Wednesday, 4 May 2016

Cheap holiday online deposits - could they come back to bite?

Have online travel agents made rods for their own backs in by battling to offer the lowest holiday deposits? In a fascinating interview published today by the trade publication Travel Weekly, Barclays head to travel Chris Lee questions whether customers paying deposits as low as £49 may be more relaxed about cancelling than those asked the shell out a sizeable amount in advance. On line companies can't be sure what level of cancellations they will get . On the positive side he notes that the market for holidays is strong - Lee is quoted as saying that without the security threat he UK travel sector would be having "a brilliant year - and that the agents involved have held back from offering low deposits on trips to destinations that have seen booking hit by anxiety over security, such as Turkey. One factor not covered in the report of the interview is the potential threat of Brexit. A serious slump n the value of sterling - something some economists are in any case calling for as a way of tackling the UK's trade deficit - could clearly be a trigger for wide scale cancellations.

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