Travel Industry News at TravelNewsAsia.com since 1997
Monday, 5 June 2023

Can Flight and Accommodation Supply Keep up with Demand?

(05/06/23)  New insights from the Mastercard Economics Institute reveal that consumers are taking advantage of a more traditional travel ecosystem in 2023, prioritizing leisure travel and pioneering new corridors around the world.

Published last week, the Travel Industry Trends 2023 report delivers key insights about the global state of travel, punctuated by shifting economic landscapes, persistent consumer demands and the reopening of mainland China.

Key findings include:

• Leisure and business travel are growing at the same pace. Driven by the long-awaited lifting of travel restrictions in Asia, global leisure travel remains robust, with flight bookings up roughly 31% in March 2023 compared to the same month in 2019. In the second half of 2022 into early 2023, corporate flight bookings caught up to leisure flight bookings driven by those regions with a strong return to office culture. Global leisure and business travel are now growing at the same rate. The report shows that demand for in person meetings, with the most significant growth in commercial travel and entertainment expenses being led by Asia Pacific and Europe up 64% and 42%, respectively, between January-March 2023.

Top 10 international travel destinations in March 2023 according to Travel Industry Trends 2023 by Mastercard Economics Institute. Click to enlarge.
Top 10 international travel destinations in March 2023

• Mainland China’s reopening benefits global and particularly Asia Pacific tourism. China’s reopening following tight COVID regulations comes at a time when it will likely have a positive impact on the experience economy as pent-up demand for travel is expected to drive strong tailwinds. By March 2023, spending on experiences was notably 93% of where it was in 2019 despite minimal travel last year. Economies in the Asia Pacific region could be obvious beneficiaries of China's opening, given their strong ties to international trade, tourism, and geographical proximity. Based on Mastercard Economics Institute estimates, other countries that are expected to benefit include northern Europe – particularly Germany and France – and Brazil, which could see a boost in their exports to China as the economy recovers.

• Travelers establish new corridors. As consumers are enjoying higher incomes and returning to some level of pre-pandemic comfort, they’re also starting to venture further from home to new locations. For travelers from the Asia Pacific region, the United States and Australia remain favorite destinations for spring and summer journeys. Beginning in late 2022, visitors to Hong Kong SAR started to increase, with the destination edging its way into the top 10 list and soaring to #3 in February 2023. Luxury travel experiences, such as splurging on high-end accommodation and luxury travel in places like France and Italy, will likely entice Chinese tourists emerging from a zero-COVID environment to rejoin the experience economy.

• Tourists continue to prioritize experiences. Preference for experiences over things persists, and travelers are demonstrating new demand for the unique. Potentially influenced by social media and entertainment, travelers are landing in lesser-known destinations in search of cultural immersion. As of March 2023, global spending on experiences was up 65% while spending on things is up 12% compared to 2019. Experience-oriented spending is surging in certain corridors where pandemic lockdowns have expired, but Chinese tourists who traditionally over-index on luxury retail compared to other tourists could provide a boost to goods spending across markets.

“In 2023, travel came roaring back in Asia as China re-opened its borders and other markets eased the last of their pandemic-era travel restrictions,” said David Mann, Chief Economist for Asia at the Mastercard Economics Institute. “As people around the world prioritize experiences over things, the strong demand for travel is expected to last far beyond the initial ‘revenge travel’ bump. As we look ahead to the peak summer travel season, the big question is whether flight and accommodation supply can keep up with demand.”

You can view the full Travel Industry Trends 2023 report here.

Latest exclusive video interviews9 HD Video Interviews from Routes Asia 2024 in Langkawi, Malaysia; Standard to Open Residences in Hua Hin and Phuket, Thailand; Video Interview with Amar Lalvani, Executive Chairman; 9 Exclusive Video Interviews from ASEAN Tourism Forum 2024 in Vientiane, Laos; 8 NTO Press Conferences from ASEAN Tourism Forum 2024 in Vientiane, Laos; 13 HD Video Interviews from World Travel Market 2023 in London, England; 5 HD Video Interviews from APG World Connect 2023 in Monaco, France; 15 HD Video Interviews from Routes World 2023 in Istanbul, Türkiye; and Electric Airport Taxis at Almaty Airport (ALA) in Kazakhstan - HD Video Interview with CEO.



