Reduced travel demand concerns Greek tourism

Concerns are growing about serious turbulence in Greek tourism after warnings by Thomas Cook and easyJet that the reduced demand for travel services would have consequences on their financial results.

Brexit and the reduction of consumer confidence in key markets such as Germany are behind the current pressure on the sector, while there are also structural problems in the tour operators market. The major penetration of independent online platforms such as Airbnb and Booking.com have weighed on major operators' profit margins from holiday package sales, turning them instead to the hotel market, i.e. hotels that they own.

Yet the 90 percent slump in the Thomas Cook stock price in the last year and the 50 percent drop in its bond value is threatening to add new problems to the market, including Greece: Analysts such as Citi estimate it is a matter of time before...