On the one hand, there’s evidence of strong demand for travel and improving sentiment as Covid-19 concerns subside. On the other hand, geopolitical, economic and other global issues are coming to the fore, which may act as barriers to travel. The overall picture remains unclear as we enter the peak summer season in the Northern Hemisphere.
While global factors will continue to unfold and shape prospects for the travel industry in the coming weeks and months, lessons can be learned from the existing behaviour and views of travellers. Data from STR’s latest consumer survey in May 2022 sheds light on aspects that are likely to influence tourism through 2022 and beyond.
The pandemic led to many consumers shying away from long-haul trips, and complicated and ever-changing travel restrictions deterred others from venturing beyond their own borders. However, new STR’s findings show an increased tendency toward international trips and a decline in domestic trips. Over a quarter (28%) of those who had booked to travel recently chose an international leisure break, compared with just 11% of respondents asked in July 2021. Meanwhile, the preference for domestic trips decreased from 57% in July 2021 to 44% in May 2022.
The next few months could see a collision course for tourism as opposing forces meet. Strong demand for travel, subsiding concerns about Covid- 19 and high, albeit falling, personal saving rates will continue to drive up tourism and hotel occupancy. However, intensified financial concerns linked to inflation and its impact on the global economy, may weaken this momentum. Other factors such as the war in Ukraine, or the operational challenges hampering the industry, may also dent growth.
