Author: Buy2Greece
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Buy2Greece.com – IATA – Strong Demand for Air Travel Rises in 2014
The International Air Transport Association (IATA) announced global passenger traffic results for the full year of 2014 showing demand (revenue passenger kilometers or RPKs) rose 5.9% compared to the full year of 2013. This 2014 performance was above the 10-year average growth rate of 5.6% and the 5.2% annual growth experienced in 2013 compared to 2012.
Capacity rose 5.6% last year, with the result that load factor climbed 0.2 percentage points to 79.7%. All regions saw demand grow in 2014. More than half of the growth in passenger travel occurred on airlines in emerging markets including Asia-Pacific and the Middle East. In recent months domestic market growth played a large role in driving growth. This is owed mainly to a pick-up in Chinese domestic travel which expanded by some 11% in 2014 over the previous year.
Dec 2014 vs. Dec 2013 RPK Growth ASK Growth PLF International 6.3% 6.5% 78.3 Domestic 5.8% 5.8% 79.4 Total Market 6.1% 6.2% 78.7 YTD 2014 vs. YTD 2013 RPK Growth ASK Growth PLF International 6.1% 6.4% 79.2 Domestic 5.4% 4.3% 80.6 Total Market 5.9% 5.6% 79.7 “Demand for the passenger business did well in 2014. With a 5.9% expansion of demand, the industry out-performed the 10-year average growth rate. Carriers in the Middle East posted double-digit growth while results in Africa were barely above previous-year levels. Overall a record 3.3 billion passengers boarded aircraft last year—some 170 million more than in 2013. While it is clear that people will continue to travel in growing numbers, there have been signs in recent months that softening business confidence is translating into a leveling off of international travel demand,” said Tony Tyler, IATA’s Director General and CEO.
International Passenger Markets
International passenger traffic rose 6.1% in 2014 compared to 2013. Capacity rose 6.4% and load factor slipped 0.1 percentage points to 79.2%.
- Asia Pacific carriers recorded an increase of 5.8% compared to 2013, which was the largest increase among the three biggest regions. However, traffic has been broadly flat over the past four months or so amid signs of a slowdown in regional production activity, although trade volumes have remained strong. Capacity rose 7.0%, pushing down load factor 1.1 percentage points to 76.9%.
- European carriers’ international traffic climbed 5.7% in 2014. Capacity rose 5.2% and load factor rose 0.6 percentage points 81.6%. Robust travel on low fare airlines as well as airlines registered in Turkey offset economic weakness and risks in the region.
- North American airlines saw demand rise 3.1% in 2014 over 2013. Among developed economies, the US is the standout performer. Capacity rose 4.6%, dropping load factor 1.1 percentage points to 81.7%. This was the highest among all regions.
- Middle East carriers had the strongest annual traffic growth at 13.0%. The region’s economies continue to show robust growth in non-oil sectors, and are therefore well-placed to withstand the plunge in oil revenues. Capacity rose 11.9% and load factor climbed 0.8 percentage points to 78.1%.
- Latin American airlines’ traffic rose 5.8%. Capacity rose 4.7% and load factor climbed 0.8 percentage points to 80%. While Brazilian economic growth has stagnated, regional trade volumes have improved in recent months.
- African airlines experienced the slowest annual demand growth, up 0.9% compared to 2013. With capacity up 3.0%, load factor fell 1.5 percentage points to 67.5%, the lowest among the regions. The weakness in international air travel for regional carriers is not believed to be attributable to the Ebola outbreak, the impact of which has been restricted largely to Guinea, Liberia and Sierra Leone, markets that comprise a very small proportion of traffic. Instead it appears to reflect negative economic developments in parts of the continent including Nigeria, which is highly reliant on oil revenues. South Africa also experienced weakness earlier in the year.
Domestic Passenger Markets
Domestic air travel rose 5.4% in 2014, with all markets showing growth, led by China and the Russian Federation. Capacity rose 4.3% and load factor was 80.6%, up 0.7 percentage points over 2013.
