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Train sales fall due to public sector cuts
Public sector cuts have hit the sales of train travel, according to the latest figures from the Guild of Travel Management Companies.
Its quarterly transaction survey, from April to June, showed rail transactions were 2% down on the same period last year with 14% less (175,250 less) rail transactions made by GTMC members in the second quarter of 2011 than in the first quarter.
It is the first time in five years that rail transactions have dropped.
Chief executive Anne Godfrey said: “Overall growth in business travel is healthy and steady but the decrease in rail bookings is significant and would appear, as expected, that public sector cuts have impacted on this mode of transport, which has been so popular with civil servants.
“Rail was the first mode of transport to recover to pre 2008 levels, with increased transactions reported in every 2010 survey and a 10% growth that year. This dramatic drop in transactions will be monitored carefully in coming months.â€
Overall transaction increased by 4% on the same period in 2010, compared to a 10% growth in the first quarter of 2011.
The survey showed air, hotels and car hire all having healthy growth of 6%, 8% and 10% respectively, with GTMC members reporting that long haul travel to developing markets has contributed to the air growth, rather than short haul flights.
Last quarter the survey reported a decline of 6% for ancillary sales, including insurance, passport and visa services, seat assignment, baggage check-in and other value added services.
The GTMC said it would appear that this may have been just a ‘blip’ as this quarter reported a 6% growth when compared to the same period last year.
by Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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