![]() Higher prices for essentials, such as rent and fuel, cut into most people's spending on leisure travel, the report said.ĭespite the rebound in travel bookings, there are considerable headwinds still facing the industry. However, those on lower incomes benefited less from asset price increases, especially those living from one payday to the next. Higher-income consumers - those more likely to be travelling for leisure - are in a solid financial position, driven by excess savings set aside during the pandemic and a rise in asset prices such as housing. People have also paid off debt and other liabilities at a record pace over the last two years, the MasterCard travel report said. The survey also found that 54 per cent of respondents looking forward to big “make-up” trips after two years of little or no travel. Roughly 21 per cent of consumers expect to spend their money on domestic travel and 12 per cent on international travel over the next three months, according to a MasterCard study which surveyed 2,250 consumers across 15 markets. More employed people also means more potential to travel for business. This means more people who can buy plane tickets and have the budget for other discretionary spending. Tailwinds behind the industry's rebound include a surge in hiring recently after millions of people faced unemployment in 2020, the report said. Now, the industry is facing the challenges of a shortage in staff to meet that demand, higher oil prices and spillover risks from the Russia-Ukraine war. The global aviation industry is recovering from the pandemic that dented demand for air travel, forcing airlines to ground aircraft and lay off workers. “While the recovery could still face delays, we have more reasons to be optimistic than pessimistic.” “As restrictions ease in many parts of the world, consumers are booking domestic and international travel faster than they can rip open a bag of in-flight pretzels,” the report said. ![]() Short- and medium-haul flight bookings have also outpaced 2019 levels, up 25 per cent and 27 per cent respectively, in April, after rising for the first time since the pandemic in February. ![]() Long-haul leisure travel, which recorded the steepest declines during the pandemic, is making a “roaring comeback”, tracking just 7 per cent below pre-pandemic levels in April, a nearly 70-percentage-point gain from the start of the year. Business travel, a critical profit segment for airlines, had lagged behind the recovery in leisure trips. Other indicators look promising for the aviation industry, which has been battered by the Covid-19 pandemic over the last two years.īusiness travel bookings have exceeded 2019 levels for the first time since the pandemic started, a major milestone in the industry's recovery. Of these, Europe will record the biggest increase with about 550 million additional travellers, while the Middle East is expected to have 115 million more this year. Pent-up demand for air travel after two years of lockdowns will continue to buoy the industry's recovery as restrictions ease, despite headwinds from inflation and geopolitical risks, a study indicates.Īn estimated 1.5 billion additional people globally are expected to fly in 2022, compared with last year, according to the MasterCard Economics Institute's third annual travel report. ![]()
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