Will the economy hurt the travel industry much?

This article asks if the travel business is recession proof, but I don’t think it is. Obviously the industry can not die entirely, but it seems to me that people are cutting back on travel. Or at least they think they should be.

So while taking a vacation is certainly a priority (especially for us since we spend quite a bit of time on travel blogs!), people who have less money will spend less on travel. So whoever said “All the evidence going back to 1990 shows that holidays are one of the last things consumers cut back on. Things have got to get really bad for that to happen,” has to realize that for many people and many economies things are worse now than they have been since 1990. I’m no economic historian, but besides the internet bubble we haven’t faced too many recessions in the last 15 years, have we?

I don’t think that means trouble for everyone. For example Dubai depends on tourism money (though if that slows down you’d think oil money would be able to compensate) according to this article, but they try to attract fairly wealthy people who will still have money to travel. And that article seems to agree with me that the travel industry will suffer at least some:

For the next year or two, the travel industry is likely to find its long-standing customers in rich Western countries a less than reliable source of growth. As American families plan their holidays, many will be worrying about the frailty of their country’s economy, the rising cost of petrol and–for those venturing outside the United States–the weakness of the dollar. They are delaying booking in the hope of nabbing cheap, last-minute deals.

They are also writing in to USA Today about how to find the best cruise deals. One of the things mentioned there made me think for a second about my own NCL cruise this summer. One person said that you can book a cruise during peak season and tell them you’re willing to get bumped in hopes that they bump you and offer a free cruise in the future. I don’t think I want to get bumped but a free cruise in the future would be nice…

Anyway, what do you think? Will the economy hurt the travel industry much?

Filed Under: Travel discussion

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  1. Christle says:

    I agree. Common knowledge is that most Americans are not wealthy. The continuing rise of living costs make that more apparent. You are either wealthy or almost poor. Therefore, more people will consider vacations a luxury, not a necessity. It will be a matter of paying rent or mortgage vs. paying for a vacation. Vacationers will probably look closer to home, instead of cruising or far away places.

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