Travel agents have been warned not to “over commit” themselves in the current economic climate.
Speaking at a Institute of Travel & Tourism Budget briefing in the House of Lords today economist and political journalist Peter Riddell told the travel industry that the
economy is to hit a tough period with consumer spending set to slow. He also warned that the credit crunch and the economy was currently in “limbo” giving
the industry a period of uncertainty.
Riddell said: “The best scenario is it’s going to be tough on consumer spending.
“The amount of available money is going to be squeezed.”
He suggested the economy was going to face a tight two or three years claiming it is a “gloomy message” for the travel industry as disposable income is going to be
squeezed and there is going to be a “period of belt tightening.”
Travel industry representatives at the briefing indicated that holiday bookings remained strong and were confident this would continue.