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Egypt Holidays > Travel News > ‘Holidays survive the slowdown'
‘Holidays survive the slowdown' | | 3rd August 2008 |
Travel company Thomas Cook, whose major customer contact centre is in Bradford, says people are still booking holidays in spite of the economic slowdown.
It says customers continue to consider an annual holiday a “must have” item.
And it is a similar message from rival travel giant TUI Travel, which owns Thomson and First Choice.
But the outlook for foreign holidays has been dampened by falls in the value of sterling this week which saw the pound reach its lowest level against the US dollar for nearly two years and also weaken against the euro.
Thomas Cook's chief executive Manny Fontenla-Novoa said: “In our experience, people will cut back on all sorts of other things before they cut back on their holiday.”
The firm says trading has been robust this summer and bookings for winter and next summer are strong. Turkey and Egypt are popular but a strong euro had deterred many holidaymakers from visiting the 15 countries that use the currency.
The company, which employs around 400 staff at offices in Aldermanbury in the city centre and at Birkenshaw, says that in the last six weeks of trading, its average prices have risen by nine per cent.
Business for its all-inclusive and up-market four and five-star holidays were up on last year by ten per cent and 13 per cent respectively.
But holidaymakers planning to escape the poor summer weather should expect higher prices and fewer last-minute deals.
Thomas Cook said it had cut capacity and had 14 per cent fewer holidays to sell than at this time last year, while average prices were up 14 per cent in the past three months. TUI Travel also said it was cutting capacity in coming seasons to “retain flexibility” should the economic slowdown begin to change consumers' holiday plans. |
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