Travel Weekly editor-in-chief Lucy Huxley says balance must be struck between value and margin when market returns
For many people in the 1980s, a Saturday night staple was the TV gameshow The Price is Right.
The concept of the show – contestants identifying the price of items to win them – might not seem particularly relevant to the travel industry in the current crisis. But striking a balance on future pricing that is both financially viable for suppliers and deemed reasonable by a nervous customer base is going to require considerable expertise and good sense.
Hovering in the background is the issue of insurance, both for businesses and consumers, and the industry will be hoping underwriters can create products which are competitively and accessibly priced.
First, however, suppliers will need to work together to ensure the right product is available at the right price for when travel-hungry customers start to research their next holiday.
Some of those I’ve spoken to this week fear the pandemic will signal the end of accessibly priced holidays as airlines, in particular, ramp up prices.
But others believe attractive prices offered by accommodation providers and hoteliers will help to balance things out, at least in the short term.
In recent years, holidays have increasingly been seen as essential rather than disposable expenditure for consumers. But in a post-Covid world, with a wealth of other considerations at play, there are no guarantees that will still be the case. In the months and years ahead, the need for the ‘price to be right’ will be more important than ever.
Travel Weekly editor-in-chief Lucy Huxley
Comment from Travel Weekly, May 21 edition
