Interesting Times…

There is a curse: “May you live in interesting times.”

These are, indeed, interesting times for both the travel industry and the global economy. As we, in the UK at least, find supermarkets now battling for the lowest fuel prices as Asda proved themselves heros, the effects of the most recent fuel jumps have had a pretty heft toll on the airlines.

According to BA’s Willie Walsh, the current climate is the “worst trading environment ever” as profits for BA plummeted by 88% . Last year’s second quarter profit of £298m has become a pre-tax profit of £37m this year. Mr Walsh states that “fuel prices have doubled in the past year.. fuel costs at £706m were up £233 in the first quarter. We expect our fuel bill to top £3bn this year – the equivalent of more than £8m every day.”

Also taking a plunge in profits is the ever-popular (if not ethical) Ryaniar. The budget airline is reckoning on a loss this year with profits in the first quarter dropping by 85% and a 93% rise in fuel costs. Michael O’Leary is determined, though, that the airline will stick to its no fuel surcharge policy.

Both airlines cite a decline in consumer confidence. With a lack of faith in money grabbing airlines, many are going for the cheaper options for holidays this year. Benefiting from such a trend, Eurostar have added an 11th daily service between London and Brussels from December. That’ll mean that there’s a total 7.500 seats available to Brussels each week. The high speed service has lead to an increase of 30% in passenger numbers, so time to brush up on your Flemmish.

Dust off the red coats this summer too as Butlins are also benefiting from the “R word.” The holiday camp company has seen a 15% rise in bookings and is expecting 150,000 through the doors at Skegness, Bognor Regis and Minehead.

As it’s Friday I thought I’d give you something new, a new word for your mental dictionary. The trend toward taking holidays within the UK, as mentioned before, has been dubbed the “staycation.” Superbreak are pushing for agents to embrace the trend. Could be a log to grab for safety in the flood if you ask me, with agents putting over £1.2 million on leisure breaks in the UK through Superbreak last week.

A closing thought, too…

Not so long ago, maybe as long as six months, I was asked what I’d do if I were in power – presidency or prime minister..ship – and I said that one of the first things I’d do was to take oil off the table. Completely. Force the change that we need to renewable and cost effective energy sources. Some companies would suffer (those who have far too much money and greed anyway) but mankind and the planet would benefit a thousand times over. It seems that with their continued greed in the face of an economic slow down the oil companies may just manage to do it for me.

With that, I’m off. For two weeks, infact. For, after spending all this time writing about travel and holidays it’s time for me to take my own. I’m going to try not to read any travel news and, as I’m out of the country, glancing at petrol prices, so I’m sure I’ll be in for a shock when I get back.

Bon vacance