As Covid-19 swept across the globe in 2020, many were left wondering how long it would take for the travel and tourism industry to bounce back to the demand levels seen in pre-Covid times. Already in 2022, the international tourism industry as a whole generated USD1 trillion, growing 50% compared to 2021,  and strides towards full recovery have certainly been evident from results from TUI and Hostelworld(HSW) this week. 

TUI swung back to profitability in Q3, the first time since the pandemic began. Its underlying EBIT reached €169m, up from the previous years loss of -€27m. Revenues were up 19% year-on-year to €5.3bn euros, up from the prior year’s €4.4bn. All segments showed a positive operating performance and contributed to the improvement in earnings.

Fresh data from Heathrow further demonstrates that the travel industry is very nearly back on its feet, reporting that 7.6 million people traveled through Heathrow in July, averaging nearly a quarter of a million passengers a day. Poor UK weather in July meant travellers sought better weather overseas in droves - a record 73,000 passengers flew to Turkey in July, the busiest month ever for the destination. Staff shortages are also now a thing of the past, with the airport adding that security queues were consistently under five minutes. 

More good news came from Hostelworld, a global online travel agent focused on the hostel market, which said it has seen growth in net bookings in H1 2023, (3.4m, +64% year on year) and net revenue (€45.8m, +64% year on year), as customers booked hostelling trips around the world again. 

Global hostelling's bednight stays increased by double digits in H1, with even stronger growth from Hostelworld after cross-border travel resumed post-Omicron. Long-haul bookings spiked by 70% YoY, and ‘follow on’ bookings post-initial flights grew by 95%.

Hostels in particular are showing good signs of recovery this year, partly due to pressure on travel budgets as a result of the cost of living crisis, with the global hostels market size predicted to grow from $6.04 billion in 2022 to $6.35 billion in 2023 at a CAGR of 5.2%. Furthermore, the market size is expected to grow from $7.65 billion in 2027 at a CAGR of 4.8%. 

As the industry enjoys a marked resurgence in demand, make sure to follow Hostelworld for more News and Updates: