Global Travel Outlook for 2023

Good morning from Skift. It’s Thursday, December 22, and here’s what you need to know about the business of travel today.

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Episode Notes

The travel industry is still facing hurdles such as a possible worldwide recession on its path to a full recovery. So what is the state of travel entering 2023? Skift Research delves into the topic and more with its newly published annual outlook for the travel industry, which features global revenue forecasts for sectors including airlines, hotels and cruise lines.

Senior research analyst Seth Borko writes that travel remains a mixed bag heading into the new year, with pent-up demand catapulting the Americas back to 2019 levels while Asia is beginning its recovery. But every region of the globe is seeing potential for growth, Borko adds.

The outlook also includes projections for cross-border trips between 2023 and 2025 as well as a look at how economic uncertainty could affect the travel industry.

Next, rising Covid cases in recent weeks are making some travelers cautious about going on cruises. Still, Carnival believes that’s not deterring consumers from booking cruises, with the company seeing a surge in bookings for 2023 sailings, reports Associate Editor Rashaad Jorden.

Carnival CEO Josh Weinstein didn’t provide any specific booking figures during Wednesday’s earnings call that reported its fiscal fourth quarter ending on November 30. But he said the desire of many travelers to put Covid behind them has contributed significantly to the booking surge. Weinstein added that Carnival posted a record in revenue per diem during the fourth quarter, adding the company placed 90 ships, roughly 35 percent of its fleet, back in service this year. Carnival generated $3.8 billion in revenue during the fourth quarter, which was 80 percent of 2019 levels. However, the company posted a $1.1 billion adjusted net loss.

We end today with a look at the biggest spending travel brands on U.S. TV in 2022, through November. Airbnb has taken the top spot, reports Executive Editor Dennis Schaal in this week’s Online Travel Briefing.

Airbnb spent roughly $87 million on ads on national TV in the U.S. during the first 11 months of this year, according to TV analytics firm iSpot.tv. Schaal writes that Airbnb’s heavy emphasis on TV ads is not surprising, noting the company has been vocal about preferring brand advertising on TV to search engine marketing.

However, iSpot.tv found that budget hotel brand Choice Hotels has been the most seen travel company on TV throughout the U.S. in 2022. Choice Hotels ran 139 more ads in the first 11 months of this year compared to the same period in 2021.