Impact of falling Euro on travel
There’s no question the falling Euro could be extremely bad news for many in the tourist industry but possibly good news for some consumers. Here’s how it could affect major market segments:
Air travel
The International Air Transport Association has issued a forecast suggesting that industry revenue, already downgraded to $3.5 billion from $4.9 billion, could turn into losses exceeding $8 billion if the eurozone financial situation melts down into a full-blown banking crisis and recession. In a worst-case scenario, European air carriers would lose $4.4 billion, while North American airlines, including American, United, US Airways and Delta, would take a $1.8 billion hit. In other words, bad news for European carriers but more demand for US-based.
Hotels
According to Travelocity, a euro collapse would likely lead to fewer European travelers taking vacations on the continent, which could create an excess of available hotel rooms. That would mean lower prices and possibly never-before deals for consumers. Hotel rates in perhaps Europe’s most troubled country, Greece, have already dropped by as much as 20%, according to TripAdvisor."While the Greek economy has experienced a traumatic year, the silver lining for tourism could be an increase in visitors due to the lower prices in many of its popular destinations," said Emma Shaw, a TripAdvisor spokesperson.
Cruises
Luxury cruise that include Seabourn and Cunard are trying to get this year’s cruises filled ahead of any potential crises. Some cruise lines admit there’s lessened demand in part because of the Concordia tragedy. So some observers predict lower prices are full steam ahead.
For all elements of the travel industry, the Euro’s further decline would be drastic. But it all depends how far and how long it lasts. Meanwhile, travelers from North America and the rest of the world stand to be the biggest beneficiaries of the meltdown, according to analysts.
By David Wilkening
David
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 
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
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
Singapore to forbid entry to undesirable travelers with new no-boarding directive