Industry resilience will be tested as river crisis deepens

There is no let-up in the heat as we approach mid-August, no relaxation of tensions in the Middle East, and no evidence of demand slackening in an unprecedentedly late-booking market.

There may be more attractive late deals available than seemed likely early in the year, and margins may prove disappointing, but the market remains remarkably strong – as confirmed by the latest Harris Poll UK consumer research for Travel Weekly.

The drought conditions, which now extend across much of western Europe, pose an increasing challenge to river cruise operators, with the Rhine and Danube suffering exceptionally low water levels. It is heartening to hear operators are keeping agents updated when dealing with affected customers. With little rain in prospect and news that parts of the Rhine could soon become unnavigable, the situation looks set to worsen before it improves.

Communication and cooperation will be essential, along with flexibility on bookings and refunds. Sadly, we must also expect more wildfires and, no doubt, a degree of doom-laden mainstream media reporting until the heat subsides.

Separately, confirmation that On the Beach has made more than 100 staff redundant as it automates processes offers a sharp indication of AI’s impact on the sector. The online agency notes no staff were redeployed as technology replaced roughly one in five of the workforce.

AI holds great promise, but as Abta chief executive Mark Tanzer points out in our preview of October’s Travel Convention, it could leave companies that automate too far with “a desiccated kind of business”. Travel businesses will need to ensure they strike a balance.

Comment originally from Travel Weekly, August 13 edition