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Money woes force Europeans to skip vacations

August 18, 2008 | Hospitality Industry

The European summer vacation just isn't what it used to be. With economies stagnating and inflation in the euro zone about 4 percent, people are cutting the length of their trips, vacationing close by and in some cases just staying home.

The deepening economic malaise has made many wary of splurging on expensive breaks. And would-be travelers have been hit by soaring costs in Europe for food, road trips and air travel—in short, just about everything needed for a successful vacation. Gasoline, for example, is the equivalent of $8 a gallon in France, and the fuel surcharge on a round-trip, long-haul Air France flight is as much as $418.

France’s main hospitality and catering union said in a report last week that hotel occupancy was holding steady. But it said there was a 20 percent to 30 percent drop in customers at cafes and restaurants.

Britons are also altering their habits. A survey for the Times of London reported that 58 percent of Britons were changing their vacation plans because of the economic downturn. Just less than 19 percent said they were canceling their plans completely, and 34 percent of the respondents said they canceled plans to travel abroad in favor of a cheaper trip within Britain.

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