ABSTRACT
Europe's domestic and inbound travel and tourism industry is a vital and dynamic part of its economy. As an industry it is particularly responsive to cyclical economic change and consumer volatility, and is affected by the dual pincer effects of globalization. On the one hand, consumers have become increasingly sophisticated, with higher expectations. Lured by lower prices, they are increasingly looking to more exotic destinations. On the other, international players are taking advantage of liberalized markets and the lower transaction costs new technology has brought to move into Europe in order to escape their own mature, saturated markets. Less economically favoured regions are under particular threat, given their dependence on the sector.
