Seema Shah · February 2024
International Travel Demand Buoyed 2023 OTA and Airline Performance
Easing inflation and a continued shift in spending from retail goods to experiences prompted material demand for travel in 2023. Major airlines like Delta, United, and Alaska saw growth given their exposure to international routes, while budget carriers with limited international routes struggled. There was also a shift in consumer tastes from rental homes to hotel accommodations, showing a change in how people plan their trips.
Key Takeaways:
Reduced U.S. inflation in 2023, at 3.4% YoY in December (down from 6.4% in 2022) likely propelled travel demand throughout the year. 2023 downloads for Sensor Tower’s airlines cohort (+4% YoY) increased inline with the TSA’s reported number of passengers flowing through checkpoints (+13% YoY)
After a 15-month shutdown during the pandemic, the cruise industry rebounded with a remarkable 304% YoY increase in downloads for Sensor Tower’s cruise apps cohort in 2022 and saw sustained growth of ~40% YoY in 2023
Budget airlines encountered challenges in 4Q23, experiencing negative YoY growth in MAUs. Spirit and JetBlue, in particular, saw double-digit declines of 16% and 14% YoY, respectively. These declines are likely indicative of a shift in US travelers' preferences towards international travel
In 2023, a notable shift in consumer preferences for travel accommodations occurred as vacation rental platforms Vrbo and Airbnb saw MAUs decline an average 9% and 3% YoY, respectively, while hotel apps such as Hilton Honors, Marriott Bonvoy, IHG Hotels, and Hotels.com saw MAUs increase by a collective average of 20%
For more information, request the full report from reports@sensortower.com.
