We are currently living in unprecedented times of economic uncertainty. The rapid spread of the COVID-19 virus has made it necessary for a strict lockdown to be imposed in most countries across the world. The potential impact of this lockdown and the uncertainty surrounding when it will be lifted is having an enormous effect on the world economy, with many industries wondering how they will manage to get through the storm. Among the most affected of these industries is the travel industry, which has been hit particularly hard by a reduction in demand for vacations. Read on for five ways that COVID-19 is set to impact the travel industry this year.
- Flight Price Instability
Although we initially saw some incredibly cheap flights being offered around at the start of the crisis, ticket prices have since shot up as airlines look to compensate for low ticket sales. Many airlines have drastically reduced the number of flights they are operating in an attempt to cut costs. Some are now starting to show ominous signs of distress as they struggle to keep their businesses afloat amid record-low revenues. It now seems almost inevitable that a number of them will be forced to file for bankruptcy if they are not bailed out by government money. How the market for flights will look after the crisis comes to an end is anybody’s guess really, but it is entirely possible that ticket prices will come down dramatically when the virus scare is over. Keep an eye out for deals and you may find some unexpected bargains.
- Bargain-basement Hotel Deals
Being a hotel-owner at this time is a serious challenge. Beach resorts around the world which would normally be heaving with tourists are eerily quiet and are likely to remain so for the foreseeable future. The hotels that usually cater to the influx of holiday-makers are similarly desolate, having seen a catastrophic drop in demand. This low demand may present opportunities for travelers who are confident that they can predict when the crisis will end and going on vacation becomes an option again. By booking in advance now, you may be able to find some bargain-basement deals on accommodation for your next vacation.
- Travel Insurance Hikes
We have all been there; finally reaching your destination, only to come down with a nasty cold or flu within a few days of stepping off the plane. Bugs tend to thrive in the air-conditioning systems on planes, and there has probably never been a riskier time to get on a plane than now. Travel insurance companies are well aware of these risks and have hiked their prices accordingly. If you are booking a holiday now, it is a good idea to wait until closer to the time you intend to fly when prices will hopefully have come down before arranging your travel insurance plan.
With so much doom and gloom doing the rounds at the moment, we must keep sight of the fact that this crisis will pass. In the meantime, those who play their cards right in the next few months when booking their next vacation may be able to capitalize on fluctuating prices for flights, hotels and insurance.