How long will the travel boom last?

After a glorious summer, appetite for holidays could come crashing down as fast as it has risen

Jun 16, 2023

High prices have not deterred sunseekers so far. “People are prioritising travel over other discretionary spending,” says David Goodger of Oxford Economics. Still flush with cash saved during lockdowns, many are splashing out on holidays, even as they trim spending on clothes or dining out. A few factors will determine how long the good times roll on for.

Key takeaways

  • As the Fed and other central banks in rich countries keep fighting stubborn inflation, holiday makers may eventually throw in the beach towel;
  • Chinese tourists, the third-biggest group after Americans and Germans in 2019, according to Oxford Economics, may not pick up the slack, as their enthusiasm for far-flung spots remains tepid;
  • A lull in holidaymaking would be bad news for a heavily indebted industry already facing escalating expenses and recovering from past losses.

Get the full story at The Economist (subscribers only)

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