Travel sector risks reality check as summer boom starts to fade

Yet most senior executives, particularly in Europe, are confident that consumer spending on travel appears immune to the cost of living crisis

Oct 2, 2023

The travel industry is facing an uncertain winter and questions over whether the insatiable demand for holidays can withstand persistently high inflation and economic stagnation, or is a post-pandemic bubble waiting to burst.

Key takeaways

  • Ryanair, remains “cautious” despite strong winter bookings that are 3-4 per cent ahead of where they were last year;
  • Accor agrees that the industry is braced for a “diminishing in pricing power”. The company now expects more normal growth in revenues per available room of 2.5-5% a year “because of pressure on the middle class population”;
  • For most though, serious cracks are yet to appear. As of mid-September, booked occupancy for hotels worldwide in the fourth quarter is 11% ahead of the same time last year, according to Amadeus.

Get the full story at The Financial Times

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