May 19, 2008
Travel industry resists the credit crunch
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.