Merkel advocates stricter travel restrictions in the EU
Travel stocks were assaulted Monday after Angela Merkel in place of restrictions on people traveling in the UK and also suggested that the EU should classify the UK as a “country of concern.”
The proposal by the German Prime Minister appears to be ongoing, and the fact that delta variants are so common in the UK it can be applied to those who have not yet been fully vaccinated.
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Boris Johnson is scheduled to meet with Merkel this week, but UK travel stocks plummeted on Monday.
At 3pm on Monday, IAG’s stock price fell 5.2%, EasyJet stock fell 4.5%, and Rolls-Royce stock fell 3.85%, along with other stock prices.
“The summer of 2021 was supposed to bring relief to the UK’s travel sector when the lockdown was lifted and the weapons shaking,” commented Danni Hewson, AJ Bell Financial Analyst. “Instead, it brought about more confusion and telling me there wasn’t a boost on the card for a big money booking.
Even if EU policies don’t come to fruition, holiday makers will need to read small prints of post-country bookings after Greenlight Country appears to line up changes requirements.
“Malta, Spain and now Portugal are changing their goal posts. I’m worried that Penny isn’t the only thing the British bring,” Hughson said.
“Travel agencies have reported a surge in bookings, but there have also been many stories of tourists wanting to hedge their bets, but many will decide to be careful and plump with UK bookings. There are too many, too little certainty. No parents are stuck at the airport with their disappointed children or spending their days off in one hotel room.”
The change to the Furlough scheme is a few days away, which can cause slippery within the industry.
“How much can airlines and travel agencies increase their small income, how long can they handle costs, and how much additional pressure will the new wage bill put in place? There’s no easy answer And it seems to raise more questions every day,” Hewson said.
