Tourism

Security fears blight European tourism

Kit Rees - REUTERS

Europe’s travel industry could lose more than $US1 billion ($A1.4 billion) in revenues because of the impact of the Paris attacks, analysts say.

Keen to benefit from the positive factors, investors are focusing on groups that offer a wide range of destinations, can avoid places where safety is in doubt, and have robust enough finances to absorb potential shocks.

“Big companies may be better prepared because they have more … and further destinations that will be tempering the losses,” said Ipek Ozkardeskaya, market analyst at London Capital Group.

The full impact of the November 13 attacks that killed 130 people in Paris will become clearer with fourth-quarter results, but there is already evidence of a significant hit to Europe’s tourism industry, worth $US500 billion ($A700 billion), according to the UN’s World Tourism Organisation.

Hotel revenues in Paris are down 30-40 per cent from last year’s levels. Restaurant revenues have fallen by a similar margin, while new flight bookings to the city fell by 27 per cent in the week following the attacks.

That cost Air France KLM 50 million euros ($A75 million), while British bus and train operator Stagecoach last week issued a profit warning because of customer fears about trips to big cities.

“I suspect that we’re going to see a little bit more of a lingering impact for the travel industry,” City Indexmarket analyst Ken Odeluga said.

On the positive side, analysts cited tour operator TUI, cruise operator Carnival, online holiday retailer On The Beach Group, Ryanair and British Airways parent IAG as being able to weather the storm.

TUI said it was confident of increasing earnings by more than 10 per cent this year, after switching out of Egypt and Tunisia to focus on the Canary Islands and Cyprus.

With ships seen as less likely to be targeted in attacks, Carnival was cited as a good bet, while On The Beach Group could benefit from its focus on destinations like Spain, Portugal and the Canaries.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Cruise

Princess Cruises pushes back its pause on Aussie and Kiwi sailings

Meanwhile, Travel Weekly has had its pause on office drinks extended after a particularly bad incident involving a pot plant and copious amounts of slivovitz.

Share

CommentComments

Road & Rail

TUNE IN: New TV show to highlight Australia’s ‘Roads Less Travelled’

Get the popcorn ready and watch the client inquiries roll in because Network 10 is debuting a new show that places domestic travel front and centre.

Share

CommentComments

Aviation

“Offensive, grossly inappropriate” vaginal examinations of female plane passengers reported to Australian Federal Police

The federal government is demanding answers from the relevant authorities, after 13 Australian women were forced to undergo invasive medical examinations at an international airport.

Share

CommentComments

Hotels

NSW New England region gets its first five-star hotel

Bespoke leather bedheads, marble bedside tables and bathrooms, 4K smart TVs, Tesla charging stations… it’s fair to say this property has been pimped out.

Share

CommentComments

Destinations

Victoria celebrates second ‘donut day’, as tourism industry reacts to easing of restrictions

by Christian Fleetwood

Travel Weekly staff are enjoying a few Krispy Kremes in celebration of Victoria’s consecutive ‘donut days’, so much so that we’ve all had to undo the top button of our pants.

Share

CommentComments

Aviation

Aussie carrier launches direct flights between Canberra and Newcastle

Do you have a client who follows both the Raiders and the Knights in the NRL? Well, these new flights might tickle their rugby league fancy.

Share

CommentComments

Cruise

CLIA to showcase world’s great cruise ports and destinations

Has the current lull in cruising led you to forget some of the popular ports and destinations around the globe? Get reacquainted with them with this.

Share

CommentComments

Events

Have you seen the Travel DAZE 2020 agenda?

With Travel DAZE 2020 kicking off on Monday, start blocking out time in your diary so you can tune in to all of our fabulous speakers!

Share

CommentComments

Aviation

Cathay Pacific axes 8,500 jobs and ditches regional airline as part of major restructure

Some big changes have been announced for Hong Kong’s flag carrier, as it struggles to fly through the turbulence caused by COVID-19.

Share

CommentComments

Travel Agents

Why now is the perfect time to become a mobile travel agent

by Sponsored by MTA - Mobile Travel Agents

COVID-19 has been devastating for even the most experienced agents. But with the right support, resources and business model, you can take the edge off the pain and be ready for travel to return.

Share

CommentComments

Aviation

New research reveals Australia is losing $319m a day from lack of air travel

Want to know how much Australia’s economy is suffering just from a lack of domestic and international flying? Here’s the answer.

Share

CommentComments

Tourism

PATA announces new chair and executive board

The Pacific Asia Travel Association has revealed its new-look board in a very Brady Bunch-esque way.

Share

CommentComments