By Darren Cronian on Thursday, May 17th, 2007

With Gordon Brown recently being announced the new prime minister, it’ll be interesting to see what labour’s plans are for the environment, and what further impacts this will have on the travel industry, especially air travel.

Tough Times for the Travel Industry?

I heard this morning that the Bank of England are looking to increase the interest rate once again – I’m not a political or financial person, but I wonder what impact this will have – maybe more consumers will stay at home, especially if the weather is going to be good.

Surely, higher interest rate equals less money to spend on holidays, and that has a major impact on the travel industry, which is recovering from a poor summer, last year, due to the great summer weather and the football world cup in Germany.

Maybe this will mean cheaper holidays, more late deals for travel consumers – I’m speculating, but the increase in interest rates is to curb consumer spending, which cannot be good for an industry, which relies on active travel consumers.


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4 responses to “Tough Times for the Travel Industry?”

Charles | 18 May, 2007 at 1:16 am

Good questions Darren.

I don’t think any travel company will openly admit that it’s a tough time for the industry, but I suspect alot of holidaymakers will wait nearer their time off to book the holiday.

Darren Cronian | 18 May, 2007 at 1:23 am

Funny you should mention that Charles.

Speaking to a few work colleagues today, most said, that they would wait until nearer their holiday, in the hope that they get a better deal. One colleague said that he was quoted £900 two months back, and the same holiday today, is £700, so where’s the incentive for consumers to book early?

Rohan | 20 May, 2007 at 2:35 pm

Well obviously, they keep upping the interest rate, people’s spending will decrease, so yes the travel industry along with many other industries would be affected.

I think it’s funny that no travel companies have commented here.

Darren Cronian | 20 May, 2007 at 2:38 pm

>> I think it’s funny that no travel companies have commented here.

Me too Rohan.

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