2011 will see a polarised market, says AITO chair Moore
Thursday, 19 Nov, 2010
0
Ahead of its annual conference in Brussels which starts tomorrow, AITO chairman Derek Moore ruminates on the year ahead….
Following recent conversations, it recently struck me that 2011 could be a very unusual year with a strong likelihood that the market will become polarised over the coming 12 months. The tour operators and travel agents that I have spoken with say that high-value holidays are very much still selling as it seems that the rich will always remain rich and want to travel.
Conversely, at the lower end of the market, the cheaper bucket and spade holidays seem the most likely to suffer due to lower disposable incomes and fears of unemployment due to government cuts in the public sector. So what does that mean for tour operators and travel agents in 2011?
The feeling is that the travellers seeking cheaper, simpler holidays will increasingly use the internet to source deals, putting a greater squeeze on prices, whereas the market for more complicated, higher-value holidays can realistically only be captured by specialist operators and non-direct selling agents.
Travellers with lower budgets are much more price-sensitive and there is likely to be a considerable element of horse-trading before people take a decision on which company they travel with. The top end is not quite so price-led but demands quality, service, expertise and is prepared to pay for it. Operators and agents who can satisfy and maintain premium clients can look forward to a promising 2011.
What about the royal wedding and its impact on travel next year?
Personally I just cannot see it being a major factor for outbound travel although undoubtedly it will bring additional visitors to the UK and Visit Britain must be rubbing their hands with glee at this golden opportunity.
The wedding itself is a one-off event, unlike a World Cup which can last 4 weeks (or typically less for us English fans), so the impact is minimal.
Of course some people will stay to soak up the feel good factor in the UK but seeing as it will be a global event, people can watch it in the comfort of their hotel room in South Africa just as much as in their front room in Surrey. Any predictions of a massive drop-off in numbers travelling overseas are likely to be wide of the mark.
So to conclude, what does 2011 hold? It should be a better year than the last two, as customers are now fully accustomed to the downturn and have tailored their spending accordingly, while the mentality that “we will never go abroad again” is a distant memory.
If the big two travel companies keep capacity down then margins could be reasonable, but their history in this respect is not good. Overall, it will still be challenging but at least we are heading in the right direction.
Dinah
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Clearing CSS/JS assets' cache... Please wait until this notice disappears...
Updating... Please wait...
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements