Though there has been a rise in deals which have significantly lowered tourist expenses, consumers should be wary of the fact that this would only last as long as the pandemic.
Tourism is one industry that has been affected by the pandemic. The industry which depends on in-person experience was plunged into comatose as governments restricted travel to curb the spread of the coronavirus. As a result, many tourists had to change their travel plans or cancel them outrightly as the world adjusts to life without travel.
This started an avalanche of refund requests which later spiralled into litigation as travel agents, hotels, vacation homes and airlines struggled to refund customers money for earlier bookings. The financial impact of pandemic resulted in a total revenue loss of $195 billion worldwide in the first four months of 2020. The World Travel and Tourism Council (WTTC) estimates the travel sector alone shrunk by over 70% in 2020.
Though the travel sentiment may seem at an all-time low, tourism experts believe that people would still travel after the virus. A lot of tourists, restless by the lockdown measures, can’t wait to get back to their favourite vacation spots and tourist locations. Cruise ships are reporting record bookings for summer 2021. This does not dispute the fact that travelling patterns, and by extension, tourism has changed.
However, while global tourism is still grappling with the effects of the pandemic, companies directly affected by the sector are devising various ways to survive. This has resulted in the emergence of lower travel deals as tourism-related businesses are desperate to lure customers back to hotel rooms, vacation homes, and passenger flights. Companies which are not able to offer low prices to stimulate demand and reduce their burn rate would be forced to pack up.
The dovetailing of the tourism sector has presented ample opportunity for savvy travellers who are taking advantage of cheap deals on hotels, vacation homes, airlines, cruises to achieve their vacation dreams.
Here are eight ways the pandemic has made tourism more cost effective for consumers.
Airlines have been badly bruised by the pandemic, which has resulted in a 90% decline in air travel. Most airlines had to depend on government bailout to keep their workers and prevent them from being furloughed or sacked. However, since the government has not been forthcoming with the much-expected stimulus, they had had to lay off their workers and implement pay cuts to reduce overhead costs and cash burn.