Travel is Roaring Back – but the Industry Might Not Be Ready for a Boom – CNBC

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Travel is roaring back – but the industry might not be ready for a boom

Travel bookings and inquiries are surging, say travel insiders, in an upward trajectory that, if realized, may both benefit and challenge travelers in the coming year. 

Travel in 2022 will be even busier than before the pandemic, said Brandon Berkson, the founder of the New York-based travel company Hotels Above Par.

“People want to make up for lost time,” he said, adding that potential customers have stated their desire to travel next year is greater than ever before.

Ben Drew, president of the TripAdvisor-owned travel company Viator, said in December that the demand for upcoming travel is “extraordinary.”

Beach and mountain destinations are popular, with bookings rising 1,665% to Tulum, Mexico (seen here) and nearly 700% to Denali National Park from 2019 to 2021, according to Viator.

“Travel came roaring back,” he said. “Even in the face of omicron, travelers are booking more experiences than at this time in pre-pandemic 2019.”

Viator’s 2022 data shows bookings are also increasing from summer to fall, a time when travel typically slows down.

While acknowledging 2022 may “come with challenges,” Drew said he expects it to be “a chapter of resilience, resurgence and growth for the travel industry.”

Is the industry ready?

While news of a business boom is likely music to the beleaguered travel industry’s ears, it could be problematic if it happens too quickly, said Manoj Chacko, executive vice president of the business management company WNS.

“The speed and force of demand could catch some travel industry players off guard,” he said. “Airlines, for instance, could struggle to re-hire pilots. Moreover, pilots might need additional training and skill refresher programs.”

Airlines aren’t the only part of the travel sector that may struggle to hire staff this year.

Some 62 million travel-related jobs were lost in 2020, according to the World Travel & Tourism Council. While many of these jobs are now returning — in October, the WTTC estimated the industry’s employment levels would rise 18% in 2022 — former employees aren’t rushing back to their old roles.

Burned by industrywide layoffs, some workers settled into other industries. Others are unwilling to take front-line positions in an era of rising customer anger and aggressive behavior.

Spain, Italy, France, the U.K., Portugal (seen here) and the U.S. are some of the countries facing staff shortages in the tourism industry, according to the WTTC.

A push for tech

A dearth of workers underscores the industry’s shift, which started long before the pandemic, to using technology to perform certain jobs in the travel sphere.

Tasks such as delivering room service and cleaning airports can be done by robots, said Rachel Fu, chair of the University of Florida’s Tourism, Hospitality and Event Management department. Hotels can also use “concierge robots” to help customers make reservations, she said.

“Using AI wisely can significantly reduce labor costs without sacrificing the level of personalized services,” said Fu.

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