Economic downturn will be the biggest challenge of the next five years, says WTM report

Economic downturn will be the biggest challenge of the next five years, says WTM report

More than half of travel trade executives believe that the impact of the global financial downturn on demand, price and profitability will be the industry’s biggest challenge over the next five years. The exclusive report, produced by World Travel Market (WTM), found that of 1200 respondents, the downturn had hampered demand, with three quarters feeling the effect on prices profits and margins. “The global financial slowdown has had a dramatic impact so far, and remains the largest and most consistent worry for the global industry over the next five years,” said WTM chairman Fiona Jeffery. “It is clear that the concern runs deep, with many worried about what will happen to the demand, with a similar number concerned about what happens to their bottom line.” Meanwhile, the report also predicted that hotels, which slashed their rates during the down turn, would struggle to recover their prices before 2014. The report also found that 45 percent of holidaymakers are looking to reduce their overseas travelling because of the increase of APD. “It’s shocking,” said Fiona Jeffrey, chairman of WTM, in response to the APD increase.

Gary Marshall
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Gary Marshall
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