The sharp rise in inflation has not yet caused any slowdown in travel demand in spring and summer. Booking Holdings CEO Glenn Fogel told CNBC on Thursday.

“Not yet. Fogel said, “Not yet.” His company provides online travel services including booking flights. Fogel cited disruptions caused by the Covid pandemic to routine travel.

If you’ve had two years without people traveling as they wish and have lots of savings over that period of time, the prices can get really expensive and people will start to say “I don’t care.” It’s all about the travel. “I want to travel,” said the CEO in an interview. “Closing Bell.”

The Federal Reserve, along with other central banks worldwide have increased interest rates. They are likely to continue increasing them in the future. To reduce inflation, that’s the most important lever in the monetary policies toolbox.

Fogel stated that he expects the price situation for travel-related services to worsen in the short term. This could be due to fuel prices rising in the wake of the Russia-Ukraine War disruptions.

Prices are rising right now if you want to go on a summer vacation. Fogel stated that he doesn’t believe the situation will change.

These premium travelers can be generally seen as less sensitive to higher pricesBecause they can afford the best amenities. These travelers are the most important target group for airlines, especially on international flights as more cross-border travel is increasing. It took international travel longer to rebound from pandemic-related declines that domestic trips.

Fogel indicated that Booking Holdings believes there will still be international strong travel, although he acknowledged regional differences.

“Asia [is]We’ve been seeing this for quite some time. However, Eastern Europe doesn’t seem to be returning as quickly as Western Europe. Fogel stated that there is also the tragedy caused by the conflict in Ukraine which has had an adverse effect on Eastern Europe.