After months of slow improvement in consumer confidence across the UK, August regressed slightly to -12.4, 11.7% down from July. But what has caused the slight U-turn?
Come fly with me
For months now we have seen the travel traffic light system impacting on the growth of tourism. August was no exception as the return to normal continues. However, with the pandemic still very present, there are fears around international travel with more people turning to mid-level airlines like British airways and Emirates rather than their cheaper counterparts. This has mainly been driven by cheaper airlines struggling to issue compensation in light of cancelled flights.
When comparing to pre-pandemic levels (2019), searches around cheap flights and holidays abroad are down 63%. True flight figures published by Eurocontrol suggest flight activity is around 34% down from 2019. When can we anticipate travel returning to normal? Eurocontrol have published several scenarios which suggest pre-pandemic tourism will return in 2023-2024. However, Freemavens CCI, which aggregates and models against travel data, search, and social data, suggests that tourism is likely to return to normal in 6-8 months if the current rate of growth continues. So, watch this space.