What does the future look like for the travel industry as it rebounds from the COVID-19 pandemic? As industry experts continue to grapple with this question, new research, predictions and suggestions are emerging that point to a positive outlook — though many hurdles remain.
A Positive Travel Industry Outlook for 2022
Just-released research from the World Travel and Tourism Council (WTTC), for one, indicates that the travel and tourism sector could actually see a significant rebound this year.
According to the WTTC, if vaccine and booster rollout programs continue “at pace,” and if international travel restrictions are eased to increase the number of people who can visit destinations without a quarantine period, then the sector’s contribution to the global economy could reach $8.6 trillion for 2022. That is just 6.4% lower than pre-pandemic levels, when travel and tourism generated almost $9.2 trillion. This would be a massive improvement over 2020 figures, when the pandemic caused the sector to drop 49.1%, a loss of nearly $4.5 trillion.
In addition, WTTC research indicates that travel and tourism employment could exceed 330 million jobs this year, just 1% below pre-pandemic levels (and an increase of 21.5% compared to 2020).
“Our latest research clearly shows that there is light at the end of the tunnel, and 2022 is certainly looking more positive in terms of both jobs and the economy,” said Julia Simpson, president and CEO of WTTC. “However, there is much more work to be done if we are to bring back all the jobs lost and achieve a full economic recovery. With so much at stake, it’s vital we continue driving the recovery of our sector. Governments must shift their risk assessment from entire countries to the individual traveler and allow the fully vaccinated to travel freely."
Our latest research clearly shows that there is light at the end of the tunnel, and 2022 is certainly looking more positive in terms of both jobs and the economy.
New data from STR seems to confirm that the travel industry is on an upward trajectory: According to the company, U.S. hotels made a lot of progress on profitability in 2021, reaching 52% of comparable 2019 levels.
“Each passing month we saw revenues and profits continue on a positive, upward trend,” said Raquel Ortiz, assistant director of financial performance for STR. “Profit margins were relatively strong throughout the year, remaining close to pre-pandemic levels.”
The Future of the Industry
The U.S. Travel Association — which held its State of the Travel Industry address on Feb. 2 — agrees that the industry may finally be turning a corner, though there is much more work to be done along the path to recovery.
We have come so far. The worst of the pandemic is truly behind us. But there is still a lot of work ahead.
“Recent data from Destination Analysts found that more than 80% of Americans are excited to plan a vacation in the next six months,” said Roger Dow, president and CEO of U.S. Travel. “We have come so far. The worst of the pandemic is truly behind us. But there is still a lot of work ahead.”
Among the challenges still facing the industry is the ongoing labor shortage, with leisure and hospitality alone still down 1.7 million jobs.
Part of the process of filling these positions, Dow notes, is taking a hard look at the industry’s hiring practices, benefits and career opportunities — as well as the difficulties that come with working in travel.
“As a whole, we need to be more flexible with scheduling and do more to promote a work-life balance,” Dow said. “Companies may need to consider providing workers with the essential skills and experiences that lead to successful and rewarding careers. We can and must show candidates that this is a phenomenal industry to work in, and that there are a lot of opportunities for advancement, career growth and so much more.”
Other key issues that U.S. Travel predicts will be critical to the future of travel include improving the overall travel experience — for instance, streamlining security checkpoints with biometric identification technology; expanding trusted traveler programs; increasing TSA staffing and improving airport infrastructure; implementing sustainability investments such as electric vehicle infrastructure and sustainable aviation fuel; and diversity, equity and inclusion efforts.
