Revenge travel isn’t so exciting anymore

It’s been a sizzling summer of travel, but this will likely be the peak of the post-pandemic boom

Although there is a reduction in demand, it is worth noting that this decrease is occurring from an already elevated level, as consumers in both the United States and Europe are compensating for trips that they were unable to take during the Covid pandemic. However, there are increasing concerns that this decline in demand is not solely due to geographical factors; consumers might be curtailing their spending due to elevated prices.

Key takeaways

• Within the United States, airlines such as Alaska Air, JetBlue, Frontier, and Spirit, which predominantly serve North American markets, have cautioned that weakened demand within their domestic regions will impact ticket prices and financial outcomes during the upcoming autumn season.
• Currently, Europe is not mirroring the trend seen in the United States, where there is a slowdown in short-haul travel. Notably, budget airline EasyJet Plc recently indicated that it is still experiencing robust demand.
• Nevertheless, historical patterns suggest that the United States tends to experience changes in trends six to nine months before Europe, implying that a stabilization phase may still lie ahead, especially considering the influence of higher mortgage costs.
• These differing outlooks underscore the fact that various consumer groups, market segments, and geographical areas are facing distinct pressures. Older and more affluent consumers are likely to continue allocating a significant portion of their spending towards vacations this year.

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