When will the travel market fully recover?

In this video clip of “Real Talk” on Motley Fool live, recorded on February 25Calvin Schnure, senior vice president of research and economic analysis for the National Association of Real Estate Investment Trusts, shares his views on the travel industry, which segments are recovering faster, and how long he thinks it will take to come back full force.

Calvin Schnure: Travel and everything associated with it is another one of those sectors that is really lagging during the pandemic, and it’s important to separate it into personal leisure travel and business travel. Because they both closed very early in the pandemic. We couldn’t travel, we couldn’t go anywhere. But one of the first things that came out was people said, ‘I haven’t seen any family, I haven’t seen any friends, I haven’t seen any grandchildren. children”, it’s the one that everyone mentioned as being grandchildren. I happen to think anyone you want to visit is worth visiting.

We have seen a good recovery and good operational performance in the hospitality sector, but there is still a long way to go. But what is really interesting is to look at the days of the week. Typically, Saturday night occupancy is not that different from Wednesday night occupancy, but there are different groups of people. Saturday night office rates came back pretty well. A lot of it is pleasure travel, personal travel, and these are things that have come back quickly because visiting grandkids by Zoom it’s just not the same thing. Wednesday meetings, Wednesday nights, mid-week, a lot of it is business travel and it really hasn’t recovered that much. We haven’t seen as many business conventions, trade shows, conferences come back, but I’m seeing more and more of them online. I attended a number of them. I have spoken at several in-person conferences over the past five months. I think other people see this too. There’s a lot more ground to be reclaimed in business travel. Impact on the hotel sector. What is the deadline for this? It’s hard to say. I suspect it will come back comparable to what I mentioned for the desktop. In the second half of this year, I think you’ll see more conferences, more business travel, you’re going to see more people hitting the road. Likely a stronger recovery in 2023, it is a bit early to have a full and robust recovery in the travel market.