Skip to main content

Demands for air travel are up this summer, but can the airlines handle it?

The demand that we’ve seen over the last five weeks has been historic. We’ve never sold more tickets in any period in [our] public history.” 

--- Ed Bastian, CEO of Delta Air Lines (April 2022).


Have you booked a ticket for summer travel already? You might regret it if you have not done so yet. I was shocked to see that the ticket I tracked from the greater L.A. area to Orlando in June had gone from $300 to $1,200 in just a few weeks. As a reference, I could usually find a round-trip economy ticket between L.A. and most destinations in Europe and Southeast Asia for $600 - $1,000 before the pandemic. 


It’s not just the price; the pace is picking up too.


American Express just released its first-quarter report (Demos, 2022), showing that American consumers are fueling the recovery. Large corporate travel spending or international consumers, however, have not yet resumed to the 2019 level. Here are a few highlights:


  • Americans spent 20% more on travel & entertainment (T&E) in the first quarter of 2022 than in the same period of 2019 after adjusting for exchange rate moves. 
  • U.S. consumers’ travel bookings were up nearly 50% compared to 2019. 
  • Millennials and Gen-Zers led the recovery, up 56% than 2021. 
  • Millennials and Gen-Z cardmembers also used the $200 hotel credit benefits twice as often as the other groups. 


Can airlines meet the surging consumer demands? 


The airline industry faces many changes still (Chokshi, 2022; Georgiadis & Ch├ívez, 2022). Besides the rising fuel prices, the labor shortage will linger for a while. For example, American Airlines only hired 600 out of 2,000 pilots it aimed to bring on board so far. The airline is also dealing with a lawsuit launched by the union representing the pilots. Heathrow, the U.K.’s busiest airport, is now looking to hire an additional 12,000 workers to cope with the surging demands in the summer. Despite the high demands in the summer, many airlines must trim their schedules to avoid cancellations or delays.  


An uneven recovery might turn out to be good for the airline industry.


As suggested in this magazine’s April issue, countries and destinations across the globe would experience a different pace of recovery due to the destination’s reopening agenda. When North America and Europe are opening up ahead of others, getting seasonal workers through temporary non-immigrant working visas can be a short-term solution. 


Besides higher prices and busier traffics, what else do you anticipate in air travel this summer?

Note: This viewpoint was first published in the Hospitality News Magazine - Hotel, Dining, and Eatery Trends; The picture was downloaded from The Guardian


  1. This comment has been removed by the author.

  2. I will share it with my other friends as the information is really very useful. Read more info about Panhwar Jet. Keep sharing your excellent work.


Post a Comment

Popular posts from this blog

Luxury vs. Millennials and Their Technology: The Ritz-Carlton (By Julia Shorr)

Embodying the finest luxury experience, The Ritz-Carlton Hotel Company, LLC has been established since 1983. In 1998, Marriott International purchased the brand offering it more opportunity for growth while being independently owned and operated. They are known for their enhanced service level as the motto states, “Ladies and Gentlemen serving Ladies and Gentlemen”. The luxury brand now carries 97 hotels and resorts internationally and is attempting to keep the aspects of luxury while keeping up with the trends of the technologically improving generations. The Varying Demographics of the Target Market The Ritz-Carlton’s typical target market includes: business executives, corporate, leisure travelers, typically middle-aged persons and elders, and families from the upper and upper-middle class section of society .   This infers a large range of types of travelers in which all are similar in that they are not opposed to spending extra for the luxurious ambiance. However, with

The challenges of SB 93 (California Senate Bill No. 93) will impose on the employers and their human resource management team (by Brittany Schaffer)

The COVID-19 pandemic started in early 2020, and it has caused massive changes within a short period of time. One of the most rememberable effects of the COVID-19 pandemic was that businesses had to come to a complete halt, forcing them to lay off employees. California's unemployment rates went up.  Now that the stay-at-home orders have lifted, people start to come out. Businesses are now reopening, looking to rehire their laid-off employees. Before the pandemic, employers had the option of recalling only a certain number of laid-off employees they would want to rehire based on employees' job performance. That option had been changed after Governor Gavin Newsome signed into law - Senate Bill 93, which went into effect on April 16th, 2021. The California Senate Bill No. 93 (SB 93) According to SB 93, companies in specific industries, mainly the hospitality industry, have the obligation to provide job opportunities in written form to qualified employees being laid off due to COVI

Want to win in future competitions? Invest in data-driven decisions now

Speaking of the permanent changes in the hospitality industry, many people will probably agree that demands for “bleisure”/“work-from-anywhere” travel and contactless self-service will continue to grow in the near future. Not everyone, however, realizes that data-driven decisions will become a key driver for growth in the industry, which has already affected how we do business now.   Automatic service enables businesses to capture more operational and consumer data for business decisions   One advantage of using automatic service comes from its ability to spontaneously capture and store real-time operational and consumer data for additional analysis. In the old-time when businesses still relied on workers to serve customers, operational data were collected usually through careful book-keeping, documentations, and observations; consumer data through market research were often limited to their perceptions, behavioral intentions, or past experience.     Now that automatic service is provi