Inbound operators are less concerned about the impact of the rising cost of living and deteriorating economic outlook on demand than some of the outbound sector.
Speaking during a round table discussion at the recent UKinbound conference, the chief executive of one UK inbound operator noted: “We’ve had the worst recession already with zero or little turnover for two years, so this is a pleasant moment. The world is going crazy, but we have business. We didn’t get much help from government [during Covid], we won’t get much help from government now. But business is turning over so we’re much better off than 18 months ago.”
A US specialist operator hailed the exchange rate with the dollar as bringing “happy days”, saying: “Deposits are rolling in since the pound went through the floor.”
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A second US operator agreed: “The media coverage of the Queen passing and the fact we have the Coronation next year are positive.”
The head of a visitor attraction reported: “We invested £3 million in a new visitor centre which opened in July 2019 and shut in March 2020. So we went into Covid in debt, then had a loan. This summer was much better than we forecast, and projections for next year look good. We’re so much better off than two years ago.”
However, the head of a hotel group argued: “Energy bills are a huge concern. Our costs are going to double and we’re closing hotels to ensure we have enough staff in the ones operating.”
A destination manager also highlighted rising prices, arguing: “The energy costs can’t be under-estimated. I have a large regional theatre whose energy bills have gone from £150,000 a year to £670,000, and an aquarium whose bills have gone from £300,000 a year to £1.2 million. That is not viable.”