Thus far in 2008, there have been mixed signals concerning investment in travel businesses. Most notably, weakening demand for travel and the associated high cost of oil has not been reflected in the appetite of venture capital investors who remain bullish on the long-term prospects of the online travel value proposition
New York (PRWEB) August 18, 2008
Hudson Crossing announced today that it has released its mid-year guidance for investors in the travel sector contained in the "Travel Investment 2008 Mid-Year Review" report.
"Thus far in 2008, there have been mixed signals concerning investment in travel businesses. Most notably, weakening demand for travel and the associated high cost of oil has not been reflected in the appetite of venture capital investors who remain bullish on the long-term prospects of the online travel value proposition" said Michael W. McCormick, Managing Partner, Hudson Crossing. "While not all of our earlier predictions for 2008 have yet materialized, many of the trends we predicted have been realized in the activity we've witnessed in the first half of the year" added McCormick.
Hudson Crossing summary findings for the remainder of 2008 include:
- Hotel rates will continue to decline as slackened demand creates continued price pressure on hotel suppliers.
- Venture capital will aggressively continue its investment activity in the online travel space. Recent acquisition activity in the first half of 2008 have made this segment even more attractive to venture investors.
-The credit crunch will continue to suppress private equity investment in the travel space. Look for renewed private equity activity in online travel in mid-2009 and beyond.
- The North Atlantic market for air travel will continue to suffer the effects of global economic weakness.
- Green marketing in travel seems has exhibited impressive staying power. The second half of 2008 will provide further guidance about its practical affect on travel buying decisions.
For access to the full report, please visit our website: Hudson Crossing
Mike McCormick is an accomplished senior executive who has successfully launched, funded, bought, sold, and led companies in the travel, search and media space.
About Hudson Crossing
Hudson Crossing is a strategic advisory firm devoted to helping business owners raise the financial performance of their travel, tourism and hospitality assets. Through the execution of bold ideas, Hudson Crossing's team of experienced industry executives bridges the gap between plan and performance, helping companies achieve important growth metrics through business assessment, course correction and translating strategy into outcome. Visit Hudson Crossing online at Hudson Crossing