Inbound travel companies have been forced to freeze prices
this year as they battle the effects of the weak US
dollar.
Members of the European Tour Operators Association are predicting a
rise in visitor numbers this year, although the majority say this
is down to the price of holidays being offered overseas.
More than 40% of the association’s 260 members, which include
Lastminute.com, Expedia, Cendant, InterContinental Hotels Group and
Marriott UK, are predicting visitor growth of more than 10%, while
42% predict growth of up to 10%.
More than half of ETOA’s members said clients’ spend
– including the cost of the holiday and spend in the
destination – would be on a par with last year, with 28%
predicting spending would drop.
The weak US dollar has been branded the greatest threat to
Europe’s inbound tourism business by members, with ETOA
executive director Tom Jenkins describing it as a “double
whammy” for the inbound industry.
“The weak dollar not only makes Europe expensive for its
number one and high-spending market, the US, but it also makes the
US more attractive to Europe’s second biggest market, the
Japanese.”
He predicted visitor growth in the UK of around 12%, but said
spending per passenger would be around 14% down on 2000 levels.
“Prices had to be reduced following September 11 to stimulate
demand. If the price is right, people will travel, which means it
takes years to establish the price again,” he said.
However, ETOA members feel the perception of the European tourism
market has improved in the last 12 months with more than a third
claiming their customers are more positive about the destination.
Only 6% said customers are less positive about coming to Europe.