Reuters has reported that the European travel industry could lose US$1 billion due to the effects of the recent attacks in Paris. The total industry is worth $500 billion, according to the United Nations World Tourism Organization.
Hotel revenues were down 30-40% right after the attacks, while new flight bookings to Paris fell by 27% according to the article.
It cost Air France-KLM $55 million, and British bus and train operator Stagecoach issued a profit warning on the back of weaker passenger demand to big cities.
It’s not all doom and gloom, however, as airlines will continue to benefit from the lower price of oil, other destinations and products could see increased demand, and many travel companies are strong enough to weather the storm.