In tough times for travel business, Europe holds steady
The U.S. travel industry is preparing for a painful holiday season as Americans reduce their discretionary spending. But in Europe the holiday season is holding up well, travel agents say, with people reluctant to forego their year-end break with family and friends.
That, however, is likely to change in the new year.
"January is still a question mark," said Fabio Cannavale, chief executive of Bravofly, one of three biggest European online booking agencies, which is selling 2,500 short-distance and 100 long-distance plane tickets a day. "What I expect are very good deals from airlines."
Americans who have yet to book a winter getaway are already benefiting, as hotels, airlines and cruise operators introduce last-minute deals to entice vacationers.
Holidays are the busiest time of year for most travel companies, a season when they command the highest rates for popular winter destinations.
In Britain, by way of contrast, though housing prices have plunged and recession has started to bite, vacations are not being canceled.
"The British regard their holidays as one of the last things they will cut back on," said Sean Tipton, a spokesman for the Association of British Travel Agents, or ABTA.
The disappearance in September of XL, one of the biggest tour operators in Britain, shrank the market's capacity by 10 percent, reducing the incentive for tour operators to cut prices.
"We have seen no widespread discounting," Tipton said. But he added that the January and February booking period would be crucial. "The people who've booked months in advance will be gone, and for the winter sun breaks between January and April, that will be the crunch period."
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Source - International Herald Tribune
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