The holiday industry has been hit hard by the recession. One of the first businesses that fell victim was the high-profile case of XL tour operators. There have been many companies since that have revealed how they are struggling or not able to cope at all. TUI however, Britain’s biggest tour operator has revealed the first good news in a long time this month by announcing that its holiday sales are up on the previous month’s figures.Its due to people regaining some of their confidence about their finances according to chief executive at TUI, Peter Long. People realise they have more disposal income than they thought they would and want to give themselves some time out. “Customers who delayed purchasing holidays in the early booking season have started to return to the market” the company said.
Another element that probably has had an influence is low interest rates. Mortgage repayments have been cut down, utility bills are low and food cost are better than they have been in a long time. They means basically that outgoings are reduced and people are finding they have a little more money to spend on time out and enjoying themselves. The most popular destinations are the hotter countries, namely the Mediterranean and Caribbean destinations where people can just chill out and enjoy a bit of sun. All inclusive holidays are in high demand at the minute also.
Bookings are still down 7% on last year but this figure is a whole lot better than the 18% drop the rest of the year has shown. They have sold 93% of their winter holidays because despite the worst performing market currently being the Nordic region, holidays to Canada have been doing very well
TUI has said that this pick up represents a general improving trend in holiday sales. By the end of this holiday season we predict that purchasing levels will rise up to their previous levels the market regains strength.
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