The COVID-19 pandemic, no doubt, upended our lives, leaving no sector unaffected. One of the sectors hit hard by the pandemic was the travel industry.
However, the travel sector seems to be enjoying the ‘post-Covid boom’, with the number of travel reservations witnessing a spike. Surveys conducted last year, even when borders were yet to be completely opened, indicated that people were inclined toward undertaking travel adventures.
One such survey conducted by a large travel internet search company revealed that some people were ready to quit their jobs and even give up their partners to travel. The survey, which polled people in the US and the UK in early January last year, came as a big sentiment booster for the travel industry, which was reeling from grounded flights and a limited number of hotel guests.
Before we explore whether the travel industry has completely recuperated from the pandemic shock, let us explore whether the survey as mentioned earlier findings came true.
The boom is here
The summer of 2022 has brought cheer to the sector, with airlines across Europe and the US witnessing a heavy surge in enquiries and bookings. The hotel industry is arguably doing better than airlines, with big chains like Marriott International reporting higher-than-expected profit growth. Analysts say hotels have finally left the pandemic shock behind, and these are times of increased profitability, thanks to the people opting for longer stays even when room rates are high.
It was recently reported that Hilton’s profit has surged above the pre-pandemic level. Another global hospitality entity, MGM Resorts, reported higher profits than in 2019. Be it Host Hotels and Resorts, the operator of Grand Hyatt and Four Seasons, or any other big chain, and the lodging industry is faring even better than airlines.
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Concerns exist
By one measure, one can say that COVID-19 now has little to no role to play in the travel industry. Even masks are no longer mandatory in most places; not many people are concerned about social distancing. Profits indicate that things are great. A deeper look at the sector, however, reveals that the aftereffects of the pandemic can linger for a long period.
Source: Pixabay.com
The summer travel season of this year has been marred by long queues at airports, with pictures of crowds waiting at the check-in counters of airports across Europe doing rounds in news media. Here are the new worries troubling the travel industry, primarily airlines.
- Labour shortage — Believe it or not, even during times of recession and high inflation, the industry is struggling with staff shortages, so much so that it was reported that exhaustive interviews had given way to quick hiring, which is now like a few minutes exercise.
- Cost surge — For airlines, in particular, inputs costs have gone up, thanks to rising fuel prices. To retain talent, especially pilots, many airlines have announced hefty hikes in paychecks.
- Cancellations — At airports, where planes gathered dust during the pandemic, the scene now is that airlines across the West are resorting to fighting cancellations in the wake of a severe staffing crunch. It has become difficult to handle queues and disputes even as staffers are threatening to go on strikes.
The so-called post-Covid boom is reflected in the increased number of bookings and higher revenues. However, the global travel industry has yet to completely recover from the pains brought by the pandemic and its aftereffects.
Also read: Travel insurance: Things you should know before buying one
Written by: Kalkine Media
