STR Insight Blog: Travel disruption and financial barriers stall consumer sentiment, but wanderlust remains

The blog begins by noting that at the end of July 80% of hotels across global markets were now reporting that revenue per available room was at 80% or more of its 2019 equivalent value when adjusted for inflation. 

The net propensity to travel in the current environment (the difference between those stating they were more and those stating they were less likely to travel) remains negative for both domestic (-4%) and especially international trips (-31%). 

When asked to hypothesise their ‘post pandemic travel propensity’ the situation was far more positive with scores of +29% for domestic and +27% for international travel. 

It is concerning that the study found that around six-in-ten consumers are now worried about cancellations and disruption impacting any trips that they may have planned.  Roughly half of those polled said they were concerned about the rising cost of accommodation when travelling and that as a result they were spending more time searching for deals. 

When asked about the factors that may negatively impact travel plans over the next 12 months worries about the war in Ukraine have diminished slightly since the previous survey in May, whereas a growing number, now 61% identified ‘cost of travel’ as being a negative factor while 48% cited ‘increasing household costs’. 

The piece concludes by noting that despite positive signs in relation to consumer demand over the medium to long-term there is a challenging backdrop for tourism due to a worsening economic situation, cancellations and disruption to travel and lingering concerns regarding Covid-19.      


Link to STR insight blog on disruption and barriers