As a small business owner or manager, you may be wondering what type of impact Greece’s financial crisis will have on your business. From a decrease in imports and exports, Greece’s unstable economy has impacted financial markets worldwide. In particular, if you are in the travel and tourism industry, you may experience a significant loss in profit this quarter. Read on to learn more about how Greece’s financial crisis will impact your U.S. business.
Airline Industry Financial Impact
Airline ticket prices to Greece have dropped significantly these past few months. According to several sources, airlines have been forced to cut ticket prices due to an overall lack of travelers interested in going to Greece. Websites such as Skyscanner, Easyjet, and Opodo all report daily flight bookings to Greece to be down around 30%-35% in comparison to ticket costs in previous years.
European and U.S.-based travel websites are struggling to find travelers interested in going to Greece right now due to the financial crisis. Travel agents are using creative flight and hotel accommodation packages in an attempt to increase sales. As a U.S. based travel firm, if you primarily focus on Greek getaways for vacationers, you may want to look into other destinations for your clients this fall.
Be aware that there is speculation of Greece’s airports shutting down due to the possibility of government workers going on strike due to unpaid wages. This may make it more difficult and costly for your clients to get back to the U.S.
Tourism Industry Financial Impact
In addition to the airline industry, Greece’s overall tourism industry has also suffered as a result of the financial crisis and similar to the decline in airline tickets, villa rentals and hotel rooms are also being offered at half price. Several real estate opportunities have come to fruition this past quarter, though. Due to the financial crisis, foreign investors are now buying holiday homes on resort islands for less than half their market value.
Imports Into the U.S.
Imported products from Greece into the U.S. are down and labor strikes could lead to a disruption of shipments. If your U.S. small business relies heavily on Greek products, such as olives and olive oils, you may want to look into alternative products to sell in the event such strikes occur. Though products from Greece are now cheaper in the U.S., there may be disruptions in future shipments due to the volatility of Greece’s economy.
Hopefully the Greek government can come to a practical resolution to stabilize its economy in the immediate near future. As of now, if you are not in the travel and tourism industry, your U.S. business may not be significantly impacted by Greece’s financial crisis.