The Impact of Recent World Crisis on Travel Industry – travel news, tourism news
by fabolaThe Impact of Recent World Crisis on Travel Industry – travel news, tourism news
Article by Rajat Levesque Singh
The travel industry is influenced by the crisis in the economy worldwide. The soaring price of crude oil led to increased cost for . The travel industry had no option but to pass on their increased costs to consumers in the form of higher ticket prices. This was at the same time that consumers had less discretionary income for travel. Even though the price of oil has dropped tremendously, the airlines still predict multi-million dollar losses in 2009 due to the expected three percent drop in passengers.
Because of the banking crisis, carriers who were having financial difficulties have been unable to get the credit necessary to weather the economic storm. The British travel industry began to feel the impact when tour operator Travelscope and carrier MAXjet Airways collapsed at the end of the year in 2007. This illustrates one consideration that travelers have when making reservations: is the carrier going to be in business still when it’s time to travel? Many travelers are postponing making arrangements until the last minute, hoping that they will get a deal on last-minute fares, and ensuring that the carrier will be in business.
It is expected that the winter ski resort reservations will be down 9% for this year’s season. Economists point out that the traditional deterrent to taking vacations “can’t get away from work” has turned into “economic… Read the rest







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