No impact of global inflation on travel demand: RateGain's PULSE report for May

Travel demand continues to stay strong across the world during May even in the wake of high inflation and an anticipated global slowdown due to lockdowns in China as well as the ongoing conflict in Europe, according to RateGain Travel Technologies' latest PULSE report. 

The report shares insights by analysing demand from over 1,91,000 hotels as well as monitoring future travel demand from over 60 cities.  

The finding of this month's report is in line with the recent data from the United States Commerce Department according to which inflation-adjusted spending on goods fell 0.5 per cent while services rose 0.6 per cent, noted RateGain in an official statement. Not adjusted for inflation, the gain in services spending was broad-based and led by components including international travel, restaurants and hotels.  '

The report added that India continues to see its monthly bookings grow with tourist destinations up north as well as down south attracting more bookings, as families plan to step out during the annual summer break for the first time in two years. 

While hill stations were already witnessing a spike of 100-150 per cent in April as per the last report, the same destinations are now witnessing a growth of 50-60 per cent. When compared to May 2021, India's bookings have grown by 178 per cent even though the country is witnessing high cost of travel. 

The capital city of Delhi continues to record double-digit growth in bookings and a 65 per cent increase in ADR (Average Daily Rate) when compared to last month, even as the national capital battles a record-breaking heat wave.  

"Despite high airfares, a looming recession, we saw a month-on-month growth of 38 per cent in bookings across the most popular 20 destinations in the month of May led by a massive surge of bookings in Turkey, Jordan and Malaysia followed by other countries in Asia such as Oman, Singapore and Indonesia," noted RateGain.

Thailand and Singapore which had very strict COVID protocols and relied heavily on inbound arrivals have seen an increase of 846 per cent and 465 per cent YoY when compared to May 2021.

According to the report, even with a 60-70 per cent price hike predicted over the next three months, South East Asian Cities Bali and Kuala Lumpur are seeing the fastest growth in bookings followed by Koh Samui and Pattaya as international travellers land in Asia Pacific region for the first time in 2 years. "We are witnessing a similar trend in Central Europe where Zurich, Munich and Berlin continue to see high," it added. 

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