Though the UK has finally emerged from recession, its effect has been profoundly felt in almost every sector of the economy. This is particularly true when it comes to the travel industry where most insiders predict difficult times ahead. As you might expect, travel is a highly cyclical industry and is tied in for better or worse to the economy. So, when times are good, people tend to travel quite a bit, but when they are bad folks often choose to stay at home.
In fact, recent travel trends have even led to a few new travel neologisms. The most popular and probably overused new term is staycation. This is when people choose to take their annual holidays in their home country rather than heading overseas.
But when people do decide to travel outside of the UK, the numbers tell us that the holidays are not only getting shorter, but also that tourists are far less likely to travel a great distance. For example, popular vacation destinations like Las Vegas and Orlando have experienced a precipitous decline in guests from the UK. However, countries that are located closer to home have actually reported a slight increase in holiday rentals Amsterdam .
The likely explanation for increases in holidays to neighbouring countries and those that are close by is the sudden availability of affordable airfares. As with any highly cyclical industry, airlines must adjust their rates and offer attractive deals when the economy is under pressure and travel begins to slow down.
Another unfortunate trend that we have encountered is the sudden dearth of holiday deals for families. The simple fact is that most hotels and airlines are struggling mightily in the wake of the recession and they simply cannot afford to offer deep discounts to entire families anymore.