Dec 14 vs. Dec 13 RPK Growth ASK Growth PLF Australia 0.2% -1.0% 76.6% Brazil 11.4% 9.7% 80.9% China P.R. 13.9% 12.3% 77.3% India 12.5% 0.4% 84.7% Japan -0.6% -0.6% 62.2% Russian Federation 7.0% 7.3% 66.8% US 1.7% 3.6% 83.7% Domestic 5.8% 5.8% 79.4% - China’s domestic air travel rose 11.0% in 2014, helping to drive global air travel performance upward. The strong result occurred despite signs of a slowdown in the Chinese economy and industrial activity although consumer spending remains robust.
- Russian domestic traffic climbed 9.8% last year but with the economy on the brink of recession, growth rates are expected to sharply decline in early 2015.
Ihe Bottom Line:
“In the aftermath of the Greek elections and the intensifying debate on how to deliver a dynamic economic program for Europe, we must not forget the power of air connectivity to create growth. Governments can kick-start economic development by reducing the passenger taxes that depress demand for air transport, costing jobs and prosperity. There are some positive signs. The Scottish government is promising to cut its air passenger duty by 50%. And Austria’s air transport levy is being evaluated as part of comprehensive tax reforms. Scrapping the Austrian levy alone could create some 3,300 jobs. That should help convince politicians in these countries to move from considering reductions to delivering results. High taxes, onerous regulation and infrastructure limitations make Europe a tough place to run an airline. A continent-wide commitment to address these issues so that aviation can play its critical role as an economic catalyst would be a powerful signal that Europe’s politicians really do mean business,” said Tyler.
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Buy2Greece.com – Time to buy a home abroad? Where the strong pound meets inexpensive housing
Property prices are recovering – and your pound will go further. Telegraph Money research reveals where people are looking, and where the bargains can be found
Data compiled for Telegraph Money shows a surge in interest among British buyers looking to buy abroad, driven by the pound’s new strength against the euro.
Buying a €500,000 Italian property, for example, now saves £26,041 compared with January 2014.
The euro has weakened against sterling because of fears over quantitative easing, designed to rescue languishing European economies, and a possible standoff between Europe and Greece. All this has pushed the pound to a seven-year high, boosting the spending power of sterling buyers.
Now, 48pc more Britons are searching for property in Spain and Ireland than a year ago, Rightmove data shows. Interest is also up elsewhere. In the United States it has increased by 38pc.
Our extensive research, presented in the charts, below, shows which countries balance cheap exchange rates with inexpensive housing, using official figures from Eurostat, the EU’s data agency, and the OECD.
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HiFX, a foreign exchange firm, echoed Rightmove’s data, registering a 27pc rise in inquiries from Britons who want to buy property in the eurozone. Buyers shouldn’t delay, experts say, as the pound could weaken as the general election draws closer.
“A hung parliament will inevitably leave markets uncertain as to which political party will govern the country and the pound is likely to weaken,” said Andy Scott of HiFX.
Sterling also buys more currency outside the eurozone. Marianne Gilmore, of foreign exchange specialist Moneycorp, said that now was a good time to buy Polish zloty or Croatian kuna, where exchange rates are far better than in 2014.
Sterling doesn’t go quite as far now in Switzerland, following the country’s decision to float its currency free from the euro. In mid-January £100 would have bought 155 Swiss francs, now this sum buys 137 francs. With prices for a small chalet in the Alps starting at around £2.5m, Swiss property is further out of reach of British buyers.
See also: One country you haven’t thought of – where your pound now goes 30pc further
Where property buyers are searching – and what the market says
Country Annual increase in property searches (per cent) Typical mortgage rates Annual change in house prices, December 2014 Undervalued or overvalued by OECD? Ireland 48% 5.25% 15% Undervalued Spain 48% 2.75% 0.3% About right France 41% 2% -1.2% Overvalued Italy 41% 3% -3.8% Undervalued Greece 32% Restricted lending Not tracked Undervalued Portugal 22% 5% 4.9% Undervalued Sources: Rightmove, Simon Conn, Eurostat, OECD
What next for prices?
Property values across Europe are on the rise again, according to figures from Eurostat. The most dramatic increase was in Ireland, which saw 15pc annual price growth towards the end of 2014. Michael Grehan from Irish estate agent Sherry Fitzgerald said there was every reason to expect further increases.
“This will be particularly evident in urban centres where supply is most constrained,” he said, particularly for three and four-bedroom homes.
Monaghan, a county near the border, saw a threefold increase in interest from British buyers over the past year. Estate agents estimate that rural locations are undervalued by as much as 60pc and therefore offer strong investment potential.
