Brexit means….what to the Travel Industry?

As those in the travel industry know only too well, the pound has taken a big hit since last year’s referendum but Mrs May’s 12-point plan outlined this week (17 January 2017) has given sterling a bit of a lift. However it is still a long way from where it was before the referendum. The upshot is of course that today most people’s holidays are costing a lot more than they did before 23 June 2016.

The fact that President Trump appears to love us Brits might give us some comfort but trade deals are not created overnight and even if they were we could not sign one with the US before we have officially left the EU (it’s written in the small print apparently). So no immediate sterling-saving activity there.

I am no economist but, given that we have at least another 2 years before we are fully extricated from the EU, I suspect we shall continue with the bumpy ride of fluctuating rates of exchange. For me then Brexit still means uncertainty.

I wonder though, does the fact that we Brits are having to pay more for our overseas holidays actually cause a problem for those of us involved in the industry. Well according to the First Rate Holiday Confidence Index published last November, the answer seems to be ‘not really’ with just 14% of respondents saying that the sterling slump had put them off booking a holiday.

Indeed the report suggests that fear of terrorism and heath scares like the Zika virus are perhaps having more of a negative impact on buying behaviour than rates of exchange.

I understand from anecdotal evidence that the consumer might be more careful about the destination selected for a holiday based on currency rates but that of course will also be true of terrorism and health scares.

The fact is that the nature of the travel industry means that there is always an element of uncertainty from ‘how financially secure is that company?’ to ‘where is safe?’.

But then in life as in business there is always uncertainty and risk.

In my opinion our duty as travel professionals is to keep abreast of both general geo-political news and events as well as industry-specific news. More than that we should know the major destinations so well that if there were an issue in one part of a country or region we could judge the likelihood of that issue having an impact on another or neighbouring part. That does not mean of course that we can or should be the final arbiter of whether or not a customer visits a particular destination for that is the role of governments. Instead we should be giving suggestions, as well-informed advisors, as to how uncertainty and risk might be minimised.

Naturally product knowledge is something very close to our hearts at Travel Uni and as we explored recently, we strongly believe that through knowledge you can build trust.

The British travel market is generally very resilient and it bounces back from even the most terrible of disasters. In my opinion the holiday has become a right, rather than a luxury. Taking a holiday away from a Brit would be like taking a bone from a dog. The consumer will have a holiday come what may (or Mrs May J). Currency fluctuations, terrorism, health risks and the like might make them think twice about where they go but many will still go; and as trusted, well-informed travel professionals you can add value by guiding them in their choices.

Brexit might mean uncertainty but I believe the industry thrives on change and I am confident in our ability to weather this and any storm. But what has your experience of Brexit been so far: what has Brexit meant to you and your clients? Please share in the Comments section.

Source:
http://www.firstrate.co.uk/brits-remain-cautious-about-committing-to-holidays-abroad-but-are-far-more-confident-about-the-uk-economy/#more-1050

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