitor's "Travel and Tourism in Spain" report, shows that short trips of one to three days are the fastest growing type of holidays in Spain, accounting for 37% of all trips to Spain in 2004. The trend is only accentuating as more and more people discover a very accessible and affordable Europe on their doorsteps. 

Flying to Spain is nowadays often quicker and cheaper than rail travel within the UK, which fuels the drive of more people to use short trips and even commit themselves to buying a holiday home abroad.

Turkey has seen a holiday home boom after opening up its property market to foreign investors. Previously there was a suspension last year on foreigners being allowed to buy properties in Turkey, but it's all changed now. Buying a holiday home, be it a villa with a swimming pool, cottage, appartment is much easier now, although being subjected to an approval from the Turkish Army. The approval normally adds 3-4 weeks to the buying process.

Turyap, one of the largest real estate companies in Turkey, have estimated that property prices in Instanbul alone will rise 80-120 % this year, after an 85% rise in 2005. It's all the result of foreign investments pouring in, the start of the talks with European Union and the launch of mortgages.

After a new law, allowing foreigners to buy land was passed at the end of 2005, holiday home investors from all over Europe have rushed to snap a holiday home bargains on the Aegean coast. Many agents claim that a lot of the money people were spending on holiday homes in Spain are now redirected to the more promising Turkey. The main draw for this landgrab, be it from private holiday home wannabe owners or from commercial entities, is no doubt the higher return rates they get from investing in the property market in Turkey.

With all the interest in Turkey and in the turkish holiday home market, there is no wonder that EasyJet is preparing to open up a new route from London to Istanbul. The move by such a big budget airline is usually a good indicator of the touristic interest in the area and also in the property market. It's no secret that having an airport near-by, especially one served by a budget airline like EasyJet, lifts dramatically the property prices in the area, as the majority of holiday home owners dream of weekend escapes. It is also an advantage when renting out the holiday home to DIY travellers.

There are exciting news on the market of low budget airlines. The main news comes from BA which has recently cut prices on some of its flights to european destinations as they are aiming to grab more DIY travellers. Some of BA prices compare now with the likes of EasyJet, RyanAir. However, British Airways tries to preserve its image and play above the no-frills league, one example being that they still offer food and drinks for free on these destinations, while the other budget airlines charge for these extras.

As for destinations, low budget airlines are always on the expansion. Here's a brief list of what's new and hot:

EasyJet

- On April 11th, Easyjet added 3 new routes from Liverpool to Faro in Porgugal, Krakow in Poland and Marseille in France

- On March 7th, Easyjet announced 10 more routes.
      London Gatwick to Split (Croatia) to open 2nd of May, 4 times a week (Tue, Wed, Thu, Sat), price starts: £25.99 one way
      London Luton to Bordeaux (France) to open 29th of June, daily, price starts: £25.99 one way
      London Luton to Rimini (Italy) to open 29th of June, 4 times a week (Tue, Thu, Sat, Sun), price starts: £25.99 one way
      Edinburgh to Alicante (Spain) to open 20th of May, on Saturdays, price starts: £30.99 one way
      Bristol to Toulouse (France) to open 21st of July, Daily, price starts: £20.99 one way
      Bristol to Krakow (Poland) to open 21st of July, 4 times a week (Mon, Wed, Fri, Sun), price starts: £25.99 one way
      Bristol to la Rochelle (France) to open 21st of July, 4 times a week (Mon, Wed, Fri, Sun), price starts: £20.99 one way
      Bristol to Marseille (France) to open 22nd of July, 3 times a week (Tue, Thu, Sat), price starts: £20.99 one way
      Bristol to Rijeka (Croatia) to open 22nd of July, 3 times a week (Tue, Thu, Sat), price starts: £25.99 one way
      Paris Orly to Ajaccio (Corsica) to open 14th of July, Daily, price starts: €34.99

- On February 28th, Easyjet announced a new route from London Luton to Lisbon (Portugal)

Ryanair

- On April 12th, Ryanair announced 9 new routes from Frankfurt Hahn to Fez, Granada, Kaunus, Krakow, Marrakesh, Murcia, Trieste, Verona, Wroclaw, prices starting from €2.99 (one way, excluding taxes and charges)

- On April 4th, Ryanair launched 11 new routes from Liverpool to Aberdeen, Alghero, Ancona, Inverness, Kaunas, Krakow, Poznan, Santander, Santiago, Tampere, Wroclaw, prices starting from €2.49 (one way, excluding taxes and charges)

Other low budget airlines: Air Berlin, BMI Baby, FlyBe, jet2, Wizzair.

With all these new destinations, expect to see the holiday home market to boom around these new locations.