Brazil must travel less for outdoor, says Abav

Sao Paulo-the devaluation of the real against the dollar and the effects of the economic crisis should cause the volume of travel packages to the exterior closed by Brazilians shut down the second half with a drop of 20 percent over the same period last year, according to the Brazilian Association of travel agencies (Abav).
The retreat must have the same magnitude in the high season, at the end of the year, when airlines will probably have difficulty in raising ticket prices at the same level seen in 2014, according to the Vice President of international relations of the Association, Leonel Rossi Junior.
"The fall in the closing of packages has been greater because the tickets prices collapsed," he told Reuters. The airlines have practiced aggressive promotional fares to stimulate leisure travel client, seeking to compensate for the persistent public corporate downturn amid the slowing economy.
But they have indicated that the incentives have limit, in a period of high costs due to the impact of the dollar on the aviation kerosene--the American currency rose 22.64 percent against real since the end of June until the day before.
According to Rossi Junior, promotions have become a danger to the airlines, because consumers are expecting more attractive prices than usual in high season, putting off buying tickets rather than anticipate it. "I believe that airlines cannot go back to the old price (practiced in the high season last year) this year," he said.
The company Blue Air, for example, reported last week that a round-trip ticket to the United States was costing from 400 dollars, and may fall to 350 with promotions. This compares to about 800 dollars almost a year ago.
The company's Chairman, Antonoaldo Neves, said on the occasion that the international operation was barely profitable, almost a year after the launch of flights to the United States in December 2014.
The Brazilian airline company expect a cash deficit in 2015 of 7.3 billion reais, with 24 percent shooting costs about 2014 and income advancing just 3.7 percent, according to the Brazilian Association of Airlines (Abear).
For the Abav, with prices still low, demand for the u.s. is that should fall less in comparison to other international destinations. "You will fall, and has fallen more purchases in the United States. This is affecting mainly Florida, "said Rossi, Jr.
Central Bank data show that spending of Brazilians abroad in August, the latest data available, fell to 1.26 billion dollars, 46 percent decline compared to August of last year.
On the other hand, the demand for packages to travel inside of Brazil in the second half and in the high season points to a breakthrough between 7 and 10 percent compared to the previous year, amid some passenger migration international destinations to domestic destinations, according to the Conference.