Three lessons travelers can learn from the recent economic crisis

An impending financial crisis has not dampened the British public's appetite for travel

An impending financial crisis has not dampened the British public’s appetite for travel

The predicted descent into recession seems to have narrowly escaped. For how long, it’s unclear: Experts still fear rising costs could eventually shrink the economy. It feels more like a deja vu, with dangerously near-surface memories of Northern Rock and Lehman Brothers.

But an impending financial crisis hasn’t dampened the British public’s appetite for travel – Advantage Travel Partnership reported a 117 percent increase in sales this ‘Sunny Saturday’. So can the travel industry weather the storm?

It’s naturally more complex than that, but there are lessons to be learned from the disasters of 2008. According to a report by Tourism Economy, “under normal circumstances, even a slight recession will adversely affect travel volumes, especially with the recession experienced all over the world. a range of advanced economies.”

But these are not normal conditions, and so “the traveler is still coming for travel: growth will be slower than 2022, but recovery will continue.”

Travel is the last thing we give up

After the 2008 crash, people continued to travel, albeit with slightly wiser decisions. There was no food in the bistros by the harbor – instead, dinners were prepared in the accommodation with ingredients collected at the supermarket. The same instinct seems to repeat itself in 2023.

More informed decisions: more holiday goers prepare their own meals instead of dining out - Getty Images

More informed decisions: more holiday goers prepare their own meals instead of dining out – Getty Images

According to rental site Vrbo, more than half of travelers are looking for rental homes with well-equipped kitchens, saying it’s just as important as the destination. It looks like this pick will save an average of £417 per trip, which seems like an important cost-of-living compromise.

ABTA spokesman Sean Tipton thinks the habits in 2008 were indeed copied. “People tell us they’re much more likely to stop going to restaurants and the movies to be able to travel,” he says.

Paul Dales, UK chief economist at Capital Economics, agrees. “Ever since Covid has restricted travel for several years, people are re-evaluating what is luxury and what is necessity. I suspect a vacation becomes more important to many people. This means they can cut back on other items to cover the holiday that has been denied in recent years.”

The problem is, the 2008 recession did not follow a similarly devastating global event like the pandemic. The psychological ramifications of the last few years mean that we can’t quite match the last recession to the next, as our priorities have undoubtedly shifted.

There is a clear commitment to making the most of our ability to travel in public, and so to-do list trips – or trips that might seem trivial during a “normal” recession – are tastefully booked. Transatlantic travel fell 15 percent in 2009. This probably won’t happen again: ABTA data has listed the US as one of the top destinations for 2023, despite the obviously excessive exchange rate and flight costs.

“Of course there will be a percentage of people who can’t afford to go anywhere, and that’s very sad,” Tipton says. “But they’re not the majority. It’s pretty hard to apologize if you’re going through a tough time financially but haven’t taken your kids overseas in three years, we’re not going to Florida or Australia.

ABTA data lists the USA as one of the top destinations for 2023, despite the exorbitant exchange rate and flight costs - Alexander Spatari

ABTA data lists the USA as one of the top destinations for 2023, despite the exorbitant exchange rate and flight costs – Alexander Spatari

Finding comfort in old favorites

What about Europe? The industry was buoyed by low-cost airlines last time, but travel still fell seven percent. These operators are still around, and destinations like France, Spain, and Italy remain favorites, so the desire for a European getaway remains.

It will not be the decrease in the number of flights to the continent that will worry the industry, but the opposite: Operators are still affected by the double shock of Covid restrictions and the subsequent jump in demand. Recruitment and training process still It seems to point to a lack of capacity, so queues at airports and hotels with visibly understaffed will likely continue to be the norm in 2023.

However, other aspects of travel look better during a recession. During the credit crunch, the combination of cheap accommodation and affordable flights meant that emerging destinations like Turkey continued to grow.

ABTA’s Sean Tipton cites Costa Rica as a similar location: not exactly known, but quite adventurous and relatively well priced for the British traveller. During the recession, travelers from these destinations were also investing in overseas travel at a much safer rate than the rest of the world. While we’ll have to make do with cooking dinner in the villa, those from developing countries will have a perfect summer getaway.

closer to home

Perhaps the most enduring lesson of the recession was our reliance on reliable staying. Inevitably, a holiday in Britain will include rainy afternoons indoors and possibly feel overpriced. Total cost probably intent However, it turns out to be slightly cheaper than an overseas residency and thus remains attractive.

In 2009, Visit Britain reported an eighteen percent increase in stays. During the pandemic, this more than doubled. According to Marriott Bonvoy, 40% of British holidaymakers are planning to stay in the UK in 2023, so we don’t seem bored with them.

A piece of advice if you are instinctively embarrassed at the thought of taking a vacation on your own territory: this reluctance was present during the last recession; Significantly more than half of those vacationing in Britain said they missed traveling abroad but still enjoyed the experience.

This attitude seems to prevail. A holiday in the UK, complete with motorway queues and stormy weather, plus beautiful scenery, history, culture and charming main streets, is a financially affordable summer staple. A self-catering cottage in Britain might be the way to keep your getaway from stagnation this year, but if the thought of spending two weeks in the sun isn’t too overwhelming, you won’t be alone.

Do you have any money saving tips for your trip this year? Let us know in the comments below…

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