British Travel Industry Is Pessimistic

The UK travel industry is ‘pessimistic' and wants more Government support, according to research by Barclays Corporate.

In a survey among agencies, airlines, cruise companies and other travel suppliers, more than half (52%) said they now expect to see no growth in UK traveller numbers in 2011 at all, with a further third (36%) predicting a contraction this year.

The research, carried out at the annual Barclays Corporate Travel Forum last week, also revealed companies want the Government to do more, with 89% of respondents saying it is not doing enough for the industry.

However, despite the challenges, 2012 promises to be a more positive year, with more than 40% of those surveyed predicting an increase in traveller numbers, a jump from just 12% predicting an increase this year.

Over half (54%) of the businesses surveyed believe they will be more confident in growing their business next year, with only 26% expecting to be more cautious.

Chris Lee, head of travel at Barclays Corporate, said: ‘Whilst the industry's immediate outlook is far from rosy, it has always been a resilient and innovative sector. We are facing the most challenging conditions in decades and yet there is light at the end of the tunnel. By all accounts 2011 is expected to be flat, but in just 12 months time, there are significant expectations of growth.'

Over half of survey respondents expect to see their business grow by up to 10% in the coming year and a further 23% expect to see levels of growth of up to 20%.

Source: e-hotelier.com