Travel Gains Despite Recession Concerns: Skift Travel Health Index

Skift Take

The global travel industry continues to thrive, with Asia Pacific and North America leading the charge.

Saniya Zanpure

Despite looming recession fears, the travel industry continues to demonstrate strong growth, according to the Skift Travel Health Index for August 2024. The index showed a 9% increase from a year ago, led by the Asia Pacific region (up 13%) and North America (up 8%).

The travel surge in the Asia Pacific region is largely due to the region’s delayed reopening after the pandemic. Some countries are still navigating recovery, while others have settled into moderate growth patterns.

Booming domestic demand is driving growth in Thailand and China. While Hong Kong has grown above 2023 levels, the country has faced challenges with its luxury sector and has instead moved its focus to mid-range and budget-conscious travelers. Travel in Japan is thriving due to the pent-up demand over the past few years. Overall, all countries in the region performed well in the August index.

In the U.S., passenger volumes are at an all-time high. As measured by the Transportation Security Administration, passenger volumes have been increasing, with an average year-on-year growth rate of around 6% each month.

Read the August 2024 Highlights for further insights from the index.

While we see growth in travel volumes, concerns about a potential recession may impact travel spending. At the recent Skift Global Forum, Anthony Capuano, CEO of Marriott International, shared that high-income travelers, who have been driving travel spending, have begun slightly reducing spending on ancillary services, such as spas or food and beverage.

Despite this, we believe that travel is likely to remain resilient due to its increased importance in people’s lives. While travel spending may still be discretionary, it has gained priority since the pandemic. As noted in a recent Skift article, while travel may not be entirely “recession-proof,” it is likely to be “recession-resilient.”

Read our latest August 2024 Highlights and the Travel Health Index dashboard for further insights.