Economy Tough on Exotic Vacations and Hotels

by William ASTON on November 6, 2009

The travel industry has been in decline over the last year as concerns grow over the global recession and the outbreak of the H1N1 virus.  Recent studies won’t help as numbers indicate that the swine flu may be surging once again.  This downturn has been felt by the industry as a whole, but the luxury travel businesses have felt the sting even worse as wary customers put off expensive travel.  One such company is Kuoni, who claimed a net loss of £29 million during the first half of 2009.

Kuoni, who specializes in exotic vacations such as safaris, as well as customized weddings and honeymoons, is slashing prices in an effort to breathe life into the dying high-end travel industry.  Many hotels and resorts around the United Kingdom have had to do the same, as all measures of money saving are being employed.  A drop of over 20 percent from this time last year even has some members of upper management taking pay cuts in an effort to stop the bleeding of the struggling company.

The most recent weeks have seen a slight increase in sales, good news for Kuoni, but not enough to declare the company is in the clear of the ever slumping global economy.  Some of the increase is due to the slashed prices, but a spokesperson for Kuoni says the five star business is the sector that has taken the hugest hit.  Kuoni hopes to stimulate business by reducing prices on luxury hotels and even offering free upgrades on some flights out of the UK.

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