UK Flight Searches Down 42% from Last Year

[Hostels]

Travel-Rants.com posted some thoughts on the drop in flight searches in the UK.

UK internet searches for flights have fallen by 42% compared to the first week in January last year.

Why do you think they are dropping? Are there fewer people from the UK at hostels this January compared to last?

[chuntuk]

I think it's a combination of factors.

People waiting to see if they still have a job before booking their holidays - several household name retail companies have gone bust here over the last couple of months, and it makes you nervous wherever you work.

People looking for the protection of an ABTA travel agent. I heard a travel agent interviewed on the radio the other day, and his business was UP on the first week of January last year.

I suspect - once people have taken stock of their situation - that they will still want holidays. And if their credit is a bit crunched, where better to stay than in a hostel? Get ready for a stream of first-time hostellers this summer!

[aboriginalhostel]

British people are quite panicked about the economy recession and unemployment predictions. No one knows if they can keep their jobs. UK government expects minimum 1 million unemployed only for this year, that's exactly double as much as the total unemployment so far and some say it is just the top of an iceberg... It started with financing companies and bank employees, then cutting on administration but as soon as this formerly wealthy citizens don't send as much, it affects the entire industry just like a butterfly effect.

Originally Posted by chuntuk

Get ready for a stream of first-time hostellers this summer!

I have a different provision... These travelers got used to hotel standards. They are looking for hostels as an alternative only because of the price, not to mention that they will never stay in dorms and not many hostels would have enough privates to cater them.

Also it would be naive to think about hotels will leave the business without any counter action. We are facing a huge price war, where hotels will be desperate to lower their prices as much as they can, as long as they can survive the recession. As I mentioned before, hostel private room rates often reach the 3 star hotel prices. If a 4 star hotel who is desperate for guests, will be able to manage their break-even point to such price, where will these possible guests stay? Where will our favorized flashpackers stay then?
Take a wild guess...

Just to help on your guess, it is about 20% of the accommodations are on the budget market (including hostels), the rest 80% is 4 and 5 star hotels.
Do you think they just gonna sit tight and wait until the recession is over?

(sorry for the rant! )

[Hostels]

Originally Posted by aboriginalhostel

These travelers got used to hotel standards. They are looking for hostels as an alternative only because of the price...

I think that many people who consider hostels as unacceptable "roughing it" might change their mind if they were introduced to hostels through positive media coverage -- if staying at hostels were something "cool" as opposed to "roughing it"... or if "roughing it" were something they could brag about when they got back.

I think borderline hostel/flashpacker people could be converted to genuine dorm bed hostellers with some convincing. I have some ideas...