Now that the omicron Covid variant is waning, consumers are going out and spending, as was evident in the 3.8% rise in retail sales reported for January this week.
And travel is one area seeing a big gain.
“People really want to make sure they travel while they can,” Mark Matthews, marketing manager for Maui Seasons, a private tour company in Hawaii, told The Washington Post. “Who knows when the next strain is going to come and what it’s going to look like?”
Maui Seasons’ bookings have surged 65% year to date.
The World Travel and Tourism Council predicts that domestic travel spending could hit $1.1 trillion this year, topping pre-pandemic levels by 11.3 percent, according to Travel Pulse.
“Our latest forecast shows the recovery significantly picking up this year as infection rates subside and travelers continue benefiting from the protection offered by the vaccine and boosters,” the trade group's president, Julia Simpson, said according to the publication.
“As travel restrictions ease and consumer confidence returns, we expect a welcome release of pent-up travel and tourism demand.”
Business Up at Theme Parks, Casinos, Airlines
Disney’s (DIS) revenue from its theme parks more than doubled in the quarter ended Jan. 1.
Casinos are seeing increased business, too. “Premium customers, after being cooped up for 2020 and the first part of 2021, are traveling and spending again with a vengeance,” said Wynn Resorts (WYNN) Chief Executive Craig Billings, according to The Wall Street Journal.
Airlines also are reporting strengthening customer demand. "Omicron is expected to temporarily delay the demand recovery 60 days,” Delta Air Lines (DAL) CEO Ed Bastian said last month.
“But as we look past the peak, we are confident in a strong spring and summer travel season with significant pent-up demand for consumer and business travel."
Travelers Are Thinking Big
Travelers are thinking big now, experts say. “People still have the means to spend. They just needed a catalyst, and now they have one,” Aneta Markowska, chief economist at Jefferies, told The Post.
“They are sitting on the biggest cash cushion they’ve seen in years. And that’s not just the wealthy: it’s 80% of the population.” She’s headed for the Turks and Caicos this spring, her first vacation in two years.
Travis Berninger, an Orlando pharmacist, told the Journal that he and his husband, a pet-store manager, are on a cruise, their first major trip in six years.
“Being able to work through the pandemic made us feel we could afford a real vacation,” Berninger said. “We are planning on booking the next cruise while we’re on this one.”
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