The failure of XL Leisure Group in September 2008 focused consumer attention on financial protection and has worked to the short-term advantage of larger agencies and tour operators, says market analyst Mintel. Its latest Travel Agents Leisure Intelligence report suggests: “The deepening economic crisis and further airline and tour operator failures are likely to lead…
XL collapse triggered new consumer awareness of protection issues
The failure of XL Leisure Group in September 2008 focused consumer attention on financial protection and has worked to the short-term advantage of larger agencies and tour operators, says market analyst Mintel.
Its latest Travel Agents Leisure Intelligence report suggests: “The deepening economic crisis and further airline and tour operator failures are likely to lead customers back towards familiar brand names.”
There is also likely to be “at least a temporary swing back to packaged products”, says Mintel.
However, only 15% of consumers surveyed for the report agree that booking with an agent “protects you financially”, leading Mintel to conclude: “Either agents have yet to really get this message across or it has less traction than [the trade] often suppose”.
For now, the report concludes: “Consumers will seek greater reassurance and cheaper online deals will become harder to find.” But it adds: “The challenge will be to retain this custom when the economy recovers and consumers regain confidence.”
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