What now for the travel sector?

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Summer 2021 was supposed to bring salvation for the UK travel sector as lockdowns were lifted and arms were jabbed. Instead it has brought more confusion and a dawning realisation that a big money booking boost isn’t on the cards.

Shares in airlines, hotel businesses and travel companies have taken a battering today as investors rush to price in another twist in this long-running saga. Despite a number of popular tourist spots now being on offer to British holiday makers thanks to the government’s updated green list, it is precarious and it won’t mean a great deal if Germany gets its way and UK tourists are banned entry to the whole EU because of a concern over the Delta variant.

Even if that doesn’t materialise, holiday makers will have to read the small print of their booking after country after green lit country seems to be lining up change requirements. Malta, Spain and now Portugal are changing the goal posts, worried that pennies won’t be the only thing Britons will bring with them.

Though travel companies have reported a surge in bookings there have also been many stories of would-be-tourists hedging their bets and it’s likely many of those will decide to err on the side of caution and plump for their British booking. There are too many variables, too few certainties. No parent wants to get stranded at an airport with disappointed children or to spend their full holiday stuck in one hotel room.

With changes to the furlough scheme just days away there will be nervousness within the sector. How far can airlines and travel companies stretch their meagre incomes, how long can they juggle costs, how much extra pressure will the new wage bill add? There are no easy answers and every day seems to bring more questions.

These articles are for information purposes only and are not a personal recommendation or advice.

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Written by:
Danni Hewson

Danni spent more than 19 years at the BBC, presenting and reporting on business news across a variety of programmes – including BBC Breakfast, BBC News Channel, BBC Look North and latterly Radio 5 Live’s flagship business programme ‘Wake up to Money’. She is now responsible for producing analysis and commentary across a broad range of subjects at AJ Bell, from financial markets, to economics and personal finance.