Pent-Up Demand — People want to travel. That time is finally here.
They want to take a trip, board a flight, grab an Uber, stay at a hotel, eat at restaurants, and see the world again.
This is the very definition of pent-up demand for travel. While this demand situation is usually just another symptom of a recession, interestingly, the culprit this time was C-19.
Lockdowns, travel restrictions, bureaucracy at the borders, and other exacerbating factors dissuaded many of us from even attempting to make travel plans for the last 24 months or so.
But according to the CEO of American Airlines, now is the time. They see a booming quarter in the coming months, and the guidance from the major hotel brands echoes this sentiment. Leisure and business travel are already up, and travel industry insiders predict even more of a boom in the coming months.
Especially now that the TSA mask mandate is dead (until the next variant), consumers are eager to get out and update their IGs with selfies taken on crowded beaches and popular travel destinations.
That being said, it won’t be all champagne and sunshine.
This might be an interesting summer for travel: some experts predict jet fuel shortages at some of our airports, particularly in the Northeast.
Not only will JP-8 be really expensive and make your trip cost a few extra bananas, but it also might be a limiting factor for you to even take off to get to your destination.
Hear me out: this might actually help out the airlines.
As things pick up for the summer travel season, your airline experience might be well-served by a touch of demand destruction caused by higher prices due to jet fuel problems.
Having fewer passengers makes it easier for the airlines to operate, particularly if they can charge more per seat mile. On the margin, they make more money off of us, and they have fewer needy pax to service.
Lesser travelers equals more on-time flights, and last I checked, those $hitty airplane seats are more comfortable when your flight is on time. Those cheap biscotti cookies taste better when your flight is on time.
It might be hard to see the bright side of an extra $75 to fly from NYC to Miami, but what is your time worth?
Sitting on the tarmac at Laguardia waiting in the summer heat because your flight is delayed is miserable. Trust me; I’ve done it. I bought the t-shirt.
Let’s hope that pent-up demand is not too overwhelming for the travel industry this summer.
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