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Recession has caused holiday makers to reconsider holiday plans and the effect is showing up clearly more than 50% people have already cancelled there holidays and many are looking for cheaper holidays options.
Cheap family holidays are gearing up to cater the demand and many holiday companies are offering heavy discounts.
Budget airline, Ryanair, has revealed its plans to combat rising fares despite the huge price hike in oil costs. The airline has pledged that it will streamline its operations in order to keep prices down and is prepared to take a hit in profits without forcing its customers to pay heavy flight costs.
Ryanair has already indicated its intention to retain its customer base by cutting jobs and refusing to increase staff pay. The airline has also acquired cheaper and more efficient aircraft whilst grounding several of its current fleet.
To assist in the drive to implement wholesale price reductions, Ryanair is asking holidaymakers to check in via the internet. This will help to cut handling and other costs.
A company spokesman stated that although the airline would see a short term reduction in its profits, the adoption of these measures would lead to the corporation being well placed to resist the effects of the credit crunch. The spokesman also insisted that Ryanair’s actions will actually see an increase in growth and will help it to grab a larger slice of the holiday market from its competitors.
Industry analysts suspect that many of the world’s largest airline companies will face bankruptcy during the current economic downturn
Current research has shown that airline bankruptcies are on the rise due to the troubled global economy. The credit crunch has led to an increase in oil prices which now means that the days of cheap holiday flights are now over. Industry experts have warned holidaymakers to be prepared for a steep increase in fare prices.
Companies such as Ryanair and EasyJet have built their business around being able to undercut the fares of other major airline corporations but analysts are now speculating as to whether these budget carriers can survive if the credit crisis continues.
In response to the instability in the oil industry marketplace, EasyJet have now stated that they will increase their fares but insist they will still remain competitive. A company spokesman said that no business can continue if it is unable to cover the cost of its operations.
However, British Airways appears to be well prepared to see out the current economic situation and has no qualms about passing on costs to passengers.
New Jersey based car rental provider, Avis , is introducing a cheap weekly rental package for its UK clients. British customers can expect to rent a vehicle from £126 which means that a car can be hired for a daily rate of £18. Compact cars will be available from £136 per week and larger carriers from £150.
To benefit from Avis’ new vehicle hire offer, customers must reserve their car between the dates of the 26th May and the 30th June 2008 . The full term of the hire must also end before 30th June 2008. Additionally, cars must be hired for between 3 and 27 days, consecutively.
Those seeking to take advantage of the deal will find that carrying out bookings online will save time. The car agency requires 24 hours notice prior to collection and full payment is required at the time when the booking is made.
The leading car company has approximately 4000 branches worldwide.
Holiday sector companies are showing signs of resistance to the effects of the current credit crunch. Major tour operators are now reporting that their profits are remaining relatively untroubled by the economic malaise that is creating market instability in other industries. Giant travel corporation ,Thomas Cook , has also stated that its quarterly results are on target.
The travel industry was expected to be hit by the global economic slowdown as consumers begin to curb their spending habits in the face of financial hardship. However, holidaymakers are proving that they are not yet willing to give up on their vacations.
Some industry analysts, predict that tour operators will be unable to maintain their current profitability and the financial outlook will be bleak when the sector feels the full impact of the oncoming recession. Additionally, the continued unpredictability of the oil market will have an adverse affect the price of fuel and lead to a steep, rise in the cost of holiday packages.
Surfing the internet is proving to be the preferred method of booking holidays for thousands of British holiday makers. The traditional method of using a travel agent to book leisure time abroad is in decline as increasing numbers of British travellers search comparison and travel websites for cheap deals.
British holiday makers are revelling in their independence, as more pople conduct extensive online research into travel destinations and associated packages
Traditionally, all aspects of holiday travel were covered by a travel agent which meant that travellers usually received adequate protection in the case of flight delays and unexpected flight cancellations. However, those who make their own holiday arrangements must take the necessary steps to ensure that they obtain the correct insurance policy.
Holiday insurance provider M&S Money has released details of research that revealed that nearly 70% of households have access to high-speed internet connections which has played a major role in enabling 50% of all holiday makers to arrange their own holiday.
