Elections are always disruptive to the travel industry and the prospect of another this year has dismayed many in the sector, despite a general mood of optimism.
The hung parliament outcome of last week’s general election in the UK could mean months of potential economic and political uncertainty, and there is reportedly talk in Westminster of another general election being called in the near future – as happened in 1974.
Miles Morgan, founder of Miles Morgan Travel, said: “[The outcome of a hung parliament and the prospect of another general election] is bad news for business. Forget political persuasions – it’s never good news for confidence, and therefore never good for business.”
Derek Jones, chief executive UK of Der Touristik Group, added: “More uncertainty is an inevitable consequence that is inevitably damaging… It depends on how the talks progress – that will define the outcome of economic uncertainty.”
Kate Kenward, Aito executive director, said consumer behaviour could go either way.
“Elections instil a wait-and-see attitude among consumers, but with so many referendums [and elections] of late, many could just continue making travel plans, come what may,” she said. “This is all new territory.”
She continued: “In general, Aito members are cautious business owners who are small and flexible enough to adapt to many business environments. However, currency fluctuations will have an impact on pricing and yield forecasting.”
The industry can take some comfort from oil prices remaining low – at below $50 a barrel, less than half the price of three years ago. This will help to offset any unfavourable shift in exchange rates.
