UK consumers can't do without their holidays
Despite the fact that the UK economy is still struggling and many consumers have found it difficult to fund their Christmas spending, it appears that holidays are top of the list when it comes to the spending habits of UK consumers. A survey by Thomas Cook, the holiday giant, confirmed that an annual holiday is top of the list of the vast majority of the UK population. So how will the holiday sector fair in 2010?
While 2009 ended on something of a downbeat note for the travel industry with the collapse of Flyglobespan and other companies hitting difficulties, all in all maybe 2009 was not as bad as many people had predicted. However, 2010 may not be as buoyant as many people are suggesting either, because of fears that the economy will stall amid signs that the UK property market is running out of steam. While many people will still scrimp and save for their annual holiday, there is no doubt that, if the economy does turn down, disposable income would be at a premium and the average holiday expenditure would likely come under pressure.
Further problems within the UK travel industry could also impact on customer numbers for the likes of Thomas Cook although there are hopes that an ongoing investigation into the Flyglobespan collapse may well reveal the inner workings of the industry and possibly assist in reducing similar problems in the future.
Share this..
Related stories
Scottish government calls for Flyglobespan probe
After receiving significant criticism in the financial press for effectively ignoring the issue of Flyglobespan, and the company's collapse this week, the Scottish government has announced an investigation into the fall of business. While there is no evidence of mismanagement or potential legal issues, the authorities are keen to learn from the collapse of what was Scotland's largest airline busin...
Read MoreUK economy is no Greek tragedy
Even though the Office for Budget Responsibility significantly reduced forecasts for UK economic growth in 2010 and 2011 thankfully there was a reiteration that the UK economy is no Greek tragedy. In reality the Greek economy has been storing up problems for many years now, indeed many EU members have highlighted this in the past, and the credit crunch and resulting worldwide recession literally t...
Read MoreAlistair Darling suggests rate cuts are not enough to refloat UK economy
While Alistair Darling has welcomed the 1% reduction in UK base rates by the Bank of England, he has also reiterated what many people now believe, that interest-rate reductions alone will not pull the UK out of recession. He has called for further increases in fiscal stimulus and as he suggested earlier in the week, the recent £20 billion package may well need to be increased and further revoluti...
Read MoreCould the UK banking sector tip into terminal decline?
The head of the British Bankers Association (BBA), chief executive Angela Knight, has suggested that the UK banking sector could tip into a similar decline seen in the steel and shipbuilding industries. Unless the UK government and UK regulators "go easy" on the sector in the medium to longer term there is the potential, in the eyes of the BBA, for the sector to tip into a very difficult and long-...
Read MoreCBI raises doubts about UK economic recovery
The latest quarterly survey from the CBI has highlighted the fact that many UK banks and building societies believe that the recent increase in lending will collapse in the first quarter of 2010. While many people are becoming more and more confident about the UK economy, due to the fact there has been an increase in lending over the last six months, many banks and building societies believe that...
Read More