26 June 2008

Credit crunch forces people to scale down travel plans

The downturn in the economy may not be affecting the volume of holiday sales but there are clear signs that the credit crunch is forcing the public to scale down their travel plans, according to those at the sharp end of the travel industry.

Holidaymakers are tightening their belts and sticking to budgets that until recently were a moveable feast, said Fleetways Travel sales director Ben Braude.

Ã¢â¬ÅâœPeople are refusing to spend even an extra Ã&#pound;10 now,Ã¢â¬~ he said. Ã¢â¬ÅâœWhen they come to us with a budget of Ã&#pound;300 and we ask if they can squeeze it to Ã&#pound;350 the answer is a definite Ã¢â¬ËœnoÃ¢â¬â¢.Ã¢â¬~

Speaking at a YouTravel quarterly industry debate in conjuction with TravelMole, Hays Travel homeworking consultant Audrey Singh said: Ã¢â¬ÅâœThings have changed over the past 10 months or so. You used to be able to squeeze an extra Ã&#pound;10 to Ã&#pound;15 a head out of clients, but not now.Ã¢â¬~

ThereÃ¢â¬â¢s little sign that people are foregoing their annual holiday Ã¢â¬' Travel Republic managing director Kane Pirie said his sales were still growing Ã¢â¬' but there are strong indications that they are economising, especially at the lower end of the market.

Ã¢â¬ÅâœThe majority of our bookings are for all-inclusive accommodation because people want to know exactly how much they are spending,Ã¢â¬~ added Braude. Ã¢â¬ÅâœAnd they want to know down to the last penny, including even the credit card booking fee.Ã¢â¬~

A2Btransfers.com chief executive Renaldo Scheepers said that while people might take their traditional seven or 14-night holiday they were likely to take fewer short breaks, leaving the low-cost airlines in a vulnerable position.

Ã¢â¬ÅâœPeople will stop going to places theyÃ¢â¬â¢ve never heard of,Ã¢â¬~ he said. Ã¢â¬ÅâœI think October, November, December will be the time to tell what the affect the credit crunch is having on peopleÃ¢â¬â¢s travel patterns.Ã¢â¬~

by Linsey McNeill