Recession Impact on Travel Industry
The travel industry has currently been affected by the recession in the global economy. The rapid increase of crude oil led to the escalating costs for bus lines, cruise ships, airlines and trains. The industry had no choice but to pass on their rising costs to consumers in the form of higher ticket prices. Another factor that contributed to the industry recession is the emerging of tourism from newly industrialised countries.
The travel industry began to feel the impact of the recession when several major tour operators collapsed during the end of 2007. In the reality of tighter credit availability today, most people will be taking shorter, fewer vacations close to home. Tourists expect to spend less on hotels, shopping and souvenirs, and meals and entertainment. These trends simply mean that tourist destinations must find a way to market their properties to prospective clients in their own backyard.
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