Travel Desire Recover After The Pandemic

Ever since the outbreak of COVID-19 in 2020, people have been confined to their homes due to social isolation and travel restrictions. The tourism industry has suffered a setback, and recovery remains slow, with the winter season having begun this year. The travel industry has been particularly hard hit, resulting in extensive layoffs across the board, ranging from catering staff and hospitality personnel to airline pilots and cabin crews. Cities and countries that rely heavily on tourism have also been severely affected.

According to survey data from the United Nations World Tourism Organization, the growth rate of tourist arrivals has seen a negative trend since 2020, with figures varying between -90% in April 2020 to -46% in June of the same year. Tourist sentiment has similarly taken a nosedive since the beginning of 2020, going from 33 in January to 19 in April. However, from April 2020 onwards, travel sentiment has exhibited an upward trend, albeit with fluctuations, with the value recovering to 40 by June 2020. These figures illustrate a growing eagerness among people to travel. Demand for travel has picked up pace in response to increased vaccination rates, and people have gained greater confidence in terms of their safety, leading to a rise in travel sentiment.

Data pertaining to the hotel industry indicates a marked improvement in hotel searches and occupancy rates. The growth rate of hotel searches saw a drastic decline from 13.88% in January 2020 to -80.89% in April of the same year but has since staged a recovery, falling to -27.54% in June 2022. Occupancy rates witnessed a similar decline from 57% in January 2020 to 22% in April 2020, but have since bounced back, reaching 66% in June 2022. Occupancy rates have essentially recovered to the pre-pandemic levels and have fluctuated with the seasons, projecting an encouraging trend.

Short-term rentals, such as car rentals or conference room and house rentals, have also witnessed a significant resurgence in demand. The growth rate of short-term rentals had fallen steeply from 32% in February 2020 to -29% in April of the same year. However, demand has since rebounded, surging up to 15% by June 2022. The recovery of short-term rental consumption is beneficial for the tourism industry, as it generates profit and further promotes the recuperation of the tourism industry's supply chain.

Travel searches are a reflection of the number of people planning to travel. The growth rate for travel search volumes stood at 11.27% in February 2020 but plummeted to -71.44% in April of the same year. However, the data showed an uptick, with the highest figure recorded at 180.10% in April 2021, before gradually returning to stability, reaching 41.05% in June 2022. These statistics demonstrate a growing inclination among people to travel, returning slowly but surely to pre-pandemic levels.

COVID-19 is no longer the primary concern for travelers in Europe and North America. Instead, travel concerns are shifting towards inflation and personal or family reasons. People who curtailed recreational and social activities during the pandemic stashed away savings, earmarking a portion for travel budgets.

The figures make it clear that global travel demand is reviving. The resurgence of tourism not only depends on boosting demand but also on getting support for national management policies that can contribute to the tourism supply chain's restoration. With the present momentum being positive and many countries still working on virus control, the gradual relaxation of travel restrictions is likely to inject vitality back into the tourism industry and promote economic recovery.

References

1. United Nations World Tourism Organization, “The UNWTO Tourism Recovery Tracker”.