Bargain holidays boom despite credit crunch crisis.
As the credit crunch crisis continues, we find that a lot of people are refusing to let their holiday time be affected. Many are finding ways to continue to holiday, whilst just making a few subtle changes.
Hostels, coach holidays and cheap destinations are relishing in the boom of the credit crunch, as most people are downgrading their travel plans for cheaper alternatives.
Skiweekends.com has reported a 150% increase on bookings from the same time last year and has increased capacity by 40%. It is running coaches to two new resorts, Chamonix and Zermatt and the managing director has confirmed “we are quite simply having the best season we’ve ever had”. Prices start at £179 for a 3 day weekend and £239 for a week.
Hostels are also experiencing a boom, with Hostelbookers.com confirming an 83% increase on bookings from last year. Meanwhile, the Post Office has reported significant increases in foreign currency for cheaper destinations such as Egypt. Sales of Egyptian pounds were up 50% in September 2008.
At the other end of the market, the downturn is already taking effect. British Airways says the number of first and business class passengers it carried last month was down 8.6 per cent on the previous year. Ryanair, by contrast, reported a 20 per cent rise.*
Travel and Leisure Analyst Andrew Fitchie, “the companies say that no matter how bad things get, people will always keep their main holiday, but they might cut their second and short breaks, which I think is true but you will also see people trading down. Were not necessarily looking over a cliff edge, but we are heading into unchartered territory”
Most ski companies have some protection against any potential slumps, because the most profitable weeks are traditionally booked up a year in advance. Many are now reporting that January holidays, traditionally the hardest to sell, ad so the cheapest, are now proving to be one of the most popular. Therefore if lots of skiers switch to January holidays in an attempt to save cash, this could force the operators into offering big discounts and last minute deals at other times of the year.
Adults who stopped holidaying with their parents in their teens are reviving the family holiday in order to save money and have childcare on tap according to Saga Travel Insurance.
Pre credit crunch times, the majority of people went away with their partner (35%), and 50% of all kids stop holidaying with their parents by age 16. However, it seems, to save on costs and babysitting that family trips are making a real comeback. 44% of people have now resumed holidaying with their parents, with the average age now 29. Grandparent’s role in the family is now more vital than ever, with many families relying heavily on them to babysit, so the parents can juggle the finances better. Andrew Goodsell, Chief Executive of Saga commented 'Everybody has different priorities when deciding who to go on holiday with. It is encouraging that a positive outcome of the credit crunch hitting younger travellers could be that families, including grandparents, are getting to spend more time together.'
*Source The Observer, Sunday 12, 2008