(Bloomberg) — Peter Kern, CEO of Expedia Group, believes 2023 will be the year that forecast a recovery in travel and you will really start to enjoy it.
But before that, he envisions something bolder: “The summer of 2022 will be the busiest travel season in history,” he told Bloomberg via Zoom.
“We have been talking regarding repressed demand for a long time, but until now there have been too many restrictions,” he explained. With Europe expected to ease restrictions, fewer mask wearing mandates even in some states of the United States, and materializes the reopening of borders In parts of the world like Australia that had not yet welcomed international tourism back, many pandemic-era travel barriers will start to ease.
It’s not just the ease of travel that will herald his return; it is the combination of high volumes and high prices.
“Airlines expect to be back to historic levels in August,” Kern added. “And yes, prices will be high. But at this point, I think people are willing to pay whatever it takes to travel and go anywhere they want.” After all, she explains, part of pent-up demand is accumulated savings: People tired of spending on household goods are already willing to pay for experiences, either in cash or with loyalty points that have been quiet since 2020.
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As for where people might travel, Kern bets on cities. “People are tired of go to national parks. They want to go to New York and go to a Broadway show,” she said. He also noted that Europe’s cities with many cultural attractions and dining options (such as Florence, Paris, London) will also be in huge demand.
Kern is not alone in anticipating a great summer season. On February 9, the World Travel and Tourism Council updated its business model with projections that US travel and tourism would exceed pre-pandemic levels by 6.2%, accounting for nearly $2 trillion in US gross domestic product. In Europe, Council data shows that bookings for the summer of 2022 have already exceeded 2021 levels by at least 80%.
Kern cautions that this does not mean the travel industry will recover evenly. The cruise business, for example, will take longer to recover than hotels or airlines, for as long as it has endured heavy restrictions from the Centers for Disease Control. In regional terms, Asia and Latin America are unlikely to see strong rebounds in 2022, due to both tighter lockdowns and a higher number of ongoing cases, he said. business trips are still significantly behind.
original note:
Expedia CEO Predicts ‘Busiest Travel Season Ever’ This Summer
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