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Travel and Hospitality Technology Sector Report

Travel in 2020 has looked nothing like the picture anyone could have predicted at the end of 2019, but most analysts and commentators expect overall travel and tourism to start on a positive trajectory in 2021 and return to 2019 levels within a 3-4 year timeframe

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Sector Report: Travel and Hospitality Technology Q3 2020

EXECUTIVE SUMMARY | Travel and Hospitality Technology Q3 2020

2020 – A Year Like No Other for the Travel Industry

  • Travel in 2020 has looked nothing like the picture anyone could have predicted at the end of 2019
  • After a decade of uninterrupted above-GDP growth since the double impact of the financial crisis and swine flu impacted growth in 2009, the travel sector has been hit harder than almost any other category by the global pandemic
    • Only 1/3 of global commercial aircraft are in service, and airlines have reported revenue falls of up to 90%
    • International tourism travel is expected to be down as much as 80% for the year
    • Worldwide tourism expenditure in 2020 is expected to fall around 50% vs 2019
    • The US hotel sector has been hit 4x harder than after the 9/11 terrorist attacks
    • Governments have been forced to provide unprecedented levels of support, including well over $100Bn for US airlines alone
  • However, within this bleak picture there have already been bright spots of returning demand in areas where “socially distanced” travel is still possible
    • Out of city short-term rentals are seeing significant demand – with September occupancy levels in many areas of both North America and Europe as high as a typical August
    • “Adventure travel” has seen higher demand since July than the corresponding period in 2019
    • Volumes for outdoor pursuits such as camping, RV sales and RV rentals are at record levels
  • Looking ahead, there is significant uncertainty as to the shape of any recovery, but most analysts and commentators expect overall travel and tourism to start on a positive trajectory in 2021 and return to 2019 levels within a 3-4 year timeframe
  • In the shorter term, the winners will be those companies that can most quickly adapt to the “new normal”, delivering the now-universal requirement for safety while still providing an experience travelers are willing to pay for

GCA: The Leading Advisor in Travel and Hospitality Technology Ecosystem

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