Travel Industry in Europe is recovering from the slowdown post-Britain’s exit from the European Union scenario. The weaker pound increased sales and brought some good earnings to travel companies. Despite the low Pound value, UK nationals travel to other destinations is healthy. The hotel bookings, tax-free shopping, air-traffic increased dramatically in the last quarter of the previous year.
According to HSBC survey, there is a significant increase of international travelers from Russia, China, and Brazil to continental Europe. The spending power of travelers is also bringing huge gains to the travel companies in India. Since the past three months, stocks of travel companies have performed well in the pan-European STOXX index.
Security fears have incurred loss worth $675 million to French hotels in 2016, after attacks on Paris. Slowly recovering from such conditions tourism industry has seen considerable growth in the last quarter of 2016. There is a significant increase in the tourism influx to Spain and London city has attracted travelers from within the European Union and other international destinations.
The weaker pound further allowed more number of travelers to spend more money on shopping. Luxury Goods makers Hugo Boss, LVMH and Prada cited high spending of international travelers from Asian countries.
Tax-free shopping in Europe is giving great strength to the people, which resulted in the increase in sales of 20 percent. Italy, Germany, and France have seen growth in the sales for the first time in a year. Whereas Britain market has seen an increase in sales by 45 percent, the average spending by a traveler also increased as they got the leverage of low pound value. Understanding the situation, Madrid, Spain’s capital is planning to bank on creating luxurious shopping to lure high-spending Chinese travelers.
The Air Line industry has reported an increase in traffic and passengers from 8 to 10 percent over previous year.