Cheap flights are not a stand-alone product in the same way that ‘buy one get one free’ (or ‘BOGOF’) is not a stand-alone product, it is an add-on. Cheap flights can only exist alongside a healthy travel industry that is selling plenty of prime-priced products.
The decline of the travel industry, reduced profitability and rocketing fuel prices will no doubt put severe strain on cheap flight availability. Ryanair have already announced an 85% drop in profits and is predicting a loss or at best a break-even scenario at the end of the year. The blame is being firmly put at the feet of rising fuel costs, but is probably also attributable to a lack of spending and other credit crunch issues affecting people’s decisions to buy flights.
My cousin runs a UK Bed and Breakfast and she is already noticing how much busier she is getting as less people can afford to holiday abroad.
ReplyDeleteIt's not that much cheaper to holiday in the UK, but I think there is at least the perception of saving money by holidaying 'at home' even when it is still fairly costly
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