Anderson says:
“Holiday travel in 2022 and travel more broadly in 2023 will continue to be expensive and most likely uncomfortable!
“Weekly average TSA checkpoint numbers have 2022 traffic continuing on par with 2019 numbers, with some 2022 days exceeding 2019. Domestic airline capacity is down about 15% from 2019 enplanements with international capacity reduced even more – indicating a further tightening of the supply-demand gap. U.S. airlines have reduced capacity to help mitigate staffing levels with several airlines reducing regional flight frequency to ensure crew and pilot availability to major routes.
“At the same time, we see continued strong demand for travel as evidenced by forward looking hotel rates. Hotel prices for typical high demand periods like Art Basel in Miami, New Year’s Eve in Times Square – as well as events into 2023 like South by Southwest and Sundance – continue to have extremely high prices, much higher that we have seen in the past.
“All these metrics point to continued elevated prices for travel into 2023 unless something dramatic happens with consumers more broadly.”
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Chekitan Dev, professor of marketing and management, is an expert in the hospitality, travel, and tourism industries.
“With a widely predicted recession in early 2023, persisting record inflation, and Americans’ savings gutted by a steep drop in the stock market, hospitality brands are well advised to rethink their holiday season marketing strategies.
“Research tells us that, while in boom time higher priced offerings sell out first, in lean times customers typically look for the best deals that offer the most bang for their buck. Therefore, for most segments of the market, value marketing will be required for businesses to survive and thrive.
“The most successful marketing strategies will lead with offers that feature standard no frills rooms, lower rate categories, omnichannel access by keeping all booking paths open including online travel agents coupled with an increase in promotional spend to remind customers that they do indeed deserve a break over the holidays, which they can afford to pay for without breaking the bank.”
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