Airlines hold tight as Brits stay at home

Well, it’s happened. The price of oil has continued to rise (though I’m sure that World leaders were going to discuss the issue) – going from a still high $110 in May to, today, $147 a barrel – and the travel market continues to change accordingly.

Today’s news? Well holiday accommodation in the UK is expected to sell out completely over the coming couple of weeks (something I’ll be sure to keep check on) with areas such as Dorset, Somerset, the Isle of Wight and parts of Wales selling out fast according to Hoseasons. Not forgetting the old favourites Devon and Cornwall. Well, they have got some amazing beaches.

Remember Hoseasons? The company with the infuriating adverts: “We’re all going on a Hoseasons Holiday” to the tune of Cliff ‘I’ve got too many teeth for my mouth’ Richard’s hit. Well, they’re seeing a bit of a boom at the moment inline with Thomas Cook, as previously reported, with more people staying closer to home. Their chief exec Richard Carrick states: “We have found that more customers than ever before want to jump in a car with the family and avoid the hassle and increased costs of an overseas break.” Well, who can blame them, honestly?

Speaking from memories of childhood family holidays in the above mentioned areas, and a few taken as an adult, I can happily state that you’ll have a great time. This really is a beautiful country with a lot to offer, looks wise, and perhaps the change in travel for a while will allow more people to discover that. I know my colleague over on the Globetrotter Blog recently looked at the matter too.

Unfortunately for some, the same reasons that keep Brits at home are keeping airlines away. Iceland Express has postponed the start of its services from Gatwick to Reykjavik until next year. The airline was due to kick off a five times a week service in September but is now waiting until Spring of 2009. Why? Well, their marketing manager Birna Guðmundsdóttir stated: “Iceland Express is remaining cautious in the current uncertain economic climate, while continuing to deliver the best possible service at the best possible price. Iceland Express is a budget airline and we want to ensure it stays that way.” Good for them, even though it means putting off services they don’t want to pass the increase in fuel costs on to their customers. I just hope that it doesn’t mean continual delays or the demise of another budget airline.

It’s not just the smaller airlines suffering now though. British Airways, with a drop of up to 3.8% in traffic. Doesn’t sound a lot but when you consider how many thousands of people fly with these guys a day then the scale starts to seem a bit more worrying. BA had to increase their fuel surcharges recently and it seems that managed only to put people off flying with them.

“The UK consumer environment is difficult leading to reduced traffic volumes.” Well, the award for “Obvious Comment of the Week” goes to BA on this one. So why not get together with other big airlines and do something about it? Price fixing is illegal yet petrol companies get away with it. Why not push more into looking for alternative fuels, if all the Big Boys worked together they could get something done, right? No, seems BA are, instead, rumoured to be in talks with American Airlines and Iberia for a link-up. Great idea! Further monoplise the market, force smaller airlines out of business by taking all the take off and landing slots and then force up ticket prices.

Good business idea, just plain terrible morality.