About 5% due to falling demand
RR | New York | December 19, 2022
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RELATED TOPICS: Powered, Jet Blue, New York, Scott Kirby, United, Wall Street
At the end of the year, the US hotel industry is looking to the future with concern as consumer prices for hotels, motels and other lodging establishments fell nearly 5% according to the government’s latest inflation report, a sign that the travel demand has declined since the summer .
But the concern grows even more because in recent months airfares have also fallen by 0.6%. According to Diariony, the price drop comes in a year when the travel industry has seen an increase in sales after a difficult couple of years due to the COVID pandemic.
According to CNBC, JetBlue said on Tuesday that last-minute strong demand forecast for December in its previous financial outlook materialized below expectations.
as revealed REPORTUR.itthe projection for the economy in the US is not so good, and companies like United have sounded the alarm by saying they have already seen stagnant demand, which could indicate “pre-recession behaviour” for 2023.
United chief executive Scott Kirby explained to CNBC that he believes there could be a “mild Fed-induced recession,” although they still have an optimistic projected result for this year.
The US economic outlook is turning bleak, as Wall Street pundits have described it, awaiting the actions the Federal Reserve will take later this year (United sound the alarms: they already detect stagnant ‘pre-recession’ demand)
