An interview with Andy Cooper

An interview with Andy Cooper

Andy Cooper is the ABTA Head of Development and Director General of the Federation of Tour Operators

How is European tourism coping with the economic crisis and how does it function within it?
It is too early to tell whether the economic crisis will have a significant impact on European tourism.The crisis effectively started at the tail end of the summer 2008 season, and we will not really be able to form an opinion until we hit a peak booking or travel period.

It is true to say that there are a number of different market segments, and it is likely that the economic situation will affect those segments in different ways.

Looking at the UK outbound market, we would say that the leisure sector can be divided into 3 different groupings: traditional holidays, short breaks and Visiting Friends and Relatives (VFR). It is likely that the short break and VFR markets will be more immediately impacted by economic difficulties, as many of these breaks can be sacrificed, at least in the short term.

The VFR market will quickly pick up again when consumers have money available, but the short break market may be affected for longer. We believe that most customers will still take their main annual holiday, as this has become a social norm. They may choose to downgrade, by booking a lower standard of accommodation or by staying for shorter periods, and they may well book significantly later, but they will still travel. Consumers will be looking for value for money, and British consumers will also be impacted by the weakness of Sterling, particularly against the Euro.

How do you see the developments regarding business travel and the conferences and corporate meetings and incentives market?

There is no doubt that business travel will decline slightly during any global recession, and we are already seeing evidence of that from the reported load factors of the major European airlines in the past quarter. However, ultimately the only way to move out of a recession is for trade to increase, and with trade comes travel. There may therefore be a short term reduction in business travel, but it will undoubtedly return. We do however believe that all those in the business travel sector from travel agents to airlines to hoteliers need to expect short term pain, and therefore need to adjust their business plans accordingly. The biggest challenge will be to ensure that the short term lasts for as short a time as possible. This is equally, and probably more true of the MICE market. Conferences and incentives are a relatively high cost for many businesses, and an area in which they will no doubt be looking to make savings. We would therefore anticipate a downturn in this market amongst many businesses over the short to medium term.

According to the information available to date, Greek tourism shows remarkable resistance to the developments in the international tourism market. What image do you have of the future of Greek tourism?

It is true to say that Greece has remained loyal to its traditional tourism product, and whilst there have been some new developments in the Greek islands, there have been relatively few. This is fine, provided that there is a continuing investment in product quality and service. We are concerned that there are new destinations developments in areas like Egypt and Turkey which offer outstanding value for money as well as high levels of service, and these are increasingly strong competitors to Greek tourism. Greece does have a unique charm, and should capitalise on that, but needs also to recognise the importance of product quality and service and ensure that customers perceive that they are getting these. If this does not occur, then Greek tourism will have challenges in the future.

Have you visited Athens recently? If yes, what were your impressions of our city? What do you believe are the strong points for Athens as a city break and conference destination?

I have been to Athens twice in 2008. The improvements in transportation brought about by the development of the metro cannot be understated, as it has become significantly easier to travel round the city, and this has, for me, opened up Athens, making it a very convenient location for a city break. There is an interesting convergence of a modern city with a fascinating history, and this means that it works extremely well as a city break destination. The challenge in the UK market revolves around the distance from the UK, and therefore the availability of flights to Athens. Customers travelling from London and the South East of the UK have the opportunity of travelling with EasyJet as an alternative to Olympic, but that option is not available for the rest of the UK. In the current climate, prices will continue to be an issue, but this may change in the medium term. Continuing improvements to transportation within the city would be the biggest single factor which would help to increase sales of Athens as a conference destination. In summary, 2009 will undoubtedly be a challenging year for the travel industry, whatever sector a business is operating in.