Economic expert warns industry of tough times ahead
Economic forecaster Douglas McWilliams CEBR had some bad news for the travel industry when he spoke to delegates at this year’s ABTA Travel Convention.
Warning the audience that “quite a lot is going to be depressing” he told them tough times would continue.
“People are going to have their incremental spend squeezed,” he said.
“The travel industry is going to have to compete with other industries for the share of the pound. Your product, compared with other products available, is going to be more expensive.”
He said perhaps the only silver lining was that more traditional sunny destinations will get cheaper again.
“Southern Europe will become cheap again. Even if the euro doesn’t break up it will have to become cheaper,” he said.
“But super cheap travel is no longer going to be around with transport costs the way they are.”
He advised the travel industry to focus on customer service and to move from its “Primark stage to its M&S stage”.
“Parts of the industry need to get away from the ‘rip-off’ image where hidden charges are slipped through. Ultimately customers will not put up with this when they are paying more in real terms.”
Finishing on a higher note, he told delegates: “You guys will have to change and I’m sure you will. You have a huge amount of optimism and dynamism, so whatever the future you’ll have a future.”
by Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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