The pool at the Turtle Bay Resort on Oahu’s North Shore.
Amanda Macias | CNBC
Consumer prices for hotels, motels and other lodging in November fell nearly 5% from October, according to the latest government inflation report, signaling that the surge in travel demand since the summer has lost momentum. is showing.
Airfares also fell by 0.6% month-on-month. Still, the price index for hotels, motels and accommodations is 3% higher than he was a year ago, and air fares are 36% higher.
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The cooldown comes in a year when the travel industry enjoyed a major tailwind after years of upheaval due to Covid.Delayed travel demand also started break into retail momentum When pandemic shoppers turned into post-pandemic travelers.
But with the prospect of a recession looming, November’s drop in travel prices could portend a further drop in demand.
In the travel industry, demand has tapered off since the summer surge. jet blue said in a regulatory filing on Tuesday that the strong last-minute demand expected in December in its previous financial outlook was “less than expected.” The company’s latest outlook, which also includes the impact of Hurricane Nicole in November, sets fourth-quarter unit revenue growth “on the lower end of previous guidance,” and expects 2019 to drop from 15% to 20%. 19% higher.
But United Airlines CEO Scott Kirby said travel demand and revenue remained strong. Business travel has “flatten”.
Even as travel demand cools, industry earnings remain stable due to rising prices.thanksgiving flight booking decreased by 7% However, according to Adobe data, higher fares increased revenue by 3%.
