Travel Demand Set to Stay Strong in 2023 Despite Cost Pressures
Global consumer desire for travel remains highly durable even against the strain of rising inflation and economic headwinds. That’s according to Skyscanner CEO John Mangelaars, who predicts steadily building travel momentum carrying into 2023.
In his year-end review, Mangelaars noted robust tourism activity across Skyscanner’s platforms so far in 2022. Despite lofty airfares and increasing cost-of-living challenges, eager travelers continue pursuing postponed international trips and new adventures.Industry data affirms the surprisingly resilient demand. Cirium revealed air travel has rebounded to 93% of pre-pandemic seat capacity while ForwardKeys found 2022 flight bookings recovering over 75% through late summer. Searches on Skyscanner this fall exceeded 2019 levels.
The CEO credits much of this travel fever to “revenge tourism” pent-up demand after two years of stringent mobility limits for much of the world. Having sacrificed and saved throughout lockdowns, many travelers set their sights on dream destinations as an overdue reward to themselves.This inclination towards experiential luxuries like getaways rather than material goods partly explains tourism’s upswing counter to expectations that higher inflation would prompt consumers to tighten budgets. Mangelaars believes habits formed during isolation have also changed how people value interactions and adventures.
However, the Skyscanner executive does acknowledge industry hurdles like staffing struggles increasing frustrations for travelers navigating snarled airports or cancelled flights. Still, he notes airlines and the broader tourism ecosystem have largely adapted to surging volumes. Customer surveys reveal extremely high satisfaction with travel experiences themselves. While recession concerns loom in 2023 for major economies grappling with rising borrowing costs, Mangelaars believes tourism’s momentum can overcome macroeconomic uncertainty barring worst-case scenarios. Consumers worldwide built massive savings stockpiles throughout COVID that many now yearn to splurge.
Skyscanner’s data puts emerging Asian destinations like Japan, South Korea and the Philippines topping 2023 wish lists as the Asia-Pacific region’s reopening accelerates travel’s mass resurgence. Yet enduring favorites including Spain, Italy, France and the U.S. all see demand holding steady.The holiday peak season already witnessed Asian metropolises and Mediterranean getaways swarming with tourists again. American travelers are also shrugging off inflation and flocking abroad. 40% told Skyscanner they won’t let higher costs impede plans through next spring.
While individuals trim discretionary purchases amidst inflation’s toll, insatiable travel demand looks resilient heading into 2023. After two years banned from global connectivity, people seem unwilling to postpone trips again barring absolute necessity. That’s promising news for battered tourism businesses on the rebound and economies hoping travelers’ undimmed appetite to satiate pent-up wanderlust continues powering recovery, regardless of economic uncertainty.
