Rising Prices Will Put Off People Going on Holiday and Slow Down World Tourism Recovery

RISING prices will hit any world tourism recovery after travel restrictions get lifted.

That’s the verdict of a survey conducted by GlobalData, which says that 59 per cent of those people quizzed said that future travellers will take account of any cost hikes in holidays and air travel.

The conclusion from the company is that an upward price trend will have a major impact on the ailing tourist sector, which has been badly hit by the coronavirus pandemic.

Ben Cordwell, Travel & Tourism Analyst at GlobalData, says: “In the aftermath of Covid-19, there will be a large number of people struggling to make ends meet. A shrinking world economy and mass unemployment will undoubtedly affect millions of people financially. This could lead to a greater number of customers postponing their holidays until they are more financially secure.”

Additionally, many of the costs associated with the tourism industry could go up due to the impact of the coronavirus outbreak.

Social distancing measures on flights and cruises could see the costs of tickets increase greatly, pricing out some potential customers.

Cordwell added: “For the tourism industry to recover successfully a number of financial, operational and social issues must be addressed. This creates a Herculean challenge for all tourism companies in the months ahead.”