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Message: Industry Outlook - Is Holiday Travel Recession-Proof?

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Re: Industry Outlook - Is Holiday Travel Recession-Proof?

posted on Jul 30, 08 07:09AM

Travel industries biggest challenge today is the rising cost of fuel and the decreasing disposable income. Depending on the view point - if the glass is half full or half empty so is the scenario. Major players who rely on international travel or outbound traffic from the US will see the revenue numbers decrease.

The other side of the coin is increase in domestic travel and inbound traffic to US. It is easy to make a statement broadly on any industry. The real issue is the company and the space it operates. Pro Travel revenue segment is domestic and as mentioned at various posts on this hub new offices envisaged in various international countries whose preferred destination is US is a good strategy. Operations within this space would enable PTVL growth. Economy in countries from which tourist originate are growing and in average more disposable income for these tourists.

However the single most important driver for tourists is the US dollar getting cheaper which makes US an excellent destination for tourist.

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