Impact of inflation on travel and tourism worldwide - statistics & facts
After being struck by lockdowns and emergency measures enacted during the coronavirus (COVID-19) pandemic, the industries commonly associated with the travel and tourism sector – transportation, hospitality, and recreation – had to face another major challenge: the dramatic increase in global inflation. The sharp rise in consumer prices has, directly and indirectly, also affected travel and tourism, causing a surge in travel-related costs and cutting back the purchasing power of tourists. While the monthly inflation rates worldwide declined gradually during 2023, after spiking in the previous year, a 2024 global poll indicated that inflation still ranked as one of the most important problems facing the world. When it comes to travel and tourism, it is worth understanding how high inflation is hitting each market individually, since the sector comprises a wide range of goods and services.
When looking at the accommodation market, even though the inflation rate of hotels and similar services in the EU has experienced a decreasing trend since June 2022, it remained significantly high compared to pre-pandemic figures, recording a 12-month growth of 6.8 percent in December 2023. That month, the consumer price index of catering services in the United Kingdom also reported a substantial year-over-year increment (7.3 percent), representing, together with package holidays, one of the highest inflation rates of travel and tourism services in the UK.
Impact of inflation on travel and tourism industries across the world
The travel price index (TPI) published by the U.S. Travel Association gives an overview of the monthly price changes across different travel and tourism industries in the United States. According to the December 2023 TPI, food and drink services were among the main drivers of inflation for the U.S. travel and tourism sector that month, with the price index rising by 5.2 percent over the previous year. Meanwhile, the inflation rate of restaurants and cafés in European Union member countries grew by 5.9 percent in December 2023 compared to 2022.When looking at the accommodation market, even though the inflation rate of hotels and similar services in the EU has experienced a decreasing trend since June 2022, it remained significantly high compared to pre-pandemic figures, recording a 12-month growth of 6.8 percent in December 2023. That month, the consumer price index of catering services in the United Kingdom also reported a substantial year-over-year increment (7.3 percent), representing, together with package holidays, one of the highest inflation rates of travel and tourism services in the UK.
