- ECONOMIC IMPACT -

Latest update: 29 June

The global economy is projected to grow at record speed in 2021, but the outlook is uncertain and will depend on the effectiveness and distribution of the vaccines and on continued fiscal support.

Countries like the US and UK that show early success in vaccine distribution have seen strong upward revision in GDP growth. Recovery will be uneven across countries, sectors and income levels.

6.1%

Consensus global real GDP growth forecast for 2021, revised upward from the previous estimate of 4.9%

8.9%

China is expected to lead the economic recovery with a real GDP growth forecast of 8.9% in 2021

GLOBAL ECONOMY TO REVIVE IN 2021

- SECTOR IMPACT: TRAVEL AND TOURISM -

Latest update: 7 July

IMPACT ON AIRLINES

$47.7bn

In April, the International Air Transportation Association declared that it expects net airline industry losses of $47.7bn in 2021 with a net profit margin of -10.4%.


Losses have decreased since 2020 and the onset of the Covid-19 pandemic, but the government-imposed travel restrictions still in place in June 2021 across destinations worldwide will continue to dampen international travel recovery. Airlines are therefore planning for an extended recovery period.

IMPACT ON INTERMEDIARIES

Many intermediaries are now focusing on experiences as a primary focus with partnerships becoming more common. Recent partnerships include Trivago's (Expedia Group) partnership with Musement, TUI's experiential subsidiary and Booking.com's attraction partnership with Viator (Tripadvisor). As travel remains restricted, intermediaries are exploring tours and activities as another revenue stream.

Travel enters a new era

Low tourist demand means many cars rental companies have been forced to sell their fleets in order to stay afloat during the Covid-19 pandemic.


Markets in which airport pickup is the largest channel, such as the US, have particularly suffered, but the effect has been felt all over the world.


But as demand picks up, with more people traveling and supply still down, major price hikes are likely to be in store for anyone who wants to rent a car.

Key Travel And Tourism  developments

The development of 'vaccination passports' continues as a measure to revive the travel and tourism sector. Vaccination passport apps will store Covid-19 vaccination data alongside test results and other relevant information to facilitate document checks for travellers. 


The EU Digital COVID Certificate has been approved and is expected to roll out on 1 July 2021. Covid-19 related information will be gathered in the form of a QR code, which will then be accepted across the EU depending on entry requirements. 


Domestic tourism remains an area of intense focus. Lockdown measures have created a desire for people to travel, but ongoing travel restrictions and the slow rollout of vaccination programmes in several markets mean options are limited, creating increased demand for domestic travel.


Even though some borders are reopening, tourism boards continue to shift their focus towards attracting people from their domestic market.

Share this article