Bumpy road ahead

The Travel Industry Facing the Economic Downturn

The economic recession hit the world rather unprepared, even though it was predictable. Perhaps not in its severe impact but the development was not
surprising (see e.g. Kairos Future’s report on this from 2006: “Efter lånefesten”i). The current questions are dealing with the length and the depth as well as the
impact of the recession on different markets in the world in general, and on the tourism industry in particular. But also with the best way of handling status quo. In
this report we will apply both a short-term (next 1-2 years) and long term perspective (next 5-10 years) and we have chosen the following approaches:
• Which markets are more/less affected by the crisis?

• What is the likely development on different geographical markets/branches/ customer segments in the near and in the further away future?
• How will recession economy consumers behave, what is the best way to approach them?
• How does the crisis affect long-term trends?

This report takes an international perspective on this subject but lays main focus on the Scandinavian markets. We look at the different segments and branches of
the industry (e.g. business and leisure), from different perspectives (e.g. incoming and outgoing).

Published: 2009