Impact of falling Euro on travel
There's no question the falling Euro could be extremely bad news for many in the tourist industry but possibly good news for some consumers. Here's how it could affect major market segments :
- Air travel
The International Air Transport Association has issued a forecast suggesting that industry revenue, already downgraded to $3.5 billion from $4.9 billion, could turn into losses exceeding $8 billion if the eurozone financial situation melts down into a full-blown banking crisis and recession
- Hotels
According to Travelocity, a euro collapse would likely lead to fewer European travelers taking vacations on the continent, which could create an excess of available hotel rooms.
- Cruises
Luxury cruise that include Seabourn and Cunard are trying to get this year's cruises filled ahead of any potential crises.