Recession Hits Exotic Vacations and Hotels

by Alfie FEATHERSTONE on August 24, 2009

The travel industry has suffered in the last year as concerns deepen over the global recession and the outbreak of the swine flu virus.  This pain has been felt by the entire industry, but the luxury travel businesses have felt the sting even more acutely as wary customers hold back on expensive travel.  One such company is Kuoni, who reported 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, are slashing prices in an effort to rejuvenate the dying high-end travel industry.  A drop of 21 percent from this time last year even has some members of upper management taking pay cuts in an effort to support 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 out of the woods of the ever slumping global economy.  “People are looking for great deals but that doesn’t mean cheap. Five star shows the greatest growth within our late sales,” according to Tamara Diethelm, who is the head of Kuoni’s department of late trading. 

Kuoni hopes to stimulate business by dropping prices on luxury hotels and even offering free upgrades on some flights out of the UK.

Thanks to the Times Online for the above quote.  For the entire article, please visit their website.

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