Travel companies expect growth to slow in 2024

With the exception only of outbound travel from China, 2024 global leisure travel is expected to return to "normal" in 2024.

Although an overall increase in travel costs of 3.5% is expected in 2024 vs. 2023, airfares and car rental rates have softened and hotel RevPAR and ADR grew by less than 5% YOY in 2023..

Airbnb has said it expects a boost from international travel in 2024, but growth in nights booked in 1Q2024 is expected to be down from 4Q2023.

Based on Tourism Economics' forecasting model, the U S Travel Association projects that 2024 global travel volume will be at 98% of 2019 level, not achieving full recovery until 2025, and that travel spend when adjusted for inflation won't recover until 2026.

And the US share of the global travel market continues to shrink, as shares pf competitors like France and Spain are growing.

Deloitte expects these 5 trends to have a significant effect on world travel in 2024:

• High interest rates, high input prices, weather events and staffing issues will challenge hotels and airlines.
• Although business travel may recover to 2019 levels, high costs will continue to constrain growth.
• Prevalence of bleisure trips by workers will continue to affect in-destination needs and preferences.
• With slowing travel growth, marketing will need new strategies and tighter targeting.
• Gen AI will be omnipresent, but the most valuable applications could be in advertising strategy, marketing content creation and personalization.