According to COVID-19 consumer survey, 59% of respondents globally are always or often influenced by how well a product aligns with their financial constraints.
The financial crunches will lead to travel postponements that can further lead to an increase in the travel costs. This could further slowdown the tourism industry’s recovery from the COVID-19 impact, says GlobalData, a leading data and analytics company.
Ben Cordwell, Travel & Tourism Analyst at GlobalData, says: “In the aftermath of COVID-19, there will be large number of people struggling to make ends meet. A shrinking world economy and mass unemployment will undoubtedly affect millions of people financially. This could lead to a greater number of customers postponing their holidays until they are more financially secure.”
Additionally, many of the costs associated with the tourism industry could be inflated due to the impact of the coronavirus outbreak. Social distancing measures on flights and cruises could see the costs of tickets increase greatly, pricing out some potential customers.
Cordwell concludes: “For the tourism industry to recover successfully a number of financial, operational and social issues must be addressed. This creates a Herculean challenge for all tourism companies in the months ahead.”