There has been a large drop-off in Irish holidaying overseas this year, with city breaks taking a particular battering, writes BRIAN O'CONNELL
‘HAVE RECESSION, won’t travel” seems to be the mantra for many Irish holidaymakers in 2009. The latest CSO statistics show overseas travel during the first four months of this year dropped by 10.5 per cent compared with the same period last year. In the same four months of last year, the sector experienced a 7.9 per cent growth. The total number of trips abroad during the first third of 2009 was 2,119,200. This compares with 2,367,300 recorded for the same months last year.
But, according to industry sources, the drop in demand for overseas travel is actually much greater than CSO figures indicate, with some travel operators reporting business down 40 per cent on this time last year. So who isn’t travelling and why?
Clem Walshe, head of marketing at Budget Travel, says operator capacity last year was somewhere in the region of 950,000 overseas holiday places. This year that figure is down to 550,000, reflecting the dramatic drop in demand for foreign holidays.
“In the first quarter this year it is clear disposable income is down and people are carefully looking at their expenses. We are noticing that people are taking longer to book and are looking at potential holidays more carefully. It’s all about value for money,” he says.
Budget Travel is also noticing that Irish holidaymakers are returning to the tried and trusted destinations, such as Mallorca, Portugal and Crete. The tour operators say that, while overseas holidays are down, the family week in the sun is still sacrosanct.
“People are cutting back on costs but the annual family holiday is still important,” says Walshe. “What is not so popular this year, though, are ancillary holidays, such as city breaks to Barcelona or Rome, or shopping trips to New York. Also, ski holidays took a huge hit this year.”
Budget Travel isn’t the only one to have noticed a dip in the overseas market. Sunway Holidays says sales are down 40 per cent in the first quarter this year, with a reduction in demand for ski holidays a major factor. “Ski trips as a second holiday didn’t take off this year at all really,” says a spokesperson. “In terms of the summer, it has picked up in the last week or so, with all-inclusive deals proving popular this year.” The company also says cheaper destinations such as Turkey are proving a big hit, and sales to some resorts are up significantly. “We have increased our capacity and sales are up 30 per cent on this time last year to Turkey. It’s because the particular resort offers a four-star hotel on the beach and it’s hard to get the price anywhere else for that product.”
The trend towards the more familiar destinations has been backed up by other research this week from Mondial Assistance, which administers insurance on behalf of Aer Lingus and other European airlines. It says that, for July and August this year, there is a rise in the number of policies being taken out for destinations such as Italy, France and Portugal, but a decline in those for trips to the US. Some 28 per cent of the policies taken up by Irish people this year were for Spanish holidays, up from 21 per cent last year.
Alex Connolly of Fáilte Ireland says it expects added opportunities for the domestic market this summer, given the drop in overseas numbers. He believes that the market here is improving in terms of value for money and attractive special offers and deals. “You could look at the recent Volvo Ocean Race in Galway as an example of the potential for the domestic market. It was predicted that the event would get 140,000 visits over the fortnight and there ended up being up to 600,000. Travel from the UK and the US to Ireland is down, but there are great deals being offered including free spa sessions and accommodation. We still think this year will be a challenge to the industry though.”
The notion of families holidaying in Ireland to save on costs doesn’t wash with Budget Travel’s Clem Walshe, who says domestic holidays can’t compete with overseas trips for value. A few months back he took his wife and two kids to Co Clare for a weekend. “For a three-star hotel and dinner out a few nights and other day trips, the whole trip cost us the guts of a grand. Last week, the four of us went to Palmanova [in Mallorca] for seven days and didn’t spend more than €100 any night. I think the idea of holidaying at home, just to save money, is a myth.”