The travel world is in trouble, with many struggling to make ends meet, the travel industry said on Tuesday.
The International Air Transport Association (IATA) said travel companies have been hit hard by a massive increase in the number of people travelling overseas, with travel costs going up by over 30 percent between 2016 and 2020, according to the IATA’s annual report.
In the same time period, average income in the travel sector fell by $20.5 billion ($36.9 billion) on a yearly basis.IATA said that this has forced many companies to reduce their staff levels in the industry and has caused some businesses to lose money.
The report noted that travel spending by the industry grew by 1.6 percent in 2016, but it said that has not translated into more revenues.
Travel travel revenue fell by 12.2 percent between 2015 and 2016, IATA said, with this due to a fall in domestic travel and an increase in international travel.
While the industry’s profit margins rose to 29.7 percent in the first nine months of 2017, this has declined to 27.6 per cent in the second quarter of 2017.
In 2017, the sector lost $21.4 billion ($34.5 per cent) to $38.6 billion.