Travel shares were down on Monday as it seems a ban on overseas holidays is not likely to be lifted until August, because of rising coronavirus cases in Europe.
Rising COVID-19 infection rates in Europe meant there are “challenges” around reopening international travel, Culture Secretary Oliver Dowden said on Monday.
However, Downing Street is mulling the possible introduction of a traffic light system to categorise different countries by the length of the quarantine period necessary for travel, Dowden told Sky News.
Under Prime Minister Boris Johnson’s ‘roadmap’ out of lockdown, the earliest date for people in England to go abroad for a holiday would be 17 May.
But the PM said last week it was “too early” to confirm new travel rules, with an official update due on overseas travel on 12 April.
Travel agents have reported a drop off in bookings following suggestions from other ministers about overseas trips, according to sector website Travel Weekly, after Johnson’s initial roadmap plans led to a sharp rise in sales.
New coronavirus laws include a £5,000 fine for anyone in England trying to travel abroad without good reason.
With domestic trips and staycations at home the only options for those taking a holiday for most of the summer, airlines including easyJet and Loganair have added domestic capacity for the UK market.
Hays Travel, the owner of the former Thomas Cook business, said recently it had seen strong demand for domestic UK cruise sailings for this summer.
Carnival PLC (LON:CCL) has launched what it says are “very special” P&O and Cunard cruises around the UK this summer, including a series of short breaks and week-long cruises going “wherever the sun shines brightest”, mentioning locales such as Land's End, Liverpool, Belfast and Newcastle.
Shares in easyjet (LON:EZJ) and British Airways owner IAG (LON:IAG) were both down 2% and Carnival (LON:CCL) on Monday, although online travel agent On The Beach was up 2%.