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The pool at Turtle Bay Resort on Oahu’s North Shore.
Amanda Macias | CNBC
Consumer prices for hotels, motels and other accommodations fell 5% in November from October, according to the latest government inflation report, a sign that rising travel demand has lost some summer momentum.
Air fares also fell by 0.6 percent month-on-month. Still, the price index for hotels, motels and lodgings is up 3 percent from a year ago, and airfares are up 36 percent.
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The freeze comes in a year where the travel industry has experienced significant tailwinds after two years of turmoil due to Covid. As pandemic shoppers turned to post-pandemic travelers, pent-up travel demand began to push retail activity.
But with a possible slowdown on the horizon, the decline in travel prices in November could be an indication of further declines in demand.
The travel industry has seen a slowdown in demand after the summer rush. JetBlue He said in a regulatory filing last Tuesday that the strong demand he had expected in his previous financial outlook “performed below expectations.” The airline’s updated outlook showed growth “at the lower end of its previous guidance” of 15 to 19 percent revenue growth.
United Airlines CEO Scott Kirby noted the decline in demand. In an interview with CNBC last week, he said the demand for business travel is “even though our overall revenue is still increasing.”
Although demand for travel has slowed, revenue in the industry has remained stable due to high prices. Thanksgiving subscriptions were down 7% compared to 2019, but higher fares led to a 3% increase in revenue, according to Adobe data.
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