Travel companies expect sector to rebound as Americans spend more on trips: Report

American travel companies are predicting another bustling year as consumers show signs of shrugging off high inflation levels and concerns about the pandemic to prioritise spending on trips. As per a Wall Street Journal report, industry executives say there is little sign of a slowdown in the sector. This in turn has led to the Dow Jones Travel & Leisure Index rising 14.5 percent so far this year, compared with a 5.7 percent increase for the S&P 500. The strong holiday-quarter earnings report have led companies like Caesars Entertainment Inc., United Airlines Holdings Inc. and American Airlines Group Inc. recording a boost in their shares in recent weeks. Mark Hoplamazian, Chief Executive Officer (CEO) of Hyatt Hotels Corporation, told the Wall Street Journal the sector is “showing no signs of slowdown whatsoever.” On the other hand, Tripadvisor CEO Matt Goldberg cautioned against holding out too much hope. He added that people may adjust their travel plans looking at the prices, meaning there could be fewer, shorter trips. “The weekend getaway is going to be really interesting. But ultimately, travellers are protecting the discretionary spend in travel at the expense of other discretionary categories,” he stated. Factors like raise in wages, flexible remote-work policies, early retirements by the baby boomer generation and looser travel restrictions in Asia can also play a big role in boosting travel. Airbnb CEO Brian Chesky said travellers from China will be “the big prize” this year. “There are going to be hundreds of millions of people that want to leave China to travel the globe,” he said. Another move affecting the travel boom is the return of many executives to China for the first time since the pandemic began. A Wall Street Journal report had stated that Apple chief Tim Cook and Mercedes Benz chairman Ola Källenius are among the business leaders who are expected to visit the Asian giant in the next few weeks. Cook is expected to be at the China Development Forum, which is set to be held in March. Volkswagen CEO Olive Blume had already been to China as part of a business delegation who travelled with German Chancellor Olaf Scholz. However, business travel still has a way before it can recover fully. According to the U.S. Travel Association, corporate travel budgets are still lower than 2019 levels, even as business travel spending steadily rises. Read all the Latest News, Trending News,  Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.