Mixed picture in first quarter
Thursday, 05 Mar, 2009
0
Comment by Jeremy Skidmore (www.jeremyskidmore.com)
As we’re nearly at the end of the first quarter of a year which may go down as one of the worst in living memory – for some sectors at least – I thought it was worth having a look at how the travel industry is coping.
Everyone, it seems, is having to contend with a deal-driven market, whether they are selling the holiday equivalent of a Bentley Azure or a Ford Ka and, of course, people are leaving it later to make a decision.
But the picture that is emerging is far from desperate for many companies. Families are buying and, as has been reported, the big operators are well sold for this year.
The majority of people who are still in a job are effectively in an institution, where they are given four or five weeks off each year and are conditioned to take a holiday. They may cut back and take just one – which is why city break and no-frills bookings are down – but they won’t completely give up on holidays, particularly when they have kids to entertain.
Within the family market it has been well documented that there are certain countries, such as Turkey and to a lesser extent Egypt, selling well because of the exchange rate as euro destinations struggle.
Hoteliers in the euro destinations are slashing their prices, so we will continue to see good deals this summer.
Meanwhile, there are also pockets of high demand for various types of holidays – particularly long haul trips. Perhaps people have a fatalistic view that we’re all doomed and you might as well enjoy yourself now, or that there’s no interest to be earned on savings, so you might as well spend, spend, spend.
The big cruise companies are also faring well after cutting prices in January and February and that is because cruising has successfully re-invented itself as a great family holiday. It’s also all-inclusive, which families on a budget love.
So, who is suffering?
My feedback suggests it is those companies that are almost solely dependant on older clientele living off investment income. As exchange rates have been slashed, so has that income.
Some smaller cruise companies that target elderly couples are having a tough time, as are operators selling cultural and historical tours which appeal to that market.
It’s difficult to make money if you plan to take 16 people on an exclusive tour but can only sell half that number.
But as one specialist operator said to me this week, whether you are currently doing well or not, if you can survive the next year or two and come out of it in good shape, you won’t be doing badly.
How are you surviving the great depression? Let us know by commenting below.
Jeremy Skidmore
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...
Qatar Airways offers flexible payment options for European travellers
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
In Italy, the Meloni government congratulates itself for its tourism achievements