The Travel industry has been slowly recovering since last year but it is expecting some set back due to the unrest in the Middle-East and North Africa.
Crude Oil price touched $100 per barrel recently, for the first time in 2 years. And, given the situation in the Middle East and North Africa, it seems the price will remain in this zone for quite sometime.
A recent report (NY Times) said the Airlines had increased their fares four times already as peak flight surcharge and fuel surcharge, to keep up with the rising oil prices. If the airfares are going to go up, it may only impact the Airlines industry, because consumers will try and avoid non-essential travels such as leisure. Cruise line industry will have an impact too, as they are pretty much ‘leisure oriented’. This will also have a domino effect on the Hotel industry too.
In any event, the events happening in the Middle East and North Africa need to be monitored carefully and companies need to adjust their strategies accordingly.
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