Domestic Travel is up but Spending is Down

by Ella FAIRCHILD on November 11, 2009

It has been a rough financial year for many businesses around the United Kingdom.  Many suffered due to a recession in which the United Kingdom remains mired.  For the fifth consecutive quarter the economy in Britain has seen zero growth making this the longest recession in modern history.  One industry hit particularly hard by the recession is the travel and tourism industry, which is also battling against an epidemic of swine flu that has people afraid for their health.  Airlines are cutting flights, hotels are slashing prices, and all within the tourism industry are looking for new and innovative ways to draw customers.

One good result, according to a recent study, is that people around the United Kingdom are using the recession as an excuse to visit family and friends.  According to CSO’s most recent Household Travel Survey, domestic visits to loved ones and friends rose significantly last year, as most people decided to opt against expensive travel abroad.  A seventeen percent increase was seen in domestic visits to friends and family, and the total amount of domestic trips rose by nearly ten percent.  These staycationers are making up for some of the losses suffered by the lack of tourism.

The numbers weren’t all good, according to the study business trips were down by over four percent, and those people that did travel kept a tight grip on their money.  Even though domestic travel was up, domestic spending actually fell by over two percent, which shows that people are being careful with their money, even on holiday.

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