Headlines: Tourism Malaysia Extends Data and Market Intelligence Agreement with Travelport  Rajiv Bhatia Joins Sabre as Executive Director - Asia Pacific Market Expansion  Copenhagen Home to First Fairfield by Marriott Hotel in Europe  Hawaiian Airlines' New Flagship Aircraft Enters Service  Travelodge Opens Fourth Hotel in Seoul, South Korea  Sabre Partners South Korean OTA, InterparkTriple  British Airways Upgrading Weather Data Available to Pilots and Flight Planning Teams  Air Astana Increases Flights and Resumes Services to Select Destinations  Jean-Marie Le Gall Appointed General Manager of The Woodward Hotel in Geneva, Switzerland  IHG Signs Second Kimpton Hotel in Portugal  Scoot Takes Delivery of First of Nine E190-E2 Aircraft from Azorra  Finnair Updates Summer 2025 Flight Schedule  Delta Air Lines Launches Thrice Weekly Munich - New York JFK Flights  Japan Coast Guard to Expand Fleet with Three Airbus H225 Helicopters  EL AL to Implement NetLine/Ops ++  Sabre to Upgrade Japanese Hotel Company's Distribution and Retailing Strategy  Air Astana Upgrades Safety Training with CEET and RFFT Simulators in Astana, Kazakhstan  Dean Dimitriou Returns to The Murray Hong Kong as Hotel General Manager  ASM Global Appoints Matthew Lazarus-Hall as EVP Entertainment & Content  Thai Lion Air Launches Bangkok - Kochi Flights; Appoints Çelebi as Ground Handler  Onyx Hospitality Signs Shama Serviced Apartments in Rayong, Thailand  AirAsia X to Resume Flights Between Kuala Lumpur and Changsha, China  IndiGo to Launch Kozhikode - Kochi - Agatti Flights  Neste Supplying Emirates with SAF at Amsterdam Schiphol Airport; Changi Next  Amadeus Completes Acquisition of Vision-Box  AirJapan Enhances Operations with Radixx PSS  New Zealand Men and Women Win Final Sevens Tournament at Hong Kong Stadium  Korean Air to Operate Seasonal Charter Flights Between Seoul Incheon and Taichung, Taiwan  Pegasus Airlines Launches Flights Between Ankara and Lisbon, Portugal  Smiths Detection Appoints Jerome de Chassey as President  AirAsia X Resumes Flights Between Kuala Lumpur and Xi'an, China  Cathay Cargo Resumes Freighter Flights from Saigon, Vietnam  SITA Publishes White Paper on Role of Biometrics in Air Travel  Cheval Collection Expands Global Hotel Alliance's Portfolio to Serviced Apartments  Langham Rebrands Hotel in Foshan, China  Aviation: International Passenger Demand Up 26.3%; Asia Pacific Airlines Report 53.2% Increase  International Air Cargo Demand Up 12.4% in February 2024; Capacity Up 16%  L'Occitane Group Appoints Green Yip as Regional MD - Travel Retail Asia Pacific  Le Bristol Paris Appoints Arnaud Faye as Executive Chef  Chris Kemlo Appointed General Manager of The Calile Hotel in Brisbane, Australia  Sabre Space Roadshow to Take Place in Delhi and Mumbai, India  Malaysia Airlines and IndiGo to Codeshare  Accor Expands Portfolio with 22 Hotels in Japan  Hong Kong Airlines Resumes Flights to Kagoshima, Japan  FlyArystan Receives AOC from Aviation Administration of Kazakhstan  Marriott Opens Resort on Perhentian Keci Island in Terengganu, Malaysia  AirAsia Malaysia Resumes Kuching - Penang and Kota Kinabalu - Penang Flights  Hong Kong Stadium Prepares for Final Sevens; International Fans Buy Over 40% of Tickets  ExecuJet Opens New MRO Facility at Subang Airport Near Kuala Lumpur, Malaysia  Michelle Freyre to Join