Industry counts the cost of volcanic chaos

Editor's note: This item is republished with permission from Global Edge Marketing Ltd. The original post can be viewed here.

Overseas property agents prepared for the worst as the travel chaos caused by a volcanic ash cloud over Europe ran its course.

Although the eruption hit agencies with exposure to the overseas rental market hardest, a number of companies have reported significant potential losses in sales business.

Robert Armstrong, sales and marketing director of Spanish Luxury Homes, said he may have lost over ($134,378 in U.S. dollars) in commission:

"We had four inspection trips booked over the weekend, one of which was for a ($1.07 million) property near Denia on the Costa Blanca. We were confident of seeing more than ($134,378) in commission. Having said that, two of the people have re-booked, but the properties may not be available (when they return). Flight prices have (tripled), so it's concerning."

Neil Hollingsworth, owner of Rivermead Global Property -- which works for developers in Turkey, Egypt and St. Lucia -- hasn't lost any business yet, but is nervous with five inspection trips booked over the next 11 days:

"We have two on the 23rd and three on the 30th. We heavily subsidize our inspection trips so we could be significantly out of pocket if we cannot get money back from the airlines. Commission-wise, we are looking at roughly ($38,450) in lost revenue if the sales fail to materialize."

When you want bad weather ...

The enormous cloud of dust stretched from the Arctic Circle in the north to the French Mediterranean coast in the south, and from Spain into Russia. Lorraine Phillips, director of Cyprus agency Angus Homes, hoped for a change in the climatic conditions:

"I heard on the news ... that it's heading slowly West but when you need wind and rain, you don't get it. It's the last thing we need at the start of the holiday season. On top of the recession, this is a nightmare!" ...CONTINUED

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