Is a Summer Vacation in Europe Out of the Question?
March 25, 2016
By Traveler Confidential Staff
IS A SUMMER VACATION IN EUROPE OUT OF THE QUESTION?
When the U.S. State Department issued a travel warning for the entire continent of Europe, some Americans were forced to reassess their summer travel plans. Government officials issued the advisory, which is in effect until June 20, after Tuesday’s suicide bombings in Brussels, Belgium where more than 30 people died. The move was reminiscent of November’s terrorist attacks in Paris, when the State Department issued a worldwide travel alert for U.S. citizens.
In the last six months, two major terrorist attacks have happened in Europe. The most recent being in Belgium and the other in Paris. The bombings have some Americans ditching their summer plans to vacation in Europe, according to USA Today. Tuna Amobi, an equity analyst at S&P Global Market Intelligence, talked about the downturn.
“Any time you have a terrorist scare, you see a meaningful slowdown in … revenues or room-night growth or booking,” Amobi said. “That’s kind of natural where consumers take a step back and assess the situation.”
Two heavy hitters in the online travel business, TripAdvisor and Expedia, said their revenues dropped after the Paris terrorist attacks. TripAdvisor reported a decrease in its fourth-quarter earnings by one to two percent. Meanwhile, Expedia showed less revenue before taxes and depreciation by $10 million to $15 million in the fourth quarter.
Experts say that whether or not a large percentage of American travelers bail on Europe will depend on two things: how long travelers focus on Brussels, and whether or not another terrorist attack happens again in Europe in the near future.