4 charts show what the travel industry looks like 2 years into Covid
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Even though the popularity of the Omicron variant is increasing, signs are beginning to emerge that the industry is on the verge of recovery.
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After a year of heavy losses, the travel industry is finally showing some signs of bouncing back — even as the emergence of the Covid-19 omicron variantThis has caused some countries to tighten up their borders.
Increasing vaccination rates pent-up demand and accumulated savingsAs national lockdowns were eased, and countries relaxed their border restrictions, this helped to spur global tourism in 2021.
These are the four charts showing what the industry looked like after the Covid pandemic.
Recoveries at the regional level
According to Skift, a study of travel news and research found that recovery from travel has been uneven in different regions.
Use an index over 50 different indicators, the analysis measured recovery across different regions — compared to where the industry was in 2019 before the pandemic. These indicators include searches for travel, hotel occupancy rates and revenues per night, cancellations, and revenue per day.
Wouter Geerts is senior analyst for Skift. “What we found is that there’s a strong correlation between new Covid cases” said Wouter Geerts.
He said that when there are more cases, the borders close and local lockdowns take effect. Travel then sees an immediate decrease.
The analyst said that North American nations like the U.S., Mexico and Canada have been “more open”, which has helped their tourist industries. Geerts stated that “zero Covid,” or the strategy of imposing strict restrictions on travel in Asia, has been used to suppress travel.
In the last weeks, many countries included the U.S., Canada, the U.K. and Singapore moved to restrict travel from southern Africa after the World Health Organization labeled omicron — a Covid-19 strain that was first discovered in South Africa — a variant of concern.
Airlines’ losses
IATA predicts that global revenue passenger km (RPK) will increase in this year’s world, though only by around 40% from pre-Covid levels. RPK (Revenue Passenger Kilometers) is an industry indicator that measures the distance traveled by paid passengers.
Lower Fitch Ratings its global RPK forecasts for 2021 and 2022The agency cited a slow than anticipated rebound in international travel and restricted business travel. The agency stated that the new omicron will make it difficult for airlines to operate in volatile conditions.
Fitch reported in November that “while it’s too early to determine the impact of the Omicron,” additional waves of infections, and the policy responses to them could result in travel restrictions or stalled traffic declines and/or travel restrictions.”
According to IATA, North America may be the region that airlines will turn a profit next year.
Hotel bookings
According to data, the Middle East has seen the greatest recovery with hotel bookings in the period January-20th 2021 being only 13% lower than the same timeframe in 2019.
According to Accenture’s managing director for growth markets travel, Mike Tansey said that high vaccination rates coincided with peak European travel season. This was a major contributor to the Middle East recovery. Europe is an important source of Middle East tourists.
CNBC’s He stated that “Middle Eastern Countries are near tops of the league for vaccination rates. It means the region benefits among the fastest from this travel upswing.”
Outlook for travel in 2022
Although the tourism pandemic may not be over yet, many in the industry remain optimistic about the possibility of a recovery.
Choo Pin An, Expedia’s managing director Asia, stated that governments have made “very encouraging steps” in order to revitalize travel. He mentioned Thailand and Malaysia as examples where more travelers have been allowed.
Choo stated that the outlook for 2022 is much brighter, according to CNBC. “Capital Connection” in October.
Researchers at travel site Booking.comWe surveyed over 24,000 adult respondents in August and asked them about their travel plans and preferences for 2022.
One main difference in the survey outcome compared to last year’s survey was related to remote work, said Nuno Guerreiro, regional director for South Asia Pacific at Booking.com.
Most travelers — about 59% — would opt for shorter vacations if it means they can completely switch off from work instead of working remotely while on vacation, he said.
Guerreiro stated that travel is under constant pressure because of ongoing Covid infestations in several countries. He said that travel is still a fundamental part of people’s daily lives.
— CNBC’s Yen Nee Lee contributed to this report.
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