Articles tagged “brexit”

Yes, Brexit is a big deal politically in the United Kingdom. But the decision should not affect the nation's airlines much.

The European Union revolutionised the airline industry in Europe, helping to foster the boom in cheap flights by creating a single market and doing away with bilateral agreements. How the UK extricates itself from this will be just one area to keep an eye on in the coming negotiations.

Would the world's second-largest online travel agency in market cap, Ctrip, entertain the idea of entering the U.S. market to complement its sites in mainland China, Hong Kong and Singapore? The x's and o's are unclear but the idea isn't as far-fetched as it might seem given Chinese investment in the U.S. and the Ctrip CEO's statements about his interest in the U.S. market

If the UK economy moves into recession, companies will look to slash their corporate travel budget. Full service carriers like British Airways are likely to take the bigger hit, which could benefit low-cost airlines like easyJet.

The outlook appears bleak for European travelers who were perhaps considering a U.S. trip this summer or later this year that hadn't already booked before the Brexit vote as search interest for U.S. hotel stays continues to fall well below last year.

According to Kayak's CEO, Airbnb is preventing traditional hotels from implementing surge prices, and Brexit is impacting tourism far more than recent acts of terrorism.

This is not immaterial to UK travel. They need Americans to (continue to) come flocking and spend as much as they can. As much as it may hurt, VisitBritain and other interests will need to pitch the potential big savings of their destination in the months ahead.

For now nothing will change, except significant spending power impact for British travelers abroad. And pestering questions from whoever meets British travelers along the way: what the hell were you thinking, UK?

Suffice it to say, everyone surprised by the outcome of the Brexit vote probably wishes they’d paid more attention to it than they did. Nevertheless, we probably won’t feel the immediate impacts of the UK’s exit until at least two years from now.