RateGain's PULSE report shows no impact of global inflation on travel demand in May

16 Jun 2022 , 03:21 PM

RateGain Travel Technologies, a worldwide SaaS supplier for travel and hospitality, presented insights in its newest PULSE report by evaluating demand from over 1,91,000 hotels and tracking future travel demand from over 60+ locations.

According to the survey, worldwide travel demand remains strong despite towering inflation and an expected global slowdown owing to Chinese lockdowns and the ongoing crisis in Europe.

The finding of this month’s report is in line with the recent data from the United States Commerce Department according to which Inflation-adjusted spending on goods fell 0.5 percent while services rose 0.6 percent, stated company in media reports.

The increase in services expenditure was led by components such as foreign travel, restaurants, and hotels when not adjusted for inflation.

India’s monthly reservations increased, with tourist sites in the north and south receiving higher bookings as families intend to travel over the annual summer holiday for the first time in two years.

While hill stations were already witnessing a spike of 100-150% in April as per the last report, the same destinations are now witnessing a growth of 50-60%, said media reports.

The capital city of Delhi’s reservation growth continues to be in double-digit, and a 65% gain in ADR as compared to the previous month, despite a record-breaking heat wave in the region.

Despite expensive airfares and a coming recession, we observed a 38 percent increase in reservations across the top 20 destinations in May, driven by a large jump in bookings in Turkey, Jordan, and Malaysia, followed by other Asian countries such as Oman, Singapore, and Indonesia.

The report further outlined that even with a 60-70 percent increase in prices expected over the next three months, South East Asian cities Bali and Kuala Lumpur are witnessing the highest spike in reservations, followed by Koh Samui and Pattaya, as international travellers’ land in the Asia Pacific for the first time in two years.

At around 3.26 PM, Rategain Travel was trading at Rs266.70 down by Rs8 or 2.91% from its previous closing of Rs274.70 on the BSE. The scrip touched intraday high and low of Rs279.95 and Rs264 respectively.