Portuguese property values rose by 4.9pc from 12 months ago, a far cry from the end of 2013, when prices increased by just 0.6pc.
In the second quarter of last year Spain saw its first growth since 2011, a 0.8pc increase. Murcia, which is in the south-east and popular with British expats, has seen the biggest increase in property searches (75pc more than last year). Currently, the average budget for a British buyer in Spain is £379,000, higher in Barcelona (£556,000) but lower in Lanzarote (£109,000).
French and Italian markets are struggling, with prices in France down by 1.2pc, and 3.8pc lower in Italy. Experts say a lack of interest from wealthy foreign buyers, such as Russian investors, has had an effect, disguising an otherwise strong property market.
Roddy Aris of Knight Frank International said: “We expect to see ‘super-prime’ property prices continue to come down in 2015, after a 7pc price drop across the French Alps, but the core market will remain buoyant.”
http://cloud.highcharts.com/embed/yxizop/1
The Eurostat House Price Index shows strong growth in Ireland and Portugal
Undervalued markets
Housing markets in Italy, Ireland, Greece, Portugal and Germany are said to be undervalued, according to two main measurements used by the OECD, last collected in May.
The first uses a price-to-rent ratio, which measures the profitability of owning a house. The ratio is compared with the long-run average to see if it is higher or lower.
The second ratio plots prices against wages.
“There is a growing sense that prices are low by historical standards and that there is a considerable upside for early investors moving into these markets,” said Liam Bailey of Knight Frank.
For overpriced property, the data points to Britain and France.
House prices in the US, also viewed as undervalued by the OECD, have staged a strong recovery. But property is still cheaper than in Britain, despite a strengthening dollar. The average UK house price of £250,000 buys a seven-bedroom home in Davenport near Orlando, Florida. Mr Bailey said: “The US is looking interesting and New York, Miami and LA should take off in 2015.”
Country Annual rise in real terms Price vs rents Price vs wages France -2.2% (2013) 129 128 Germany 5.1% (2013) 91 83 Greece -7% (2013) 84 103 Ireland 4.3pc (2013) 96 92 Italy -5.5% (2013) 93 108 Portugal -1.5% (Q1 2014) 83 94 Spain -4.9% (2013) 104 107 UK 3.5% (2013) 134 125 US 6.6% (2013) 104 90 OECD Data, May 2014, where 100 indicates house prices are in line with rents or wages
MAP: countries with the cheapest and most expensive property markets
Falling mortgage rates
You can borrow at home on rates as low as 1.19pc for a two-year fix. Many may remortgage against a pumped-up UK house price to fulfil foreign ambitions.
Costs abroad are higher – but falling. Europe’s central bank, with its official rate already at 0.05pc, will drive down market rates with its QE plan.
In France the best 15-year fixed rates have fallen to 2.55pc and should fall further.
Simon Conn, an overseas broker, said: “British borrowers are increasingly interested in Spain, the Balearics and the Canaries, where interest rates are around 2.75pc and lenders expect a 30pc to 40pc deposit.
“Italy is still flourishing, with Umbria and Tuscany more popular, due to interest rates of around 3pc, not as low as France or Spain.”
In Ireland, where lenders remains cautious, borrowers must pay a 50pc deposit for holiday homes, and 40pc for buy-to-let, with rates at 5.25pc.
Borrowing in an undervalued market, such as Greece or Bulgaria, can be nigh impossible, Mr Conn warned. “Greece is still very restrictive on lending, unless the property is worth at least £1m, but this may improve in 2015.”
Outside the eurozone, expect to pay 3pc in the US and 4.5pc in Australia.
– One country you haven’t thought of – where your pound goes 30pc further
How much are British buyers willing to spend?
Country Most popular destination Average budget of a British buyer Ireland Cork £134,000 Spain Andalucia £379,000 France Aquitaine £202,400 Italy Toscana £107,000 Portugal Algarve £397,000 Bulgaria Burgas £24,000 USA Florida £135,000 Source: Rightmove, December 2014
– Follow Telegraph Money on Facebook and Twitter
– kate.palmer@telegraph.co.uk
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Buy2Greece.com – Vacation Rental Scammers (Fraud?)
