Two recently published reports reveal both domestic and global concerns for the travel market and highlight that it is time to check what insolvency protection is in place. A report by Mintel on British Lifestyle reveals that foreign holidays are increasingly the domain of well-off consumers with holiday sales volumes last year falling to their lowest level since 2000…
Two recently published reports reveal both domestic and global concerns for the travel market and highlight that it is time to check what insolvency protection is in place.
A report by Mintel on British Lifestyle reveals that foreign holidays are increasingly the domain of well-off consumers with holiday sales volumes last year falling to their lowest level since 2000. The report also revealed that more than half of the consumers quizzed during the survey now book holidays on-line for a perceived better value, however a third admitted to concerns about travel protection when booking a cheap deal via an online operator they had never heard of.
The publication coincides with the International Air Transport Association (IATA) latest publication of Airline Financial Monitor for July and August, which report that falling share prices have resulted in financial markets cutting their valuation of airlines by around one-quarter since the start of the year.
The decrease comes from airline share prices falling as poor Quarter 2 profits are reported so far in 2011, down almost 60% on last year. Profits continue to be hit by factors such as jet fuel prices remaining up 50% on 2010, with the report predicting further deterioration in market conditions during Quarter 3.
IATA state that financial markets still expect airline financial performance to be hit more than most sectors in the expected weaker economic environment.
“It isn’t just the airlines who will be affected”, comments Michael Ward from International Passenger Protection Limited (IPP) leaders in providing insurance solutions to the travel trade, “less activity will affect other organisations who depend on travel and tourism such as accommodation or attraction providers”.
The government’s ATOL scheme is providing some comfort to holidaymakers who book a package deal, however it is estimated that over half of UK travellers will continue to fall outside of the protection by independently booking directly with airlines and other suppliers.
Protecting hard-earn money against airline and other end suppliers insolvency is possible at ProtectMyHolidays.com, which provides a tailored policy to match the travellers itinerary by insuring against the insolvency of specified airlines and other suppliers such as hotel, car hire, excursion providers, theme park etc.
Protect your holidays from the economic pressures, be safe and chose to tailor your insurance to cover financial failure for greater peace of mind.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
