Luxury Operators Predict Upturn

Luxury travel companies are predicting an upturn in business next year –but expect to deal with a markedly different customer, according to a report by PricewaterhouseCoopers.

Internet-savvy deal hunters who will not stint on cost but do demand value for money will be the norm in 2010, the report, released at this year’s Abta Travel Convention stated.

It also found that luxury tour operators have managed to maintain margins and market share despite the economic downturn.

In a survey of more than 7,000 luxury club members when asked what items they would cut back on during the recession, only 18 percent cited their main holiday, which fell ninth in the selection behind designer labels, electronics, and restaurant meals.

And only a fifth of respondents said they would downgrade to a cheaper destination despite the squeeze on their investments. In a similar survey, polling all demographics, 41 percent said they would cut back on holidays and weekends away first. Holidays came second only to dining and nights out.