Industry Research

What Does Brexit Mean For Business And Leisure Travel?

Posted on July 1, 2016

Long-Term Uncertainties Hang Over Business Travel: As talk of redrawing maps and shifting currencies escalates, uncertainty in the travel industry is a given. What happens to border control rules for business and leisure travelers? Visas for expatriate workers? Will United Kingdom-based airlines remain subject to EU regulations? Will U.K. citizens maintain EU passenger rights protections? Will Open Skies agreements with the U.S. be extended to the U.K.? How will new trade agreements affect business travel demand overall? All of these questions have to be answered as Britain negotiates its exit terms. Business Travel News article here

No Short-Term Business Travel Panic: GLOBAL stock markets may have been shaken by the Brexit vote JUne 23, but the state of business travel and MICE (Meetings, Incentives, Conferences & Events) appears to have escaped unscathed despite worries of an impending financial crisis with the UK’s economic instability. Leading global travel management companies told TTGmice e-Weekly that UK clients did not approach business travel and event plans with caution in the lead up to the historical Brexit vote on June 23, nor did they cancel or postpone any trips already made. TTG Asia report here

U.K. Travel Could Be Cheaper. . .: Demand for travel was already strong in the U.S., and the vote by the U.K. to leave the European Union will make it cheaper for Americans to visit their British cousins across the pond. Los Angeles Times article here

. . . Or Maybe Not: For the past 20 years, the basic rule has been that any airline based in a European Union country can fly anywhere within the single market whenever it wants. That access has driven the success of Europe's low-cost carriers. London's EasyJet, Dublin's Ryanair and Spain's Vueling have opened new bases and routes that crisscross the continent. Consumers have benefited from lower fares and more flights. Now the decision by U.K. voters to quit the European Union puts that all in doubt. CNNMoney article and video here

Brexit Could Hit Luxury Market Hard: Things are about to get even tougher for struggling luxury retailers, whO have already taken a beating due to a stronger dollar, slowing economic growth, and a shift toward spending on experiences versus goods. CNBC news article here

U.K. Hotels' Brexit Threats: Weakness in the economy translates into weakness in the hotel industry. That could spell trouble for hoteliers in the United Kingdom following last week's decision to leave the European Union. Business Travel News

International Visits To U.S. Will Likely Hold Steady: By now, many of us have seen the headlines, and are wondering what happens next now that Britain has narrowly voted to leave the European Union. My colleagues and I at the U.S. Travel Association have fielded many questions about the potential impact of this decision on the travel industry, particularly from areas that receive many British visitors. Despite some short-term market anxiety, international visitation numbers should not be affected in the long run. U.S. Travel Association commentary here

Related Topics: business travel, business trends, corporate travel, industry trends, international, leisure travel, United Kingdom

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