Paul Sandle and Tim Hepher

LONDON/DUBLIN – Bookings are rising at European hotel chains and airlines, fueled by the demand for shorter travels, but travellers continue to be cautious when making long-distance trips.

As governments all over the world ban foreigners entering their borders, international travel became virtually impossible due to this pandemic. Executives have been cautiously optimistic about the loosening of travel restrictions and the growing demand for it.

There are still challenges, such as rising cost and staff shortages that can cause flights to be cancelled. However, many airlines expect to return to profitability.

“There’s a lot more demand than there is supply. Phil Seymour is president of IBA Group, an aircraft valuation and consultancy firm based in the UK.

British Airways owner IAG, LON:), said that the company expects to make profits in the second quarter as well as for the whole of the year. This is despite the fact that we had to reduce capacity during the first quarter in order to prevent disruptions.

Luis Gallego (IAG Chief Executive) stated, “Premium leisure remains the strongest performing segment. And business travel is at the highest level since the beginning of the pandemic.”

IAG (which also has Vueling, Iberia, and Aer Lingus) said that the relaxation of restrictions on travel, especially within the UK, has improved the demand. The company reported that there was no noticeable effect from Russia’s invasion in Ukraine.

IAG predicts that passenger capacity will be approximately 80% in 2019 by the end of the second quarter and rise to 90% by quarter four. According to IAG, flights between Europe & North America will reach full capacity by the end of the third quarter.

Sophie Lundyates, Lead Equity Analyst at, stated that “We’re finally starting to see genuine shoots for progress with profits expected to sprout in the next quarter.” Hargreaves Lansdown, LON:

IAG’s positive outlook was influenced by similar guidance provided by other European airlines.

Lufthansa Germany hopes to make an operating profit in the fourth quarter, as travel demand rises following the removal of COVID-19 restrictions.

Air France-KLM announced on Thursday that it has experienced a rebound in ticket sales as well as strong summer bookings.

This recovery is driven by shorter-haul bookings. Long-distance trips are still being avoided by travelers due to COVID-19 and U.S. visitor concerns.

Demand is increasing for hotel operators as well.

IHG, owner of Holiday Inns, stated Friday that the pent up demand for hotel rooms during U.S. spring break has led to higher occupancy rates and increased prices. This has helped IHG raise its revenue per room close to the pre-pandemic level in the first quarter.

Keith Barr, chief executive at IHG, stated that hotels have increased their pricing power.

U.S. competitor Marriott International (NASDAQ 🙂 stated Wednesday that it expected a key revenue indicator for U.S.- and Canadian markets to reach pre-pandemic levels by the end of this year.

Amadeus, a Spanish company that operates the biggest travel booking site in the world, was another sign of increasing demand. The company processed nearly 92 million reservations in the quarter’s first quarter. This is a fraction of the pre-pandemic level. It was even more than half the number of bookings it processed in the first quarter, despite the widespread spread of COVID-19 Omicron.

Higher inflation, Russia-Ukraine war, and increased travel demand will not derail the recovery, according to David Goodger, the managing director for Europe and the Middle East of consultancy Tourism Economics. This Oxford Economics company is managed by David Goodger.

His prediction was that domestic travel volumes will surpass those of 2019, while international travel would see an increase.

As Europeans live more globally, the growing cost of living will limit some travel.

Seymour, of IBA, said that he was curious about the ‘city-break’ travel options. He made the remarks at the Airfinance Journal conference. These types of discretionary travel are often stimulated through direct links with budget carriers.

It’s what I call the Michael Buble syndrome. It used to be that people would fly to Italy just for the concert. They might now save money and just wait until the tour arrives closer to their home.