A new report published by Bloomberg Intelligence (BI) has revealed that the European travel industry may not completely recover from the pandemic until 2023. Domestic businesses might see some growth in the second half of this year. The report also found that pent-up holiday demand and the uneven pace of vaccinations across Europe might help UK businesses.
Consumer behaviour has also drastically changed
Continued travel restrictions and consumer wariness may mean that international-focused businesses won’t see a return of holiday spending until 2022/23. Additionally, the hotel sector might see a wave of consolidation after independent operators are bought out.
BI industry analyst, Conroy Gaynor said: “Vaccines are a positive catalyst for European-listed travel companies but uneven recoveries across leisure, business, domestic and international customers may drive a wedge between their performances. Covid-19 mutations or slower inoculations in some areas could mean airlines, tour operators, and concessions that rely on long haul wait longer.”
The BI report also says that recovery in the European travel market will be a test for whether the pandemic has permanently changed consumer behaviour. The online market may be higher after the pandemic as consumers will have changed habits.
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