Jetsetting Continues in 2023, Though Pace Slows

Key Takeaways:

• Across the travel sector demand is strong, but decelerating, amidst a toughening economy, driven by a shift in spending to experiences. This is evident in the performance of the sector’s mobile apps, particularly budget airline Spirit, which saw positive traction in 4Q22 and 1Q23, as value became a key criteria for travelers

  • US downloads of the airline cohort rose 17% YoY in 1Q23, maintaining the mid-high teens quarterly YoY growth rate in 3Q22 and 4Q22, according to Sensor Tower data; international mobile app trends have been robust after sinking in 2020. This is likely to continue as leisure travel remains elevated

  • Airline MAU growth remains strong internationally (up 100%+ YoY in 1Q23), but is decelerating in the US (up 21% YoY in 1Q23, but down from +48% in 1Q22). In line with broader macro trends, US MAU growth slowed sequentially in 4Q22, falling 2.5% QoQ, though there was a slight uptick in 1Q23, potentially due to spring break travel

• Booking.com and Expedia saw a low-single digit increase in Sensor Tower estimated mobile MAU in 1Q23 from the prior quarter, which was an uptick from 4Q22 trends. Historically, this metric has had a positive relationship with company reported growth in room nights.

• Both AirBnb and Expedia-owned VRBO had a high-single digit to low-double digit increase YoY in MAUs in 1Q23, though only Airbnb saw growth in downloads in the period on a YoY basis, up 27% (15% QoQ)

For more information, request the full report from reports@sensortower.com.