United Airlines' Board of Directors  Lloyd's Inn Kuala Lumpur to Open 1 April  Korean Air Unveils New Maintenance, Aerospace, Cargo and Ground Handling Uniforms  SalamAir to Launch Flights Between Muscat and Tirana, Albania  IHG Unveils New Staybridge, Candlewood and Atwell Suites Prototypes in USA  DHL Aviation Extends Partnership with Worldwide Flight Services in France  United Airlines Installing Larger Overhead Bins on Embraer E175 Fleet  Not Everyone Wants to Use an App; Bonza Enhances Booking Options with Website  Amadeus Expands Travel4Impact Globally; Applications Open Until 30 April  Asia Pacific Airlines Carried 27 Million Int. Passengers in February; Cargo Demand Up 10.2%  Aris Maroulis Joins TUMI as Vice President Asia-Pacific and the Middle East  AirAsia Malaysia to Resume Flights Between Kuala Lumpur and Vientiane, Laos  First Courtyard by Marriott Hotel in Western Australia Opens in Murdoch, Perth  Qantas Appoints Nick McGlynn as Executive Vice President - Asia  HotelREZ Renews Partnership with Sabre Hospitality  Marlon Abeyakoon Appointed GM of NH Collection Maldives Havodda Hotel  Amex GBT Signs Deal to Buy CWT  Korean Air Connects Cargo Booking System with DHL Global Forwarding  Sean Seah Returns to Langham as Senior Vice President - Strategy, Technology and Innovation  Radisson Targets 25 Hotels in Morocco by 2030; Expands Role of Erwan Garnier  Airbus to Enhance Cybersecurity Capabilities with Infodas Acquisition  Mandarin Oriental Exclusive Homes Adds 16-Bedroom Chateau in France to Portfolio  Korean Air to Order 33 Airbus A350 Aircraft  AAPA to Host Turboprop Safety Conference in Kuala Lumpur, Malaysia  Nassau, Bahamas to Host Routes Americas 2025 in February  FlyAngola Appoints APG as Offline GSA in Portugal  AirAsia Cambodia Prepares for Take Off  Alex Schellenberger Joins Mandarin Oriental as Senior Vice President Brand  Ethiopian Airlines Opens E-Commerce Logistics Facility at Bole Addis Ababa Airport  Routes Americas 2024 Taking Place in Bogota, Colombia  Air Botswana Appoints APG as GSA in 16 Markets  Korean Air to Resume More Flights; Increase Services to Select Destinations  WestJet Appoints APG as Representative in South Korea; Airline to Launch YYC-ICN Flights in May  Courtyard by Marriott Hotel Opens in Fukui, Japan  Rolls-Royce to Expand Engine Build and Services Capacity in UK and Germany  United Airlines to Launch Los Angeles - Shanghai Flights; Increase LAX - HKG Service  Nine Exclusive HD Video Interviews from Routes Asia 2024 in Langkawi, Malaysia  AirAsia X Launches Direct Flights Between Kuala Lumpur and Almaty, Kazakhstan  Singapore Airlines Revamps Premium Economy Class with New Menu and Amenity Kit  Amadeus Completes Acquisition of Voxel  Minor to Rebrand NH Museum Quarter Hotel in Amsterdam, Netherlands  U-Tapao Airport (UTP) in Rayong / Pattaya, Thailand - HD Video Interview with Ampika Chadawong  IndiGo to Launch Flights Between Mumbai and Colombo, Sri Lanka  Perth Airport (PER) in Western Australia - HD Video Interview with Stephanie Juszkiewicz  China Airlines to Launch Flights Between Taipei and Seattle, USA  TUMI Launches Capsule Collection in Partnership with NEOM McLaren Extreme E Team  AirAsia Malaysia to Resume Flights Between Kuala Lumpur and Pattaya, Thailand  Thai Airways to Launch Flights from Bangkok to Colombo, Kochi and Perth  Munich Airport (MUC) in Bavaria, Germany - HD Video Interview with Michael Haeffner  Japan Tourism, World Expo 2025 and Japan Expo 2025 - HD Video Interview with Akira Watabe of JNTO  BBN Airlines Indonesia Receives Additional AOC from DGCA  Vietnam Airlines to Launch Flights from HAN and SGN to Munich Airport in Bavaria, Germany  Sabre Launches Booking Solution for New and Independent Travel Consultants  AirAsia Malaysia Launches A321neo Flights Between Kuala Lumpur and Perth, Australia  Saudi Arabia's Air Connectivity Program - HD Video Interview with Rashed Alshammari, Vice President Commercial  Lui Chong Chee to Succeed Bob Tan as Chairman of the Boards of CapitaLand Ascott Trust  Sabah Tourism Board - HD Video Interview with Julinus Jeffery Jimit, Chief Executive Officer  Berlin Airport (BER) - HD Video Interview with Simon Miller, Senior Manager Market Intelligence  IndiGo to Launch Flights Between Chandigarh and Dharamshala, India  Skyco Partners Airbus; Orders Six H175 Helicopters  Jumeirah Appoints Michael Grieve as Chief Brand Officer  Cam Ranh Airport (CXR) in Nha Trang, Vietnam - HD Video Interview with Le Thi Hong Minh  Mercure Langkawi Pantai Cenang - HD Video Interview with Hotel GM, Jasmine Keh  Courtyard by Marriott Phnom Penh Appoints Lenen Mar Porras as ADOSM  United Confirms Flights to Cebu, Philippines as Airline Expands Network  Jumeirah Soft Opens First Hotel in Saudi Arabia  IHG Signs Two Luxury Hotels in KAFD Riyadh, Saudi Arabia  Qatar Airways' NDC Content Now Available on Travelport+  Estelle Vassallo Moves to Italy as GM of Anantara Convento di Amalfi Grand Hotel  Aviation: International RPK Up 20.8% in January 2024  Amora Completes Refurbishment and Rebranding of Hotel in Brisbane, Australia  Scoot Unveils Embraer E190-E2 Routes  IndiGo to Launch Flights from Jagdalpur to Hyderabad and Raipur  Thailand Travel Mart Plus (TTM+) 2024 Opens Online Registration for Buyers and Sellers  9 Exclusive Video Interviews with VIPs at ASEAN Tourism Forum 2024 in Vientiane, Laos  8 NTO Press Conferences from the ASEAN Tourism Forum 2024 in Vientiane, Laos  13 Exclusive HD Video Interviews from World Travel Market 2023 in London, England  5 Exclusive HD Video Interviews from APG World Connect 2023 in Monaco, France  15 Exclusive HD Video Interviews from Routes World 2023 in Istanbul, Türkiye  Electric Airport Taxis at Almaty Airport in Kazakhstan - Video Interview with Co-Founder  Pictures from Miss International Queen 2023 Transgender Beauty Pageant in Pattaya, Thailand  Exclusive Video Interviews with 17 Miss International Queen 2023 Contestants  Living With One Eye - Six Years On by Steven Howard  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS Feed - Travel Industry News  Ticker - Travel Industry News  Travel Industry News Archives  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Subscribe to our Travel Industry News RSS Feed Travel Industry News RSS Feed from TravelNewsAsia.com. To do that in Outlook, right-click the RSS Feeds folder, select Add a New RSS Feed, enter the URL of our RSS Feed which is: https://www.travelnewsasia.com/travelnews.xml and click Add. The feed can also be used to add the headlines to your website or channel via a customisable applet. Have questions? Please read our Travel News FAQ. Thank you.

     
Advertising
Advertising
Copyright © 1997-2024 TravelNewsAsia.com