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Travel and tourism sector experiencing unprecedented levels of disruption in Summer 2016
11 September 2016

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The Telegraph 6 August 2016

Article by Ben Martin in The Telegraph


Lots of bad news for the travel industry this summer, especially in Europe and Africa:

  • Terrorist attacks in France, Belgium, Germany, Tunisia
  • Airliner bombing in Egypt
  • Failed coup in Turkey
  • UK Brexit vote
  • Air traffic controller strikes in France

Impacts - Negative:

  • Shares of airlines and tour operators have plunged
  • IAG issued profit alert immediately following Brexit vote.
  • easyJet costs have risen 40% since Brexit vote because of loss of value of the pound.
  • OTA Low Cost Holidays failed
  • Intercontinental Hotels RevPAR down 19.5% in Paris in 1H2016
  • Europe travel alerts issued in USA, Asia
  • Ryanair has had to reduce fairs by 10% to "stoke demand".
  • Thonas Cook has slashed Turkey capacity by 40% following coup attempt.

Impacts - Positive (?):

  • BHA: UK tourism industry could start enjoying benefits of the weak pound by year's end.

Impacts - Mixed:

  • Brits are shifting overseas holiday plans from "traditional" European destinations to "safer" destinations like Spain, North America, western Mediterranean.

David Boggs President/CEO ACRO Global|Publisher Tourism Marketer
David H. Boggs
ACRO Global

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