Trivago: The Summer of 2022 will be The Peak Season for The Tourism Industry

According to the financial report of travel search website Trivago, the summer of 2022 will be the peak season for the tourism industry, because tourism demand has been suppressed for two years, and the public is eager to go out.

Trivago (TRVG-US) reported a better-than-expected fourth-quarter profit after the bell on Tuesday, turning a profit in 2021 after a big loss in 2020.

Trivago Chief Financial Officer Matthias Tillmann said in an interview that travel operations around the world may recover at different speeds, but four areas may lag: international travel, travel to Asia, travel to major cities, and business travel.

Overall, international travel continues to lag and “is expected to catch up later this year,” Tillmann noted.

The region where the global travel recovery has been particularly slow has been Asia, where travel restrictions have made travel more complicated and travelers have been discouraged.

Another area where the recovery is lagging is in big cities. Since the start of the Covid-19 pandemic, big cities have been less popular with travelers than natural attractions. While Tillmann had anticipated a rebound in big-city travel, at least compared to beaches and other more wilder attractions, everything is still going relatively slowly.

Tillman said city travel is the last of all travel themes, and the price gap between attractions between cities is starting to widen. “In some cities, such as Paris, prices have risen by only a few percent; larger cities, such as Dubai or New York, have risen by more than 30 percent.”

Tillman doesn’t know why prices are rising faster in some regions, but he believes that labor shortages in the tourism industry lead to inflation, so differences in labor supply across regions may affect price differences.

The last area with a slow recovery is business travel.

Tillman believes that most companies are still prioritizing remote working models for now, with many trade shows being canceled or being done virtually, “so overall, we don’t expect business travel to return to 2019 levels this year.”

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Summary

According to the financial report of travel search website Trivago, the summer of 2022 will be the peak season for the tourism industry, because tourism demand has been suppressed for two years, and the public is eager to go out.

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