Trade told: ‘hold your nerve’

OPERATORS and agents have been urged to hold their nerve as fears rise that prolonged political uncertainty could lead to “slow strangulation” of the trade.

PricewaterhouseCoopers UK travel practice leader Malcolm Preston has told the industry to learn the lessons of the 1991 Gulf War as consumers act in an “uncannily” similar way.

In a report, The Lessons of the Gulf War for the Leisure Travel Sector: Is History Repeating Itself?, Preston has advised operators to cut capacity in a “controlled manner”, retain flexibility by using their own aircraft not third-party carriers, and avoid wholesale discounting.

“Cash flow is already being impacted by the loss of deposits from the fall in bookings and the last thing the majors need is a discounting battle that slashes margins all round,” he said.