While the entire world is watching at the progress in the Ukraine crisis and tries to manage high inflation and rising energy prices, the tourist industry is gearing up for winter. After a great summer and a promising fall season however, the outlook for the coming year don’t appear to be so promising. The rising cost of energy and the imminent recession could force some travelers to cancel their vacation and travel plans.
The October bookings are looking promising, according to the results of a study done in Germany. Top destinations are Greece, Turkey, Spain and Egypt. Crete, Rhodes and Kos and Crete, Rhodes and Kos as well as the Turkish Riviera are currently experiencing high demand and are continuing to experience a strong summer trend as per TUI Germany CEO, Stefan Baumert. A lot of German travelers are hoping to go on an extended vacation in October, particularly families in the next half-term holidays.
Like Germany In Romania in Romania, for the very first time that all students, not just those who are in the grades 1 to 4 will be on the opportunity to take a vacation during the period between to 30 October. This could result in a rise in bookings for tourists during this time frame due to the early beginning of school, some holidays were cut short.
The data shows that during the first quarter of the year 50.3 percent of the tourists who were not residents of Romania were there for personal reasons, while 49.7 percent came due to reasons of business. Of these, 43.8% organized their stay with a tourism company, 33.5% organized themselves their stay, 16.1% opted for alternative methods of organizing, while 6percent used an agency as well as their own method. The most popular mode of transport that tourists used was airplanes, with three out of four travelers traveled by plane to Romania.
This is not a coincidence. According to the most up-to-date IATA information, for July of this year, passenger traffic for the airline increased by 58.8 percent compared to July 2021. Globally, passenger traffic is at 74.6 percent of the pre-crisis levels. International traffic increased by 150.6 percent over July 2021. July 2022 was the year of international RPKs (revenue passenger miles) amounted to 67.9 percent of the July 2019 level. Every market reported strong growth.
Based on Guestcentric Market information which was published at the beginning of the month September 20, 2022. fall season is promising for hotels when it comes to the revenue generated from on-the-books. September looks very positive and October is growing faster, while November 2022 and the month of December are lining up with levels in 2019.
But there are a number of headwinds, including the rising cost of energy as well as inflation, and many other issues that are affecting consumers’ budgets and their decisions to travel. For trivago ( TRVG) CEO Alex Hefer the future does not look very promising. He believes the state of the overall travel industry to worsen in the coming spring, because consumers will have less money for travel. Furthermore that overnight stays will be more expensive in 2023 – which it was this year – than prior to the financial crisis. This means we’ll see less and fewer trips. For many businesses it’s already noticed beginning in 2023’s first quarter. However, the remainder of the year is also expected to be less that 2022. noted.
