Travel demand recovery may hit inflation wall soon
The pent-up travel demand may run out of steam in the second half of 2023 as rising risks of a recession threaten consumer spending
Hilton's comments marked a somber start to first-quarter earnings for hotel operators, dousing optimism around its estimate-beating results and dragging the company's shares down nearly 5%.
Key takeaways
- A slowdown in the broader economic environment will have an impact on the travel industry, which unlike several others in the discretionary space, had so far largely evaded the effects of higher interest rates on consumer spending;
- The company still remains confident about the momentum in demand continuing in the near-term, including in international travel, led by U.S. travelers and China's reopening.
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