'Travel companies defy economic slowdown'
29/05/2008(17:12)
Despite the economic slowdown travel services companies have continued to grow during the last three months, research claims.
According to a survey of more than 140 UK professional services companies by the Confederation of British Industry (CBI), the travel sector has recorded increased profitability while consumer services firms such as hotels, bars and restaurants have weakened.
The travel industry was the only consumer services sector to report a rise in business volumes over the last three months, the CBI said.
"Travel companies reported healthy demand for holidays in the past three months, with people more inclined to take a well-earned break as rising costs put greater demands on household spending," said Ian McCafferty, the organisation's economic advisor.
However, the report also found that travel firms saw rapid cost rises and as they were largely unable to pass these on to customers, their profitability fell at the fastest rate for five years.
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