AA Travel Insurance

December 10, 2009 05:25 ET

AA Travel Insurance Report on Travel Industry's Resilience During the Recession

BASILDON, UNITED KINGDOM--(Marketwire - Dec. 10, 2009) - A combination of rising fuel prices, a weak pound, and the effects of the recession are leading many Britons to cut down on the number of trips they are taking abroad, but crucially it doesn't seem to be affecting their appetite for travel overall, according to a report in the Daily Mail.

This supports the travel sectors belief that, in the minds of the public, a holiday is no longer a luxury but a necessity.

Most travel agents and budget airlines have responded to the difficult economic climate by reducing their prices and this seems to have enticed people to travel despite the recession. In terms of performance, travel agents including Thomson and First Choice, Thomas Cook and Tui Travel have all reported profits, as has budget airline EasyJet.

According to the Thomson and First Choice annual trends report, the future of travel looks bright. It found that despite the economic climate 80% of those questioned expected to take a holiday in 2010, and similar numbers said the recession would not make them change their holiday plans.

Nearly 50 per cent said they would use the recession to try booking a five-star hotel at three or four star prices and nearly a quarter said they would be looking for flights further afield for the same price as ones nearer to home.

A spokesperson for the AA said "The continuing strength of the travel industry despite the recession shows that people really do value their holidays as essential. Travellers habits might be changing, with people heading to less exotic destinations, and less frequently, but crucially they keep on travelling."

"Of course, whether you're planning on staying within the eurozone or venturing further afield it's important to take out proper travel insurance for your trip."

About AA Travel Insurance

The AA is not only the UK's premier breakdown service we also provide great value holiday insurance with cover you can trust.

Our secure website allows you to buy single trip travel insurance or annual holiday insurance online in just a few minutes, or if you prefer to talk to someone why not contact our UK-based call centre? Our call agents are available 7 days a week.

AA Travel Insurance is a division of Drakefield Insurance Services Limited which is authorised and regulated by the Financial Services Authority. Drakefield Insurance Services Limited is part of The AA.

For more information please visit http://www.aatravelinsurance.com.

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