Over the past few weeks, we have listened to several travel company earnings calls. Brands such as Airbnb, Royal Caribbean, Tui and Booking.com have all reported an increase in their average daily rates.
In this clip from our May Travelcast, Spike Insight’s Jon Walton joins TTC Directors Martin Alcock, Matt Purser and Adam Pennyfather to discuss the reasons for the increase and whether it’s sustainable or an effect of revenge spending.
Key highlights:
- There is a mix effect – some people are booking longer holidays but fewer times a year
- Customers are upgrading – after lockdown, they are treating themselves to better hotels or flights
- Revenge spending is driving up the average daily rate – next year things might look very different
- The cost of living crisis may mean that things aren’t as positive next year
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