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If you’re like me and saw your investment portfolio take a hit in recent days/weeks, you might be doing some mental calculations of what you could have done had you sold before the market’s rapid descent had the ‘fasten seat belts’ sign on and some breathing through their oxygen masks.
It’s ‘woulda coulda shoulda,’ but let’s oughta for a moment.
What I lost could have paid for a nice cruise for two – balcony cabin, exotic itinerary, air included. It could have covered the cost of Cathay Pacific’s All Asia Pass, which we’ve been wanting to do for some time, with four or five cities plus hotel and meals. It could have sprung us to Europe or South America for a good walkabout, or put us up comfortably on a journey across Morocco AND Egypt.
The amount lost – both realized and on paper – could have done a lot of things. But it didn’t. That’s the reality of investing, that we have to take the down markets with the up. This is not to say that portfolios can’t be adjusted for the times – au contraire. Yet when the losses happen, we can only look forward.
Has the travel landscape changed, now that the US – and subsequently the global markets – are entering a recession?
Short answer: Yes. Though how much more so than its usual state of flux remains to be seen, and the change is nowhere near the level seen post-September 11, as that was not only an economic hit but a specific threat to travel.
Has the travel outlook changed for the worse in 2008?
Not necessarily.
If you’re from the States, the devalued US dollar has been an issue for a few years now, and won’t be going away for some time. Thus the mantra “travel smarter” has already been in your lexicon. Down-trending economic conditions in the US, as well as spiking oil prices worldwide, simply means that your resourcefulness will become a greater factor moving forward.
Let’s with the broad-level issues that may be within your control.
Consider, they say, consolidating your vacations. Rather than visit Europe twice in one year (as we’ve been doing recently), you’ll save on airfare by packing everything into one holiday. Of course, for those who live in North America, getting large blocks of vacation time isn’t always feasible. How about travelling off-season? You can save a ton in airfare and hotel prices, and enjoy your destination without swarms of crowds. The overwhelming majority of our time in Europe, for example, has been spent in low or shoulder seasons, and unless it's a great deal, we'll avoid June/July/August for the Continent.
Do your homework on air fares and hotels. Don’t just rely on Web 1.0 sites such as Travelocity or Expedia, online agencies who often do not have the lowest prices. Meta-search sites such as Kayak.com and Mobissimo.com have become a tremendous resource. Then check the Web site each of airline that covers the route you’re flying, as these will often have proprietary fares, specials, etc. And for hotels in particular, consider ‘gray market’ sites such as Priceline – a great resource is Bidding for Travel.
Back to flying. Consider flying out of and/or into nearby cities. The fare for Toronto to Vancouver, is often double or more than flying Buffalo to Seattle. And in Europe or Asia, search out the ‘low cost carriers’ that ply the same routes as legacy carriers at half the price or less – just be sure to read the fine print to figure out what extra charges you may encounter. Good tools for these LCCs include SkyScanner, WeGoLo, Attitude Travel, and Which Budget.
For travel to the Caribbean and Mexico, both cruises and all-inclusive resorts remain a decent value. Doing your homework on either of these – such as Cruise Critic or Cruise Compete for the former, and Debbie's Caribbean for the latter – can save money, yield better value, and provide for a greatly enhanced experience.
Finally, for today at least, think outside the box. Seemingly everyone wants to go to London or Paris. Prague has been “in” so long that it’s “out” now, and Vietnam is no longer a secret. Yet plenty of destinations offer outstanding sights, food, activities and accommodations without you having to pay a premium. In Europe, these would include the Baltic States of Lithuania, Latvia, and Estonia; as well as Poland, Hungary, Slovenia, and Croatia (though the latter two have been ‘open’ for quite some time, and all are seeing tourism rising sharply thanks to service by low-cost airlines). South America still has plenty of bargains, with world-class Buenos Aires standing out. And Asia is still very much affordable, with up-and-comers such as Cambodia high on the lists of some nowadays.
The world of travel is only expanding. For 2008, travel smart, indeed; but travel we will.
