After a year where travel virtually came to a standstill overnight, all eyes are on the airline and hotel industry. An increase in vaccinations and consumer confidence have unleashed some pent-up demand, but the lack of business travel is beginning to slow the comeback we’ve seen since January 2021. Adobe is issuing the latest travel data and spending insights:
Domestic flight bookings drove $5.1 billion in online spending in May 2021, which represents a 4 percent decrease from the month prior (April 2021). This is the first month this year where flight bookings growth began to plateau, after a steady rise beginning in January of the new year. Spend in May 2021 is down significantly (20 percent) compared to May 2019, which drove $6.4 billion in spend. As consumers use past flight credits, it’s putting a dent in the bottom line.
So far this year (Jan - May 2021), a total of $21.2 billion has been spent for domestic flights, down 35 percent compared to the same period in 2019, which netted $32.9 billion.
The lack of business travel (as companies take a careful approach to re-opening) and lingering consumer hesitation are prolonging the road to recovery. In a survey of over 1,000 US consumers, Adobe found that only 11 percent plan to travel for work in the next 6 months. At the same time, 29 percent still don’t feel safe traveling at all.