How Long Can Tour Operators Absorb Costs Vs. Prolonged Inflation?
Skift Take
Tour operators believe inflation isn't slowing down travel demand. But they're fighting hard to ensure their sector's recovery won't take a hit if they can't avoid passing on rising costs to consumers with limited travel budgets.
Tour operators face a delicate balance in these times of protracted inflation, growing their businesses in recovery mode but making sure their customers never recoil from sticker shock in prices of tours.
Inflation has threatened to slow down travel industry's recovery this summer, with corporate executives warning that surging prices could dent travel spending while also impacting where meeting planners are opting to hold events.
Although inflation eased off of a 40-year high last month — dropping from a 9.1 percent annual rise to 8.5 percent, according to a report on Wednesday on the Labor Department's Consumer Price Index — tour operator executives acknowledge that inflation
