Sales growth is not an indicator: Why travel industry is on the verge of decline

Increased costs due to the global cost of living crisis may force people to abandon their annual travel plans. This is evidenced by sharp sales and a decrease in the number of travellers recorded by tour operators in 2023.

Last year, 15% fewer people travelled than before the pandemic, resulting in prices rising by 20-30%, which is significantly higher than inflation. This was reported in the Börsen-Zeitung.

It is noted that such changes are associated with a shortage of flight capacity, as well as an increase in the cost of maintaining hotels and staff salaries. In addition, one of the main reasons for the decline in tourism is the inability of people to spend too much money on vacation.

Thus, people are forced to reconsider their usual routes and choose more affordable options, particularly in the eastern Mediterranean. In addition, amid the need to spend more money on travel, some airlines are recording an increase in private registrations in business class and first class.

It is emphasized that the price increase has not yet reached its maximum and may vary throughout the year. In addition, pricing is influenced not only by the tourism industry but also by other factors, including the planned increase in aviation tax, the problem of providing the airline with the required number of aircraft, and the introduction of new environmental initiatives.

Earlier, TravelWise reported that Ryanair warned of an increase in ticket prices due to a delay in the delivery of Boeing aircraft.