You only have to watch the news to see what matters are affecting the industry now which could make 2017 its toughest yet. Terrorist attacks, political unrest and the weakening pound are all big issues which consumers are considering before they book this year’s break.
It has been estimated that four in ten travel companies are currently in significant financial distress. Of the 7,000 companies which make up the travel sector, 2,679 of these are experiencing some form of difficulty.
Last Wednesday a modest size cruise company, All Leisure Holidays, ceased to trade with immediate effect and entered into administration which had the result of leaving hundreds of travellers stranded around the globe and led to the cancellation of more than 13,000 booked holidays.
However, this information should not be read on its own. Other reports show that the industry is performing well. For example, Gatwick is current hitting record numbers of people travelling through its gates. More than 43.1 million passengers used the Sussex airport during 2016 – an increase of 7.1% on the previous year’s figure of 40.3 million passengers.
The industry also appears to be adapting quickly to the events happening around the world. Whilst there are travel restrictions in popular places such as Tunisia and Sharm El-Sheikh, tour operators are laying on extra capacity in destinations such as Cape Verde, Dubai and Goa. Cruises are also becoming more and more popular with the customers getting younger each year and the ships getting bigger.
If you are planning on booking your holidays for this year, it would be wise to take note of the anticipated warnings in the travel industry but not let it put a damp squib on your plans. We would remind individuals to ensure that you have adequate protection if a failure event should occur.
We would recommend that individuals consider the following protection:
- Ensuring that your holiday is covered by an ATOL-protected agent.
- Paying your holiday via credit card as under the Consumer Credit Act you should be entitled to your money back if you have spent over £100.
- Checking your insurance documents to ascertain if you have Scheduled Airline Failure Insurance, particularly if you have booked flights directly with an airline.
If you are a business owner in the travel industry and you are beginning to notice the strain being placed on the industry please contact us for a free no obligation discussion.