2016 was a challenging year for the travel industry with a number of factors having a significant impact on tourism. Restrictions on flights to Sharm El Sheikh and terrorist incidents in Turkey, Tunisia, France, Brussels and Munich all impacted on people’s choice of holiday and the destination they choose.
It’s likely that these uncertainties will continue through 2017 as we anticipate the following trends:
- Brexit
This topic has dominated the headlines although the reality is that it had little impact on the travel industry in 2016. However, the subsequent fluctuations in the value of the pound has had a significant impact on the expenses of holidaymakers. Eating out in restaurants, shopping and going on trips are now significantly more expensive as a result.
It’s anticipated that people will therefore look towards all-inclusive holidays for value for money and to manage their budgets. Research from the luxury travel company, Kuoni, has revealed that bookings for all-inclusive holidays has soared to 31% of all holidays booked since Brexit and it’s likely that this increase will continue through 2017.
- Domestic Holidays
It’s likely that domestic tourism will flourish in 2017, mainly as people look to avoid the currency fluctuations linked to Brexit. Domestic beach and countryside holidays are growing in popularity. Research by ABTA has shown that young families are most likely to take a domestic holiday with an average of 3.3 domestic holidays per person for this group compared to a national average of 2.0.
- Long haul city breaks
Research by ABTA illustrates that the city break is people’s favourite holiday. 53% of Brits took a city break in 2016 compared to 38% who took a beach holiday. Popular long haul destinations include Dubai, Hong Kong, Tokyo, Bangkok, Cape Town, Los Angeles, Boston and Washington. In 2016, Thomson Holidays also launched city breaks to New York, Singapore and Las Vegas so it’s likely that we will see long haul city breaks increase in popularity over the next 12 months.
- New destinations
Holiday destinations are a subjective topic which is part of the beauty of travel, people have different experiences at different times as no one place is ever the same. Experts will always tell us about the latest place which you ‘must’ visit but this is often linked to it either just being easier to get to as new airline routes open up or a major event being hosted.
Here are some of the experts’ popular destinations for us visit over the next 12 months:
Chile: At the 2016 World Travel Awards, Chile won the award for the most desirable adventure tourism destination with its extreme landscapes. The country is now starting to gear itself towards tourism with boutique hotels opening up and the wine tourism scene developing at a rapid pace.
Canada: 2017 marks the 150th anniversary of the Canadian confederation so the next 12 months promises to be one big party. Popular cities to visit include Vancouver, Toronto, Quebec and Montreal whilst the big landscapes like the Canadian Rockies are also well known.
Croatia: A place in Europe where your pound will go further with non-Eurozone prices. Popular city break destinations include Dubrovnik, Zagreb, Split and Zadar and there are also thousands of miles of coastline surrounded by crystal clear waters.
New Zealand: If you love Rugby then this is the place to visit for 2017. The British and Irish Lions tour in June and early July with three Tests against the All Blacks. There are matches all over the country giving visitors an opportunity to explore New Zealand.
Vietnam: New direct routes for 2017 means it is now much easier to visit Vietnam. A country of contrasts offering white sandy beaches, mountains, modern cities and ancient wonders.
What a difference a year makes! It’s clear that the last 12 months has had a huge impact on the travel industry. Global confidence has been shaken by Brexit and Trump’s election and travellers are therefore unsure about the economy and their future generally. People therefore feel uncertain and tend to play safe, particularly when it comes to luxuries like holidays.
If you’d like to speak to me about any of the topics covered here, or holiday claims in general, please contact me on 0161 713 5575 or complete our online form on our website and we will be in touch as soon as possible.
Michael Walker
michael.walker@jpswalker.co.uk
