After long periods at home due to the pandemic, people are eager to pack their bags and hit the road. But with superinflation hurting the pockets of Americans, many are looking for ways to travel on a budget, opting for shorter trips or avoiding luxury hotels.
According to data from the Trivago platform, two- and three-star hotels are gaining popularity, while four- and five-star options are becoming less desirable.
Travelers are also seeking less expensive destinations. For example, Morocco and Portugal have been increasingly sought-after destinations lately.
Contraction for some, expansion for others
Due to robust demand and high prices, the travel industry expects 2023 to be a strong year. The International Air Transport Association projected that global airlines will return to profitability in 2023 for the first time in four years.
For now, bookings for air travel are still below pre-pandemic levels. From the beginning of the year until February 2, global flight bookings remained 22% below the same period in 2019, according to data from ForwardKeys, a travel analytics company.
But this may change soon, thanks to the removal of strict quarantine and Covid-19 testing requirements in China, reopening the world’s largest group of global travelers. The World Tourism Organization believes that international tourist arrivals could reach 80% to 95% of pre-pandemic levels this year.
An increase in the number of people traveling from China to major cities in Asia, Europe, and North America is expected during the summer. This could further drive up hotel and flight prices. Airfares have already been rising sharply year over year due to ongoing labor shortages and delays in the delivery of commercial jets.
Even low-cost providers may charge more in this climate. So the way is to plan and save well before hitting the road.
Source: CNN