Travel to Europe Is Up, But Growth Is Slowing
by Harvey Chipkin /Americans may love traveling to Europe, but there are signs that growth in U.S. travel to the Continent is slowing down, even as the U.S. economy improves.
The culprit? Ever-higher airfares are an obvious factor.
But skyrocketing airfares aren’t the only issue, according to Neil Martin. Martin produces the Trans-Atlantic Report, a twice-monthly look at travel between the U.S. and Europe.
Travel Market Report talked to Martin about how he sees the market for travel to Europe and what it means for leisure travel agents in North America.
What’s the overall picture?
Martin: Traffic to Europe is up slightly, but fares are going up at a much faster rate than traffic is increasing. In fact, growth has decelerated recently.
The airlines are really focused on the business traveler and don’t even promote leisure. They operate more like bus companies and just talk about getting people there.
I’ve always felt that the airlines could charge even more if they promoted more. Even the destinations are not promoting the way they should to attract new customers. The emphasis on social media is not enough.
Has the turmoil in Ukraine affected travel to Europe overall?
Martin: Those figures are not broken down, but I don’t sense that is happening.
However, tour operators and river cruises lines are watching closely. Viking has a sailing scheduled to Crimea in May and so far is maintaining it.
What has been the impact of the weakness of the dollar against the Euro?
Martin: Interestingly, a strong dollar really drives people to go to Europe, but a weak dollar does not have that much of a negative effect. Travelers are simply more careful about their spending. And there are so many options once you get to Europe that it’s usually possible to stay within your budget.
What can agents do against the current backdrop to maximize sales to Europe?
Martin: They have to demonstrate to clients that they can get a far better value for their vacations than if the traveler does it on his or her own.
The agent has access to packages and information that the consumer doesn’t have – even with all the information available online. It’s up to the agent to show that they can deliver.
What’s hot to Europe?
Martin: River cruising continues to explode. Viking is adding many new ships and so are others. There is now concern about having enough room to dock in certain ports.