Promising trends signal optimism for the hotel sector

The global travel recovery took great strides in 2023, with some destinations already reporting a full recovery back to pre-pandemic levels. Trends continue to suggest further growth in tourism activity going into this year, signalling optimism for the hospitality sector going forward. But risks stemming from inflation, geopolitical tensions and climate change will persist.

What you will learn:

• Hospitality performance, and wider travel activity, exceeded expectations throughout 2023 in most destinations, regaining prior 2019 peak levels of demand. It outperformed economic activity despite rising costs as consumers continue to prioritise travel over other leisure spending. The outlook for 2024 is positive as economic growth is set to improve, and notably in Europe, as inflation has fallen within a more normal range, with interest rates cuts expected later in the year.
• The luxury boom will also continue with ongoing trading up as some travellers are spending more per trip. Disposable income and household wealth has also been less affected for higher income households in the recent economic slowdown.
• Returning long-haul demand will provide a further boost to demand worldwide, and within Europe. Recovery in Asia Pacific travel, and notably from China, has lagged the rest of the world as travel restrictions were only fully removed in 2023. However, for Europe, some long-haul markets are more exposed to geopolitical risks.