Booking Holdings Inc. has reported that inflation continues to dampen travel demand in the United States, with price-conscious consumers delaying their vacation plans. The company’s Chief Financial Officer, Ewout Steenbergen, noted in an interview with Bloomberg News that the trend of delayed bookings is still evident, with Americans taking longer to commit to trips.
“We haven’t seen much movement in the U.S. around booking windows recently,” Steenbergen explained. The “booking window” refers to how far in advance consumers book their vacations. A shorter booking window indicates that travelers are holding off longer before finalizing plans.
In contrast, European travelers are booking earlier, with plans for ski trips in February and Easter holidays already underway. This early demand from Europe has contributed positively to Booking’s outlook, Steenbergen shared with investors last week.
These remarks highlight a moderating growth trend in the travel industry following the initial post-pandemic surge. As the largest online travel company by market value, Booking Holdings’ performance often reflects broader industry trends. While the company’s most recent earnings report showed that the slowdown was not as severe as some investors had feared, demand in the U.S. remained weaker compared to other regions, Steenbergen noted.
A “bifurcation” in the U.S. market is also contributing to the slowdown. While luxury travel continues to see strong demand, lower-income groups are more affected by inflation. As a result, some U.S. travelers are opting for lower-rated hotels or shorter vacations.
Despite the current challenges, Steenbergen remains optimistic about the U.S. market. He believes that consumer behavior will eventually return to normal, especially as the impact of inflation works its way through the economy. “We would expect at some point that to start to normalize and get stronger, particularly once inflation’s effects have worked through the economy,” he said.
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