News

Travel industry ‘dodges Brexit bullet’ so far

The full impact of Brexit on the global travel industry has not yet been felt as Covid overshadowed issues involved with leaving the European Union, according to an industry poll.

Some 700 senior professionals from around globe contributed to the Industry Report for WTM London, and were asked whether their business had felt any specific Brexit-related pressures so far.

Almost half (45%) said they had not noticed any difference in 2021 because of Brexit.

Of those who acknowledged a Brexit effect, the response was overwhelmingly net negative. Only 8% noted a positive impact compared with 24% highlighting a negative.

The balance, representing one-in-four (23%) of the industry, were unsure or did not know the extent to which Brexit was a factor in their 2021 performance.

Potential issues around passport expiry dates, driving licences, insurance, staffing levels at resorts,  immigration lines at airports, and more, are likely to persist into next year, alongside the issues related to Covid-19.

There will also be a combined Brexit/Covid impact on businesses as well as consumers. Recruiting staff will be different, while the complexities remain around cross-border tax, refunds, fulfilment and accounting.

WTM London exhibition director Simon Press said: “To some extent, the industry so far has dodged the Brexit bullet because the Covid crisis overshadowed and dominated what would have been the first peak holiday season of the Brexit era.

“But as Covid restrictions start to ease, Brexit-related concerns around visas, financial protections, security, duty-free allowances, health cover and so on will come to the fore once more. These changes will need to be considered – and applied – in the context of the post-Covid travel landscape.

“The industry needs to get ready for Brexit again, in terms of not only our own business operations but also how we let customers know about the new requirements.”

When asked, 26% of respondents were confident that industry bookings for 2022 will be comparable with 2019, with 14% expecting 2022 to outperform the last normal year before the outbreak of the pandemic at the start of 2020.

When asked about their own business performance, professionals were equally optimistic, with 28% expecting bookings to match 2019, with 16% anticipating an increase.

However, not everyone is expecting a recovery in 2022. Almost half the sample (48%) think the industry will fall short of 2019, with 11% unsure.

And for some, 2022 will be a struggle, with 42% admitting that bookings are unlikely to match 2019. A further 14% are not sure how 2022 will pan out.

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.