The story of summer travel is certainly not what it once was.
Many travel debates, not the sun, beaches, surfing, are now inflation, rising fuel costs, Flight cancellationA situation that could upset the long-awaited summer 2022 travel comeback.
Travel conversations on Twitter fell 75% from April to May, and gas prices and travel-related discussions (half negative) fell 680% on the website from winter to spring, according to social media analysis firm Sprout Social. Increased. ..
Despite potential future issues, summer travel outlook remains strong and many travelers are worried about their plans for the future, but are worried, according to industry insiders. I am saying.
Are travelers canceling their plans?
No, James Thornton, CEO of Intrepid Travel, a Melbourne-based travel agency focused on adventure vacations in small groups around the world, said.
He said the company will not have a high cancellation rate this summer.
“In the last few months, economists have warned of shortages, sanctions, and global concerns about higher costs,” Thornton said. “Despite rising costs, travel bookings have more than doubled.”
David Mann, Chief Economist at the Mastercard Economics Institute, said high prices couldn’t stop travelers in some of the recently reopened worlds, especially in the Asia-Pacific region.
“Literally, think of it as a pressure cooker that lifts the lid and heats the steam.” He told CNBC’s “Squawk Box Asia” in May.. Inflation is “important, but only after we have released some of that disgusting demand.”
New research shows that Singaporeans, for example, are willing to sacrifice their summer travel plans in the face of rising costs. According to the Tripadvisor Travel Index released in May, 77% said they were “very” or “very” concerned about rising costs, but this summer nearly 40% more people than last year. Is planning a trip.
Nearly two in three Singaporeans say they want to spend less on eating out and clothing to fund their trips.
Conversely, travel resilience may be reduced in places where demand stagnation has subsided, such as Europe and North America.
Almost a quarter (23%) of Americans have plans, according to a March survey published in the Country Financial Security Index Report. Cancel or postpone travel plans in response to inflation..
Still, Americans are expected to travel a lot this summer. More than half (55%) According to a survey by the travel website The Vacationer, they are traveling on vacation on July 4, an increase of 8% over last year’s survey, the company said.
Change, not cancel
“More people are pivoting plans to accommodate price increases and additional costs, rather than canceling. [travel] As a whole. ” Eric Bamberger, Senior Vice President of Hospitality at Marketing Technology Company Zeta Global, said.
Demand for “luxury” travel, such as spas, has increased, but interest in “educational” travel to museums and national parks has declined by more than 50%, according to representatives of the Zeta Global company.
According to Zeta Global, car rentals are declining, with the fastest car rental prices in the United States in places with the highest gas prices, such as California, Oregon and Washington.
But “the hotel is on fire,” Bamberger said. “Some hotels in Las Vegas have a 95% occupancy rate. This Memorial Day was the best-earning record date for many of the top US hotel chains.”
“Still going on a trip”
According to Zeta Global, rising costs are impacting travel costs this summer, with 74% of American consumers actively looking for ways to save on travel. According to the company, nearly one in four say they are looking for cheaper transportation, hotels and vacation destinations.
However Expedia CEO Peter Khan told CNBC Other travelers are ready to spend more on their trip.
“We all know that there were a lot of tedious savings and underspending between Covid in service and travel,” he said. “So far, it seems clear that people are interested in spending, and if anything, more.”
When asked about He reports that people are choosing cheaper vacations: “We haven’t done that so far … especially in the middle and upper limits of the market.”
Kahn said they agreed that if inflation began to affect travelers, they would likely change their plans, but not eliminate them.
“If anything, travelers probably miss what their ambitions are-where they go, what they were staying at-but they’re still going to travel,” he said. Said.
Summer of “Gang Busters”
Anthony Capuano, CEO of Marriott, said the company, which operates in about 140 countries, sees strong demand not only from leisure travelers but also from group and business travelers. Said.
“I think summer will be a big fuss,” he told CNBC’s “Squawk on the Street” in May. “I feel very good this summer.”
According to Zeta Global, interest in business trips in the United States increased by 365% in May after negative demand for the second straight month. It tracks website usage, location and transaction data from credit card and loyalty program purchases.
According to Zeta Global, business trips are increasing rapidly among younger travelers than older senior-level travelers.
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According to the company, Americans’ interest in traveling abroad also increased in May, and interest in traveling to Asia, Europe and South America increased by more than 200% from the previous month.
It was before Biden administration removed pre-departure Covid test requirements Movements expected to kick start in and out of the United States
“We are pleased to announce that the head of Global PR Melanie Fish, Expedia Group, said: “We expect demand to grow only from here.“”
