The worsening problems in the global banking industry continue to
dominate the news headlines, but has the demise of the most wealthiest
industry impacted the luxury travel and tourism market as yet? Juicy
was in Dubai last week, a place where it seems there is no shortage of
demand for high-end luxury hospitality and where new constructions on
the skyline are as guaranteed as the blue skies.
In the UK, there is still optimism. At a recent ABTA travel convention, Travelmole highlighted that the luxury end of the market continues to prove resilient for UK providers, with ultra luxury cruises set to record 2-3% growth into 2009. Luxury Travel Magazine also reported that the luxury sector will largely remain insulated driven by demand for experiences. However, airlines are already feeling the pinch of the financial turmoil, suggesting that luxury travel operators may be next. BA outlined that September sales of business and first class tickets were down 8.6% as reported on Bloomberg. As the high levels of redundancies in the finance sector take effect on the affluent's disposable income, the broader luxury travel sector could well experience some turbulence in months to come.
