Travel consumers tighten their purse strings

By Darren Cronian on Friday, April 18th, 2008

For the first time I’ve noticed the impact the economy is having on the travel industry, with the Euro at an low-time low, the price of a weeks holiday in October, is £30 per person, more expensive than the same time last year.

The price of flights are increasing, with a flight to Spain for 2 adults, and 2 children during the school holidays is now over £1,300 return. Cost of living has certainly increased in the last 12 months, and despite getting a pay increase, my net salary has decreased in April.

Is the state of the economy going to affect your holiday this year?

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10 responses to “Travel consumers tighten their purse strings”

Nick | 18 April, 2008 at 11:40 am

Darren

Just wondering if you noticed the £1 added to each passenger on package holidays for protection since the start of the month.

With an estimated 16 million people travelling unprotected makes you wonder why this protection has been so limited.

Karen Bryan | 18 April, 2008 at 12:01 pm

Well I’m certainly noticing the increase in the price of basic items in the UK such as diesel for my car, gas and electricity for our home and food. When you factor in the increase in costs due to the pound falling against the euro, there is going to be less disposable income in the household budget for travel.

Lee Harrison (owner Select World Travel) | 18 April, 2008 at 1:03 pm

It could be interesting to see which companies impose Currency surcharges on bookings all ready made due to the low rate of the Euro. This is covered in those T&C’s that nobody bothers to read! We have had 1 letter today, the operator absorbs the first 2% but is passing on a 7.7% charge. So the Client Booking Value that is subject to Currency surcharge £1663.00 Amount absorbed by Operator -£33.26 , leaves £1629.74 to Surcharge at 7.7% = extra £125.49 to pay.
I hope it doesn’t happen and Surcharging hasn’t happened for donkey’s years, but this year could be the year of the Currency surcharge hitting the headlines.

Sheila | 18 April, 2008 at 1:34 pm

Interesting question, Darren. With high gas prices and a declining economy in the US, I certainly sense that Americans are nervous about spending on luxuries like travel. At least I feel that way. We generally take 2 significant trips per year and I think this year, we’re only going to do one.

Karen Bryan | 18 April, 2008 at 1:58 pm

That’s a good point, Lee, about the currency surcharges. It would give the companies concerned a lot of bad press but on the other hand it’s hard for companies to absorb such a difference in exchange rates, it could well wipe out any profit made on low margins.

Jason McIntyre | 20 April, 2008 at 1:08 pm

We usually arrange a fortnight away and a weekend break during the year, but this year with the price of holidays increase so much our family holiday will be reduced to a week abroad and a week somewhere within the UK.

The Euro is severely affecting us as its so low.

Dagje uit | 23 April, 2008 at 12:59 pm

good article..
the economy is not affecting my holiday

Rohan | 25 April, 2008 at 8:51 pm

It isn’t affecting our holiday neither but the bloody crap Euro is.

Darren Cronian | 25 April, 2008 at 11:23 pm

@ Jason and Rohan

Yep, the Euro is pretty bad at the moment. Which makes me think that either travellers will either stay at home in the UK (depending on the weather) or go to the US or further afield outside of Europe.

Darren Cronian | 25 April, 2008 at 11:25 pm

@ Nick and Lee.

That’s two subjects I need to write about. Great points.

@ Sheila

Yes, I suspect alot of travellers will be thinking less about travel and worrying more about mortgages and paying debts.

I suspect car fuel increases is a problem for the US as it’s easier to get around than it is by public transport or flights.