UK travel industry bullish for 2008, finds Travelmole study
The UK’s travel industry remains bullish for 2008 despite stagnating volumes for 2007, according to a study by Travelmole and public relations company BGB.
Among the outbound tour operators surveyed, 51% reported modest growth in turnover in 2007, while 22% reported strong increases.
But 22% said their turnover was stagnant, while 3% admitted they had suffered a modest decline and 2% reported a strong decline.
When asked for their forecast for 2008, 58% said they expected further modest increases while 27% were confident of strong increases.
Among domestic operators, 64% reported modest increases in turnover in 2007, and only 4% reported strong growth.
Operators blamed the sluggish market on the wet summer, on the back of a disappointing summer the previous year.
But these companies were the most bullish for 2008, with 78% expecting modest growth and 11% predicting strong growth.
Meanwhile, inbound operators have suffered the most. According to the findings of the Travelmole/BGB online survey released at World Travel Market, 2007 turnover has remained static for 38% of operators.
But 35% have seen modest growth and 21% claimed strong increases in turnover.
Looking forward to 2008, 26% of inbound operators are predicting strong growth, 58% are expecting modest growth but 14% believe their turnover will stay the same.
Inbound operators also blamed the poor weather along with higher air fares and lack of funding to UK tourism bodies.
The study, which also involved interviews with key players in the industry, found long-haul destinations are the best sellers for 45% of outbound tour operators and agents, followed by short-haul trips (34%), Western Europe (19%) and the UK (7%).
Operators said long-haul destinations are selling better because they are less easy for the traveller to book independently and the price advantage of using an operator is stronger.
Many believe the short breaks market is reaching saturation, largely due to increased airport security and immigration hassles.
Cruising, meanwhile, is one of the fastest growing markets, with Mediterranean cruises boasting a 38% share.
A number of companies interviewed said a shortage of qualified staff was a growing concern, particularly IT specialists.
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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