Saturday, May 21, 2011

Europe too expensive for tourists

Great European cities are getting too
expensive for North Americans to visit.
Friends returning from Europe are all telling me the same thing - they're not going back!

Between the euro being so strong against North American currencies and the cost of everything - especially hotels and restaurants - being so high, they tell me Europe has priced itself out of their league.

And with the announcement this week that major carriers like Delta, KLM and Air France are cutting back on transatlantic flights - due to high fuel costs and empty seats - getting to Europe is going to cost much more thanks to the decrease in capacity.

Cash-strapped European countries, which have been closing up tourist offices in North America because they don't have the money to operate them, are facing stiff competition from the Asia/Pacific region, mainly China, where Canadian tour companies can offer great 2-for-1 deals (see http://www.toureast.com/ for examples) because costs of Asian hotels are so much lower and airline capacity continues to expand to that part of the world.

Europe has no one to blame but itself, of course. They thought they could keep raising prices and North Americans would keep coming. But, with the emergence of Asia, where most of the new hotels in the world are being built, and the aggressive marketing campaigns launched in Gulf Coast countries like Dubai, North Americans have been presented with lots of valued options that European countries like France, Italy and Great Britain just can't match.

This week the World Tourism Organization predicted China will soon replace France as the No. 1 travel destination in  the world - and I predict that in five years, three of the Top 5 spots on the organization's tourism rankings' list will be occupied by Asian countries.

North American travellers are looking for bargains - the continued increase in online travel bookings is proof of that - but Europe has none to offer.

2 comments:

  1. good analysis. really helped my decision in deciding asia or europe.

    ReplyDelete
  2. Plus, since your original post, Europe has gotten depressing in that the economic crisis is making Europeans down and dirty depressed. The financial situation for the average (non-German) European is in a bad way. Street scams, with theft and crime is way up. Crime stats not widely known (or made public) to scare tourists away. Americans need to visit the Canadian Rockies! Canadians need to visit The Grand Canyon in Arizona! FORGET EUROPE!!

    ReplyDelete