Rent, fuel, hotels… Prices are soaring.
Some economists are forecasting a recession in the near future. If this happens, it is important for travel agencies to be prepared. What do you do when a recession is looming on the horizon?
Recessions are more common than most people realize. According to the National Bureau of Economic Research (NBER), the USA has experienced a recession every six years since WWII.
Since the travel industry is based largely on leisure, vacations are generally the first thing to go when Americans feel the pinch of inflation. This hits travel agents right where it hurts.
Even though a looming recession seems scary and unpredictable, there are things you can do to recession-proof your travel agency.
We’ll show you how you can protect your business.
But first, what exactly is a recession?
What is a recession?
A recession is a period of time where unemployment rates rise, the stock market falls, and government debt increases. A recession is called when an economic downturn lasts longer than six months.
For example: After facing an economic downturn like the 2020 global pandemic, many travel agencies had to close their doors.
Prices dropped on everything – fuel, groceries, airfare, and hotels.
Now, as demand increases, prices are rising at an alarming rate as businesses across the globe try to recoup their lost income.
As Americans tighten their belts in preparation for another recession they may start cutting back on non-essential things, like vacations.
Because of the decrease in spending, staff is laid off and everyone suffers, consumers and business owners alike.
How can you prepare your business to face a crisis like this? Keep reading to find out how to recession-proof your travel agency…
