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Is travel sector ready for a turnaround?

Team Veye | 21 Jun 2021

Is travel sector ready for a turnaround?

While living through the uncertainty of a global pandemic, reviving the travel industry becomes quite imperative for overall economic recovery.

As the travel industry bounces back, targeting the right audiences with the right business plan becomes far more important.

Economic recovery relies on making sure Aussies who can book domestic are spending big, and that suggests hyper active role of tourism bodies. Even for international destinations and inbound, it is imperative to keep people dreaming so that when the time does come, the bookings quickly follow.

The Australian Competition & Consumer Commission's (ACCC) Airline Competition in Australia in its report has revealed that increased consumer confidence, lower airfares and greater competition between airlines have helped drive the recovery of the airline sector.

 Qantas is now seeing a sustained rebound in domestic travel demand. And the performance of its Freight and Loyalty divisions continues to drive the Qantas Group’s recovery from the impacts of COVID-19.

Consumer confidence in domestic travel is proving more resilient compared with earlier in the pandemic, despite the temporary tightening of some border restrictions.

Corporate travel, including the small business segment, continues to recover and is now at 75 percent of pre-COVID levels. Sustained domestic recovery is further driving strong cash generation.

In another encouraging sign for the travel sector, Air New Zealand has revealed that it has managed to achieve a positive EBITDA position since Sep 2020, despite ongoing travel restrictions.

There has been much to celebrate in recent months, with the opening of travel bubbles on the Trans-Tasman and to the Cook Islands, and the continued strong demand across its Domestic network

The demand on the airline’s Domestic and short-haul networks is currently showing positive momentum, continuation of this momentum will depend much upon further border restrictions or lockdowns if any.

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