TRAVEL ENTHUSIASM HELD STEADY TOWARDS THE END OF 2022, ALTHOUGH EUROPEAN TOURISM IS NOT YET OUT OF THE WOODS.
European travel recovery persisted in the third quarter of 2022, held up by a strong pent-up demand that could have extended the summer season due to excess savings during the pandemic. Moreover, an unusually warm winter allowed households to reduce gas consumption, which favoured maintaining stocks in most European countries and drove down gas prices to pre-Ukraine war levels.
Risks, however, remain skewed to the downside due to the ongoing war in Ukraine, the geopolitics-induced energy crisis, high and persistent inflation showing little signs of abating and a looming economic recession. Despite less favourable conditions, European tourism managed to weather the storm, with the latest data indicating a recovery of 75% of 2019 travel volumes in 2022. Looking forward, international travel to Europe is still forecast to achieve pre-pandemic levels in 2025, while domestic travel will do so in 2024.
Now, as European short-haul travel is well on its way to recovery, the travel industry’s attention has turned to long-haul travel.