Holiday companies may have to offer huge discounts

It has been claimed that due to a drop in bookings holiday companies in the UK may have to start offering huge discounts on holidays abroad in order to generate interest from consumers and get the travel market moving again.

The recession and the financial crisis has resulted in many holidaymakers either deciding to skip their holiday this year or deciding to opt for a holiday in the UK to save money during this financially difficult time.

However, this has meant big losses for airlines and holiday firms, and has resulted in the need for holiday companies to cut their prices in order to make their trips more affordable for struggling holidaymakers that can no longer afford to splash out on going abroad.

Many airlines have already slashed prices, including British Airways, which recently launched a sale on flights to destinations all around the world, including the United States.

Many holiday firms are said to have been left with many unsold holidays for the peak periods of July and August, as many people can no longer afford to go at this time of year, when prices tend to be pushed up by astonishing levels in some cases.

Officials have said that unless these firms want to be left stuck with these holidays they will need to start applying discounts in the hope that consumers will find them more affordable and opt for them over UK holidays.

One industry official said: ‘The next ten weeks are critical. The late sales period of June, July and August will be key markets for most of us, and will probably define the financial situation for travel agents and tour operators for the rest of this year. If people stay in the UK and don’t spend their money, then we’re going to have a big commercial problem.’

Tags: holiday savings, cheap holidays, tour operators, travel market moving, United States