Indications of recession bottoming out

Thursday, 20th August 2009

In the travel industry, the International Air Transport Association (IATA) has noted that the decline in premium-class passengers is showing indications of stabilising: “Figures from the International Air Transport Association (IATA) provided a further indication the economic crisis was bottoming out but offered little respite for airlines battered as traditional business class passengers cut costs.”

PKF Hospitality Research reported about the accommodation sector: “Hotels that operate in the luxury, upscale, and midscale without food and beverage segments are expected to see customers beginning to re-appear in the fourth quarter of 2009.”

R. Mark Woodworth, the president of PKF Hospitality Research, commented: “With the budgeting process underway at hotels around the US, the recovery of lodging demand is an important milestone that will be reached in the year ahead.”

He went on to say: “The catch; however, is that the practice of price discounting has firmly taken hold, and, as a result, room rates are expected to decline once again in 2010.”

Last month’s IATA survey of global airlines showed that many carriers are not expecting to see proper recovery until the early part of 2011.

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