Comment: Strong momentum triggers positive vibes

When we hosted last year’s Travel Weekly Future of Travel Conference, the Bank of England was predicting a recession for the fourth quarter and throughout this year. It was a pretty bleak outlook.

Thankfully, those predictions didn’t come to fruition and, remarkably, the industry has had an incredibly strong year against the backdrop of the cost-of-living crisis.

As leaders from across the sector gathered at Google last week for our 2023 Future of Travel Conference, many travel companies were reporting bookings back or even above 2019 levels, and at record prices. Thanks to the unexpectedly strong momentum in the market, operators are adding capacity and extending seasons, while retailers are opening new high street outlets and taking on more staff.

In a neat bit of timing, this year’s conference coincided with the Bank of England’s decision not to increase interest rates, suggesting they may be near their peak and pressure on mortgage holders and consumers heading into 2024 could start to ease.

No wonder the mood in the room of 200-plus delegates was notably upbeat. We have heard time and again that a holiday is one of the last things people will give up, and speakers agreed that still appears to be the case. There is an expectation that capacity hikes may flatten out some of the price inflation seen this year, while offering value for money will continue to be key. But at the end of the conference, it was uplifting to see many of the guests leave with a spring in their step.

More: Offering value for money key amid cost-of-living crisis, conference hears

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