No major player in the travel industry has escaped the impact of the travel restrictions resultant from the on-going global pandemic. However the impact has varied; players exposed to business and luxury travel have been impacted the most, whilst players with a higher exposure to domestic travel have been less affected. Meanwhile, the presence of global travel brands is increasingly being split with those reliant on China, such as Ctrip and the rest of the world, like Expedia.
No major player in the travel industry could escape the impact of the travel restrictions resulting from the global pandemic of 2020 and 2021. However, the impact has varied across the global travel industry with airlines impacted the most due to international travel restrictions and lodging the least, cushioned by increased domestic travel.
China is increasingly developing its own dynamic in global travel, for example C-trip is the global leader in OTAs, but its sales are sourced almost entirely from the Chinese market.
Due to China’s relatively more rapid recovery from the pandemic, players with higher exposure to the Chinese market are forecast to be among the best performers
Global players based in the US and Europe are largely reliant on sales from mature markets, this is particularly the case in airlines and intermediaries, however lodging players have relatively higher exposure to emerging markets, with for example Accor having a 40% share of emerging market sales. Again China stands out, with its players mainly exposed to emerging markets.
Lodging is the most fragmented travel category, where in most regions 20% or less of sales are through the 10 leading global players. The US market is a notable exception where almost 60% of sales are through the leading players. Meanwhile, airlines and intermediaries are far less fragmented, with most sales through the leading global players.
Lodging players have the lowest reliance on a their leading brands relative to airlines and intermediaries, which tend to rely mainly on a brand such as American Airlines or Booking.com. Global lodging players such as Marriott and Accor are increasingly developing hotel brands targeting distinct lifestyle segments, a trend not seem in other travel industry categories.
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