Good or bad? Does it matter for the travel industry? You bet. Start advertising!
Let’s not pretend. That election results surprised everyone. Whether it’s Jason Westbury predicting the probable change of government, the exit polls and Channel 9 news stories that showed the Liberal party “simply could not win” or the betting agencies that paid out early…
It’s a bit of a surprise. The results for the travel industry might be even more surprising.
Elections are seldom a good thing for travel. The thought of a changing government and the “catastrophic” impact it will have on discretionary spending tightens the purse strings. 2019 wasn’t predicted to be a massive year in travel; softer economic indicators at home, Brexit, Trumpism and trade wars with China , lower housing prices… It was a bit more about tightening of belts, if that’s still a thing.
The Labour Party were predicted to win. Their policies were largely going to “cost” those with more discretionary spending capabilities than others; the same people who were going to start feeling a bit unsure about dropping $10,000 or $20,000 on their next family trip.
Unexpectedly, the hit to their hip pocket, which they have been buffering against for the past six months, didn’t materialise. With promises to fast forward tax cuts, the travel industry may well see a positive bump. The Liberal party victory, whether it’s good for the environment, good for jobs, good for your superannuation… Is going to give people the confidence to spend again. In the short term anyway.
With financial futures markets predicting anything between modest and brilliant gains for the sharemarket ahead, off the back of negative sentiments about this election outcome, it could well be a sweeter end to the financial year the Australian travel industry.
For travel agents?
The chance to make hay while the sun shines on this message probably runs until the end of the financial year. Get your message out there, get them onto a boat for a plane and having the time of their life.