Abta has expressed concerns about the knock-on effects the government’s austerity cuts announced today will have on the market.
The association’s head of public affairs Luke Pollard said he expects consumer confidence will be dented by the spending review which aims to slash a further £7 billion off welfare spending but could lead to the loss of 490,000 public sector jobs.
However, he added while the cuts will be tough, there are some signs for optimism as consumers increasingly look for increased value and trust in the companies they buy their holidays from.
He said: “The cuts announced today will undoubtedly land a blow to consumer confidence which will have a knock on effect on how consumers want to spend their money when it comes to holidays, but the message from the Travel Convention is that the travel industry needs not to be too pessimistic.
“Yesterday we heard from Douglas McWilliams, founder and chief executive of the Centre for Economic and Business Research at our Travel Convention in Malta.
“He predicted that while the economy in the UK means British disposable incomes will be suppressed in the immediate future, current austerity will force consumers to spend smart in order that they can continue to have money for ‘new’ essential items such as travel.
“Clearly value for money will be key to holidays over the coming year, but our members and partners are also telling us that holidaymakers want to be able to trust the companies they book with which is why holidaymakers can be reassured when they book with Abta members that they will receive high professional standards, value and quality.
“We also heard at the convention that spending on travel will be one of the stronger sectors of the economy over the coming years as well as being a sector that will be key to job creation.”
- More from the Travel Convention at travelweekly.co.uk/tc2010