Travel firms can expect no let-up in the pressures on cash, despite the economy as a whole avoiding financial meltdown.
ABTA chief executive Mark Tanzer told The Travel Convention in Barcelona: “There is pressure all down the line and no sign of it easing. The situation is fraught with uncertainty, and the impact of the recession could be long and powerful.
“You would have to be optimistic to think the pound will get back to where it was two or three years ago. Banks are looking for more security and charging more, and we have to come to terms with that.”
He said passenger numbers were 10%-15% down year on year, “but margins less so”.
Tanzer said future success would depend on quality products, consumers who are confident of financial protection, companies having low carbon footprints and a “fair tax take” by the government.
He said: “We do not have answers to all the challenges at the moment, but there is a sense of real urgency in the industry.”
Referring to a change in association rules clarifying the liability of suppliers when an agency fails, Tanzer said: “The ABTA board has made a strong statement of principle in relation to delivering consumer confidence.”
He added: “It is time to address the fact that the majority of holidays that are unprotected.”
- More Travel Convention coverage at travelweekly.co.uk/abta2009