As Covid restrictions ease, more US travelers are expected to travel this summer. This also means unrestrained demand in the leisure and travel industry that will push prices even higher.
A surge in demand for services is reported from all airlines, hotels, rental car companies and booking sites in their respective batch of company earnings. But at the same time, many of those companies face a tight labor market and limited volume as they scramble to restart and expand operations after more than two years of depressed demand due to the pandemic.
Tripadvisor advised travelers to expect inflation that will affect all aspects of travel in 2022. Booking now rather than later is a good option to take to avail of lower prices.
For example, Hilton Worldwide Holdings Inc plans to continue to reprice hotel rooms “every minute of the day” to limit the impact inflation has on its business, according to its CEO, Christopher Nassetta. The price of flights this summer are also trending higher, according to travel search engine Skyscanner. Car rental firm Hertz Global Holdings reported it averaged about 481,000 vehicles during the first quarter of 2022 compared to a pre-pandemic level of approximately 700,000 vehicles.
Other areas of the travel industry are also faced with supply constraints and labor shortages as leisure and business travelers return.
Author: Deb Davad