Rise in consumer confidence boosting holiday market

It’s not surprising that given all the financial turmoil over recent years, consumer confidence in the tourism industry has been suffering. However, according to new research by Deloitte, it seems people are finally starting to regain confidence in their employment, which in turn is seeing an increased confidence in the holiday market.

Everybody needs a holiday but in times of trouble it is often the summer break that is sacrificed and seen as a luxury that can be lived without. This in turn affects the global tourism industry. However, the Deloitte Consumer Tracker shows that feelings about disposable income are improving which in turn is boosting the holiday market.

Trends for booking holidays in the first quarter of 2013 show that the figures for people spending money on holidays had increased by 3% on the same quarter last year. Graham Pickett, head of travel, hospitality and leisure at Deloitte said: “This year is expected to be the most traditional for a while for the travel sector.”

He went on to add that as a result of the cold spell there had been an increase in bookings for outbound travel. However, he did also add that concerns around currency strength and other financial factors are affecting the destinations people are choosing. Many people are choosing to book short breaks as a result.

On the whole, however, despite only marginal economic growth, many people are beginning to believe that a corner has been turned and that people will invariably start to book travel insurance and flights for the summer.

Graham Pickett says: “The consumer economy is likely to remain relatively subdued for most of 2013. However, there is a definite upward trend in sentiment, and the consensus view is that the recovery will gain traction as the year progresses.’ For the travel industry, this can only be a good thing. Maybe it’s time you started thinking about your holiday for 2013.”

Date Created: 03/05/2013