There may be signs of economic recovery, but the travel industry isn’t out of the woods yet.
As part of a feature on selling long-haul after the recession, Matthew Hampton looks at six key pitfalls ahead…
1: The year 2010
There are two major events in 2010 that are guaranteed to slow travel bookings: the general election and the football World Cup.
And the further the England team goes in South Africa, the longer the slump will last (bookings will spike, however, after Fabio’s squad gets knocked out – or goes all the way to the final).
2: Natural disasters
Natural disasters, such as the recent Indonesian earthquake, always have a negative effect on bookings, especially long haul.
3: VAT
VAT reverts to 17.5% in January, and will almost certainly go up again – perhaps to 20% during 2010.
4: Air Passenger Duty
The increase in Air Passenger Duty (APD) has put a considerable strain on the long-haul market: this means that a family of four travelling to the Caribbean will pay £300 in APD, on top of taxes and fuel surcharges.
5: ESTA
For the US, a possible $10 charge for the ESTA Online Visa Waiver service may put people off going there (but other long-haul markets could benefit).
6: Booking habits
Late bookings are a double-edged sword: a sale may be a sale, but at what cost to the operator? Anything up to 70% of lates are sold at a loss.
- Which pitfall will have the most impact? What have we missed? Discuss it on the travelhub forums…