Tourism Prices in the Future
Today I'll leave it very short discussing about the topic of future expected prices in the tourism industry. To understand each concept we must separate the accommodation world, as it has existed nearly since we set foot on this planet, and the airlines world, which is something very recent and has a lot to improve still.
If we speak about hotels, I have bad news. The way society is developing makes us every time want more comfort and more luxury. This is seen by hotel owners and investors and every time more luxury resort properties are built and run to make good money. Prices will rise, even if competition lowers them, as they will be always able to make publicity of extreme comfort and services to justify the price.
In the case of the airline industry, I've got good news. Probably in Europe we won't see a big difference because prices are already the lowest they can possibly be, with some flights costing 0.01 Euros if you book early. Instead, in the rest of the World, and specially in North America and the South Pacific there is a lot to do and prices will surely go down.
A plane is seen very differently than a hotel and people want it to be efficient, not a luxury item. They want to go from one place to another for the cheapest price possible, and the most of the people do not care if they've got extra services and luxury. This is the main reason why prices will go down as competence is very high in the sector.
Still, there's a factor that will play hard in the years to come, which is the price of the fuel. I could not make a prediction on how it is going to climb or fall because I feel there are still many secrets hidden below the surface that will soon arise. In any case, we must keep an eye on it to prevent from future unexpected growing in airline prices takes could take us from the back.
After all, we'll always have the opportunity to get nearly free hotels by using Free Travel Certificates.
Tourism Prices in the Future
Sunday, January 20, 2008
Tourism Prices in the Future
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Europe is the most attractive tourist destination accounting for approximately 60% of the world market. Besides world touristic destinations such as Paris, London, Rome and Madrid, Prague is becoming the sixth most visited city in Europe. With 1,400 new rooms opened in 2006, it’s clear that CZ can't open hotels in Prague fast enough to meet demand – which partly explains why rates are traditionally so high. Sleeping here, unlike eating, carousing or shopping, costs no less than in Paris or Rome in most instances. However, the EU's market share in international arrivals has been decreasing over the last decade, despite that in 1997, European countries experienced a 3.2 per cent growth in international arrivals reaching almost 363 million (WTO 1998). The impacts of the introduction of the Euro, particularly the simplicity of the financial transactions, the increased transparency of the tourist market, the consequent overall improvement in the price-value ratio of goods and services, together with the increased competition should provide considerable benefits both for the tourists and for the tourist industry, thus should make Europe as a destination more attractive for visitors and investors alike.
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