After four years of continuous growth and a good first half in 2008, the global travel industry has been faced with increasing challenges over the past few months as a result of the global economic and financial crisis. And there are more challenges to come.
The volatility of oil and fuel prices has been exacerbated by the credit crunch in the US and Europe, which has brought some of the world’s biggest financial institutions to their knees.
Despite the sharp fall in the price of oil – it is now more than 50% down on its July peak of $147 – the average price per barrel this year is expected to far exceed its historical peak.
In addition, soaring energy and food prices, rising inflation and unemployment, plus exchange rate volatility, have taken a toll on consumer and business confidence and on disposable income.
Air transport has clearly suffered the brunt of the impact. Yet it is important to remember that this crisis is not just about one sector of the industry – nor indeed about just one country or region.
It is a global problem affecting all parts of the wider travel sector, not to mention related economic sectors that are influenced by or have a direct influence on the industry.
We are assessing the situation – in particular its implications for demand and our early year forecasts – and will share our findings with delegates at World Travel Market’s Global Economic Forum.
Whatever the short-term outlook, our confidence in the future of travel has not diminished.
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