How the Economic Crisis is Affecting Our Holiday Plans
How the Economic Crisis is Affecting Our Holiday Plans
It is no real surprise that the so-called economic crisis is causing us to think twice about going abroad in the summer, as well as having a knock-on affect on the travel industry as a whole. Yet, the consequences on what we need to consider before booking flights and choosing hotels are somewhat surprising. So how is the economic crisis affecting our holiday plans?
Car Hire
Perhaps the most recent news from the travel money sector concerns car hire whilst abroad. Recently, The Telegraph reported of a company’s futile attempt to hire a car at Easter: ‘booking very hotel had a room available, and there were seats on suitable flights. But when the company tried to book a car, it was told by its usual commercial partner that they were sold out. The customer couldn’t travel, and the tour operator, the airline and the hotel lost a booking.’ The reason for the lack of service was the need for hire companies to offer a cheaper service and so making their fleets smaller – a trend that is said to be happening in Spain, Sardinia, and Italy.
Transaction Fees
Similarly, banks and other institutions are changing their methods in order to retain profit in the wake of the credit crunch. As has been reported in The Independent during April, Nationwide and even Thomas Cook Financial have imposed transaction fees every time their credit or debit cards are used abroad. As a consequence of this, holidaymakers either have to make do with fees ranging from 0.81 to 2.99 percent on each purchase, carry around more cash, or acquire a travel money card especially for their trip.
Travel Insurance Hikes
Last but by no means least, the travel insurance sector has also been under scrutiny – by comparison sites at least. The informative site, , recently reported that certain companies (but by no means all) have been found to push up the price of travel insurance prices “overnight” when customers age from 65 to 66. In some respects, it is understandable why this is happening, yet it is when one acknowledges the cost of those increases – an average of 106 percent – that the hikes are regarded with such scorn by the press.
Interestingly, the economic climate and its affects on the travel industry are not causing people to cancel their holiday plans outright. For instance, many are seeing additional value and security with travel money cards, and are planning to use public transport as a means of getting around. However, it does seem that this summer will see more time spent planning our trips than in the cheaper, simpler past.…
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