Travel restrictions and strict social distance measures in the UK will cause a decrease in demand, which can lead to short-term price increases.
Travel companies in the UK experienced a significant decrease in bookings, impacting their sales and ability to provide accurate performance guidelines. Uncertainty about the future economic situation and job security has disturbed the confidence of travelers who travel frequently and cause them to stop booking trips in the future.
Operators are not aware of this situation, because holidays are considered an integral part of the lives of millions of Britons. GlobalData figures show Britain made 72.2 million trips abroad in 2019, with Spain topping the list of top travel destinations (15.8 million).
Britain, however, will suddenly no longer oppose holidays. It takes years to make changes in behavior like that. You are not at all comfortable to travel at this time and this leads to limited search.
The search you find leads to a short-term increase in the price of the trip
Given the nation’s love for holidays, searches for hotels, airlines, and vacation packages can suddenly increase as soon as restrictions are lifted and tourists make travel safer.
The British government bans all unnecessary trips and limited traffic in the country on March 23, 2020. This will help create more demand. Due to the limitations of daily life at this time, residents suffer cabin fever, so the desire to travel will be greater than before.
The dynamic pricing method is used
Hotels and airlines use a dynamic pricing method, where a sharp increase in demand versus supply causes a price increase. Tour operators who use dynamic pricing methods might see a decrease in demand as a way to offset lost revenue during COVID 19.
Holiday packages protected by systems such as ATOL will increase demand because travelers who are usually confident show the need for safe breaks in the event of an incident. The demand for travel insurance will also grow, with more complex policies covering broader demand / pandemic epidemics.