Impact of economic slowdown on Travel Industry

The travel industry has been influenced and not able to keep apart itself from the heavy economic slowdown, seen in the last few weeks.

In the month of september all major airlines has shown a great decline in the list of daily passengers. The occupancy rates in the hotels falls. The all is creating a pressutre for new concessions. Domestic airlines has cut 8-10 percentof their domestic flights. This is not all, airlines are also planning to raise the fares. Fares are 15 to 25 percent higher on many routes than they were a year ago. But that portion of the strategy seems to have stalled.

British Airways, one of the major players on the intensely competitive trans-Atlantic market, said that its full-year financial projections were at risk because long-haul premium traffic declined 8.6 percent in September from September 2007.