Their response to my request for completion of my Guest Information Form, and a legible copy of driver’s license. Instead received this. “Greetings; Thank you for replying, It would be great to get a reply from you. we are currently not home, due to my company project at Russia. we would love to conclude all the reservation process soon. I’ll make arrangement for a bank check to be sent via regular mailing in other to ensure our reservations. well i can only instruct a bank check in Dollars to be issued for easy cashing at your bank since i don’t have access to either a pay pal account or bank transfer, so please bear with me. Reply With necessarily information. we will be needing the above information…Your Full Name,Billing Address {Not P.O.Box}CityState,Zip codePhone number / Cell phone. Beware! They gave me no info, but wanted all of mine.
Get back to me as soon as possible….. -
Buy2Greece.com – How To Tips For Managing Rental Properties
And I thought the stock market was crazy! Over last couple of years with the massive recession and the meltdown of the financial markets the stock market has been a wild roller coaster ride, so much so that I decided to take most of my investments out and transfer it into real estate investing.4
Yes, I know that it’s a terrible time to invest in real estate and in fact the real estate bubble is one of the main reasons why we are currently in such a massive recession here still in 2010. But my thinking was that prices have dropped so dramatically in the real estate market that now is probably the best time to buy when everybody else is panicking and selling.
One thing that I wasn’t ready for was the craziness involved in managing rental properties which, to tell you the truth, can be even more insane then the wild stock market roller coaster! Luckily I’ve come up with a few ways to make managing rental properties a little bit easier and I thought that I would discuss them with you today in this article so that hopefully you don’t have to go through the same crazy things that I’ve gone through!
So basically there are several things that you need to have set up in place in order to make managing your rental properties run as smoothly as possible and I’m going to discuss several of those things today.
The first thing you need to have in place is a solid repair and collections policy. You should use a move in and move out condition form that will allow you to record what your unit looks like before and after a tenant has lived there. This should protect you against property damages and things like that.
Not only does it help you but it also helps the tenant because they will also fill out these forms when they move in which will allow them to note any damage that is in the apartment that they are not responsible for. I’m talking about things like broken mirrors or stained carpets or peeling paint or things like that. You can then use this same form when tenant moves out to compare and contrast the current condition of the apartment.
I also mentioned a collections policy which you should be very upfront about with all of your new tenants. This policy will explain what happens if a tenant is late on rent. It will spell out the different fees that are involved and also lay out the process for eviction and state when that will happen.
Another thing to have set up in advance is a good record keeping system. This will include things like operating income as well as expenses that will relate to every specific property that you own. It will also keep track of any maintenance as well as repairs and even employee activity and tenant information. If you have a small operation with only a few rental units then you can get by with just a notebook or a spreadsheet program but for larger operations you may have to purchase special accounting software that will manage all this for you.
Unfortunately we don’t have much time to go into any more tips but these few that I’ve given you will certainly put you on the right track and ease some of the burdens and some of the headaches that go along with managing real estate investments.
By John Barney
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Buy2Greece.com – How social media implies business for travel companies worldwide?
Social media is the most engaging medium for global travelers and for travel companies, social media means business. A recent report from Facebook and Deloitte explores the enormous opportunity of using the travel experiences shared by travelers worldwide in generating leads and understanding traveler preferences.
Social media leader Facebook is perhaps the largest community in the online networking paradigm. Consequently, the section ‘travel’ is quite a big community. Travel companies can track, trace and use the ongoing interactions, engagement and experiences shared on Facebook for future analysis and growing travel trade.
Facebook and Deoloitte collected impressions from 10,400 social media users and indentified some of the following key metrics of social media that can be used by the world travel industry:
Social media ranks second to friends and family as source of travel ideas.
- 76% of social media users have a dream trip list, but only 8% have been everywhere on the list.
- OTAs have a 37% share within this cohort.
- Reviews continue to maintain importance in the travel process: 68% say reviews give them the confidence to book.
- Holidays/vacations were the third-most reported topic that the surveyed social media users consumed.
The report outlines some of the most imperative features of the social media world and its impact on the travel and tourism industry. The report states how all digital channels collect basic demographic information about their users, along with data like age, gender, geography. Many consumers tender more information like relationship status, travel locations, work history and income.
This information can be a gold mine for travel companies and in a way makes the social media platform a very crucial parameter for the growth of such companies.
Buy2Greece.com 