The travel industry is booming as the world reopens after two years of pandemic-related restrictions. However, not all destinations are benefiting equally. While international travel is on the rise, domestic travel is suffering.
(TRAVPR.COM) INDIA - August 8th, 2023 - The travel industry is booming as the world reopens after two years of pandemic-related restrictions. However, not all destinations are benefiting equally. While international travel is on the rise, domestic travel is suffering.
There are a number of factors contributing to this trend. One is the rising cost of airfare. International airfares have increased by about 10% over the past year, while domestic airfares have declined by about 11%. This makes international travel more affordable for many people, and it is also seen as a more exciting and exotic experience.
Another factor is the pent-up demand for international travel. After two years of being cooped up at home, many people are eager to explore new cultures and see new places. This demand is being met by a number of airlines that are offering new routes and increasing frequencies on existing routes.
Domestic travel, on the other hand, is facing some challenges. One is the lack of new destinations. Many of the most popular domestic destinations have been heavily visited in recent years, and there are not many new places to explore. Additionally, the domestic travel market is more competitive, with a number of airlines vying for market share. This can lead to lower prices, but it can also make it difficult for airlines to make a profit.
As a result of these factors, domestic travel is suffering. In the first half of 2023, hotel occupancy rates in the United States were down about 5% compared to the same period in 2019. Additionally, visitation to national parks and other popular domestic destinations has been down.
It is unclear how long this trend will continue. However, it is likely that international travel will remain more popular than domestic travel for the foreseeable future.
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