Fear Factor and the Travel Industry
Fear Factor is the most significant cause for decreasing travel demand in Europe during the pandemic.
Travellers were frightened of COVID once again on November 18 when the new variant was discovered: in reality, COVID infections had been rising in Europe for some time, and rumblings about a new wave of infections had been circulating, but the official announcement about the Omicron variant sent Europe into a tailspin. Fear Factor and the Travel Industry
The increase in infections has impacted the tourism industry directly: border closures, more restrictive border measures, and non-essential travel bans are well-known consequences of increasing infections. The new climate of tension discourages even visitors, who are now familiar with the defensive measures countries take to contain the pandemic. The number of searches for flights to Europe in the last two weeks (November 18 to December 3) fell by 14% compared with the previous period, from 61.8 million to 53.4 million. (Source)
We find that although the whole of Europe is affected by the new wave of contagion, there are some countries in which the market is reacting more dramatically, resulting in sudden drops in travel intentions. Certain factors influence tourists more than others. The countries that have suffered the most significant market contractions are not those with the highest infection rates, nor are they those where Omicron variants have spread the most; instead, the word ‘lockdown‘ seems to be the most frightening phrase for tourists. While there have been lockdowns in several European countries, the demand has been considerably lower than in countries without lockdowns, which might have worse health conditions than these countries. Fear Factor and the Travel Industry
As we used different sources for this text, we came to a couple of conclusions:
First, people constantly fight their fear and will to travel during the pandemic.
Second, a complete mix of information, requirements and rules for international or local travel.
The situation in Switzerland
Currently, the big question is: Has the recent chaos resulted in a weakening of demand? Our sources informally tell us that new bookings have plummeted in the last few days – presumably in anticipation of further information about Omikron’s new situation. Additionally, reports have generated a lot of uncertainty that infections are increasing in Switzerland, and compulsory testing is putting a weight on a cost in general. So do you think the current low demand is due to Omikron, fear factor or end of the year mood to take it easy?
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