'CREDIT CRUNCH FATIGUE’ GIVES HOLIDAY COMPANIES A BOOST

May 14, 2008

The summer family holiday is bucking the trend of reduced consumer spending thanks to ‘credit crunch fatigue’ – as more of us book holidays to escape the doom and gloom at home.

The Co-operative Travel, the UK’s largest independent holiday retailer which sells three million holidays a year on behalf of all the major operators, reports sales are up 7% so far this year with no sign of demand slowing.

Mike Greenacre, Managing Director of The Co-operative Travel, says: “Feedback from our customers tells us that they’re fed up of reading and hearing about the ‘credit crunch’, and this ‘crunch fatigue’ is certainly helping to fuel demand. Those two weeks in the sun are an integral part of family life and are not about to be given up lightly, no matter what the financial restraints.”

The Co-operative Travel reports that this growth is good news for high street travel retailers, as they start to fight back against online competitors.

“One of the interesting trends to come out of this year’s growth in bookings is how well the high street is performing compared to the web,” continued Greenacre. “Feedback from customers shows that they are getting fed up with misleading online offers and are looking for expert advice to help make their money go as far as possible."

However, he warns that the increase in bookings may not be good news for those who leave it late to plan their trip abroad.

“With this year’s capacity reduced by an estimated 1.25 million holidays, the increase in bookings means that shortages are already starting to appear. The Western Mediterranean resorts in Spain and Portugal are already selling out and resorts in Greece and Turkey are also in increasing demand.

“This year will not be a vintage year for last minute holiday bargain hunters, and people should act quickly to secure their choice of dates and destinations