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The travel industry is expected to be hot this winter. This means that there is no price relief for travelers.
“We’re seeing a lot of demand,” Expedia Group ( XPE ) CEO Peter Kern told Yahoo Finance Live (video above).
“A lot of demand domestically, a lot of demand internationally…[with] Still some tightness in the supply in the air. “Unfortunately, this means that prices will remain high during the summer,” he added.
Kerr says some trends have returned to pre-pandemic levels, such as shorter stays and bigger cities being popular again.
However, the industry is witnessing at least one structural change.
“A lot of people want to travel in general. It’s not just revenge travel anymore,” Kerr said.
In April, United Airlines ( UAL ) reiterated its full-year guidance saying “demand remains strong, particularly globally as we double our domestic growth.”
Days later, American Airlines CEO Robert Isom told analysts: “We’re seeing a strong demand environment this winter, and we’re very confident that will continue going forward.” If there’s one thing the pandemic has taught us, it’s this. People want to travel naturally. “
While retailers like Walmart ( WMT ) and Target ( TGT ) are signaling that consumers are ‘shopping’ as their pocketbooks are squeezed, the travel industry isn’t doing the same.
“So far, and this is really around the world, we’re not seeing a real fallout from anything we would call economic pressure,” Expedia’s Peter Kern said. “Will he support himself forever? Who knows.”
“Travel seems to remain at the top of the list of things people want to spend,” he added.
Innes is a senior business reporter for Yahoo Finance. Follow her on Twitter @ines_ferre
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