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Thursday, July 18, 2013

Latest Research Report: Short-Haul Holidays - UK - July 2013

Allegations launched by the European Commission into Eurotunnel levying excessively high track access charges could also see passenger ticket prices fall – Eurostar currently pays Eurotunnel as much as £19 per passenger. The increased competition offered by Deutsche Bahn’s entry into the market could also serve to reduce cross-Channel ticket prices as both rail operators will be running direct services to Lille and Brussels.

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Executive Summary
The market
Figure 1: Volume forecast for UK short-haul holiday market, 2007-17
Market volume is expected to remain flat before returning to growth in 2014
Value growth is set to outpace volume growth as confidence improves
Figure 2: Value forecast for UK short-haul holiday market, 2007-17
Market drivers
Pound regains some ground after eight-month slide
Figure 3: Foreign exchange rate index, GBP against key short-haul destination currencies, January 2012-June 2013
High jet fuel prices weigh on consumer sentiment towards flying

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Figure 4: Jet fuel prices, GBP per gallon, April 2008-January 2013
The competitive landscape for Channel crossings set to intensify
Market share and segmentation
Independent segment continues to cede market share
Figure 5: Independent vs. non-independent short-haul holidays, by volume, 2008-12
Tunnel segment grew by 12.8% in 2012 to take a 10% market share


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