The next few months will be challenging but there are positive trends, says Travel Weekly’s Lucy Huxley
All change! We have our third prime minister in a matter of weeks and let’s hope this time, the appointment of Rishi Sunak will bring some much-needed stability to the country, especially given how challenging the next few months are likely to be.
The financial markets have already reacted positively to the latest resident of Number 10, which will hopefully lead to a fall in the cost of government borrowing.
And if this results in a stronger pound and lower rises in interest and mortgage rates than those forecast under Liz Truss, that can only help the travel industry, especially now signs are emerging that the increasing costof living is starting to bite at the lower end of the market.
In its latest trading update, On the Beach noted that while sales of five-star holidays were flying, those of holidays in the “value” to three-star range were “subdued”. It also gave no indication of how forward bookings were looking. Telling, perhaps?
Deloitte also noted that consumer confidence had plunged to record lows in the third quarter of this year with cutbacks across all areas of leisure spending. It described future spending power as “significantly strained”, particularly over Christmas. That said, many agents are still reporting a fairly buoyant market, especially for higher-value, long-haul and more-complex bookings, which is positive – and hopefully Sunak’s premiership will help maintain that trend.
Talking of trends, homeworking continues to go from strength to strength – making Travel Weekly’s 33-page Guide to Homeworking, an invaluable tool. Don’t miss it!