Just read an interesting article from the States and was wandering if anyone has noticed a surge in cancellations? Crystal Cruises have stated that 75% of their bookings are being cancelled before the deposit due date.
I know most travel products over here require a paid deposit upfront, have people had an increase in cancellations even with the paid deposits?
Better news States side is that online travel spending has risen 5% in the first half of 2010.
I have created many websites, including for cheap cruises, cruise deals and a new one attacking cruise holidays.
No none at all. The main thing about most of the US market is that they have to pay more to use an agent, over here clients get it for free. So there is more of an incentive for the US to use the web.
Also if you break it down into what is actually being bought on-line, is it the cheaper dynamically packaged holidays, which in my opinion is the reason for the recent collapses. I think at the end of the day the consumer has to be careful how much they drive prices down, as if people don't make a profit, the clients deposits will disappear and Auntie ATOL will be left holding the baby time after time after time.
I love figures that say travel spend is up 5% on line,.... you note they do not say market share which has been dropping for a couple years now as more people use agents state side. Total travel spend now up 6% in the US to date, so guess that means online spend is down by 1 %... who knows.
As to cancellations, these deposit free "options" always had a high cancellation rate why they where stopped over here (in the UK) and I think the market is operating as normal.
Thanks gents, valid points.
No massive surge in cancellations yet, but that is probably because the deposit required is always higher for a cruise holiday and cruise lines allow customers to transfer their holiday to a different time as long as it is of the same value or higher.
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