EyeSight: View from the Market, October16

Falling Leaves, Rising Prices

As the leaves change colour, so the airlines wrap up their summer schedules and prepare for winter. What sort of a year has it been for the travel industry and what are the prospects for this winter and next summer? 

These are my views from the market place for the year so far which has seen record passenger numbers through the UK’s airports and on board cruise ships amid continuing low oil prices. 

Sterling’s Post Brexit fall will impact in 2017

The recurring theme this year was one of confidence due to the ever present threat of terrorism. This is unfortunately something we have had to live with but the close to home events of Paris, Brussels and Nice have certainly shaken confidence. 

Combined with Egypt being mostly off limits and Turkey feeling less secure - and that’s before the attempted coup. Add to this the post-Brexit era, the full effects which will not be known for at least a couple of years although the drop off in currency rates has made things that much more expensive. 

French ATC blighted Summer16

So who are the winners and losers so far? The Western Mediterranean, perceived as safe, has seen increased flight capacity and full hotels across Spain and Portugal. France and Turkey have suffered. 

The impact further afield is limited in the short term apart from North Africa and parts of the Middle East. The popularity of the USA will be tested next year if exchange rates stay where they are at present. 

2016 is a record for UK airports so far

Airlines have endured a tougher year than expected due to a glut of seats on the most popular routes as capacity was switched late from the low demand areas. Add to this French strikes and the collapse of non-bonded Low Cost Holidays.

Next year will see Jet2 Holidays launch from Stansted and Birmingham as the battle for market share hots up. Cost cutting continues with the disappearance of free snacks and drinks on British Airways short haul from January17 and a new charge to reserve seats on Emirates' flights prior to check in.

Cruise Ships-getting bigger and even better

For winter season, there are bargains to be had for early season ski and snowboard trips mainly due to last year’s lack of early snow. Otherwise a strong season beckons.

Winter sun holidays are still without Egypt but there are bargains further afield in Sri Lanka, Thailand, Malaysia and Indonesia  The Caribbean is also like to benefit from winter sun traffic as a ‘safe’ destination and deals are available across all budgets.

Long Haul destinations set to grow in 2017

Next summer is likely to follow a similar pattern to this year with some recovery for Turkey but prices will be higher as the Tour Operators will have fixed at current rates. 

All inclusive is likely to benefit as are cruise holidays which are gaining popularity with the family market with ever bigger ships. 

Long haul is likely to benefit from higher European prices especially Asia with comparable peak season pricing. North America may be able to absorb some of the price increases especially in Florida.

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Standard low cost packages are bookable through my multi destination EyeLine Travel website. 

All holidays that I arrange are ABTA/ATOL protected

david@eyelinetravel.co.uk
020 8123 2569




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David Sutherland

EyeLine Travel 
Crawley

6 October 2016