Gap year travel sector fuelled by recession

As recession hits the travel industry hard, a ray of light is shining in the Gap Year travel sector with records broken and positive forecasts for 2009.

Gap Year is the term given to young people in Britain who take time out between school and university, or university and full-time work, and has been broadened to take in young people having a break between jobs, even retirees seeking a lasting experience.

Growth is particularly noticeable amongst recently made redundant young professionals leaving the UK to backpack around the world.

The most popular destination is Australia, which offers a two year Working Holiday Visa to UK residents under 31. One of the least affected economies where the recruitment market is still buoyant; trips Down Under are proving to be very attractive.

The Australian Department of Immigration & Citizenship stats for Working Holiday Visas show a Q3 rise year on year by 21 percent.

Natalie Crowhurst, 25, from Bournemouth has recently been made redundant from her firm of solicitors. She is leaving in January for a six to 12 month around the world trip.

“I’m taking the opportunity to travel around the world as it’s something I’ve always wanted to do. Sure, the circumstances could be better and I’m a little worried about finding work when I get back, but this is an opportunity that I might not get again. So I can’t wait,” she said.

Tom Griffiths, founder of Gapyear.com says, “It’s little surprise that this recession is fuelling the gap year travel sector as we are a “life transition” travel industry, which services people looking for things to do in between life stages, be it before, during or after university, in between jobs or around retirement.

“Many young professionals are losing their jobs and are unable to find other work in their sector, particularly those in finance and property.

“With high disposable incomes and few commitments tying them to the UK, many are using long haul, long duration travel to escape the bad times, or to make a fresh start with a ‘trip of a lifetime’. This sector tends to do well when times are tough, either on an individual basis or as a society, as people look to turn their negative experiences into a positive one.”

Forecasts for the post-university gap years are equally strong. With the Association of Graduate Recruiters forecasting 30 percent less UK graduate jobs available this (northern) summer, more students will opt to take a gap year to travel the world on graduation rather than to find unsuitable jobs with no career path.

And with employers attracted to CVs full of life skills and travel experiences, post university travel has never been more beneficial.

Pre-University gap year travel is also looking healthy as the trend to backpack around the world seems to continue, funded by long hours waiting tables, serving fast food, stacking shelves or on check-outs across the country.

This sector may also witness growth as parents and students think twice about investing £20,000-£30,000 into a degree that might not be completed or that may not lead to a career.

An increasing number are opting to take a pre-university gap year, as a ‘stop-gap’ to help the students find focus, to engage in work experience and consider some travel to broaden their minds.

It’s not all good news. Whilst forecasts for gap year markets around the world continue to show growth, the number of 25 to 35 year old Australian, New Zealand and South African backpackers arriving inbound to the UK to work (particularly) in the finance sector has fallen dramatically, impacting the UK inbound backpacking / gap year market.

However, the weak pound may encourage those already in the UK with jobs to stay longer.

The emerging US Gap Year market is expecting slower growth, particularly amongst the 18 to 24 year old travellers whose parents contribute a higher proportion of the travel fund than their European counterparts. As they tighten their belts less money may be forthcoming.