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1. Mexico's Tourist Destinations Grapple With Demand Boom
About 10 years ago, some of what are now considered Mexico's top tourist destinations were once "sleepy" towns." Now, they are "part of the international party circuit — marketed as a jungle paradise," Bloomberg reports.
Both Tulum and Cancún are in the midst of a tourist boom, up 6% against 2019 levels. Airlines have also scheduled 20% more seats on flights from the U.S. this year compared to pre-pandemic. This increase has been a "mixed blessing," the news outlet reports.
"Mexico’s biggest beach destinations circled in and out of the news as they suffered from coronavirus spikes presumably brought on by tourists," Bloomberg reports.
HNN's Stephanie Ricca reported last month while at the 2022 MexHIC conference that leisure travel is thriving in Mexico, driven largely by the high volume of all-inclusive resorts across the country.
2. US Consumer Prices Rise 8.3% in April
Inflation in the U.S. accelerated past forecasts of 8.1%, hitting 8.3% in April compared to a year ago, which is "near the highest level in more than 40 years," CNBC reports. Removing food and energy prices, core CPI still increased 6.2%, compared to expectations of 6%.
"The price gains also meant that workers continued to lose ground. Real wages adjusted for inflation decreased 0.1% on the month despite a nominal increase of 0.3% in average hourly earnings. Over the past year, real earnings have dropped 2.6% even though average hourly earnings are up 5.5%," the news outlet reports.
3. Hotel Investors Driven by Environmental, Social Issues
Investors placing money in European hotel and hospitality projects now are more committed to environmental, social and governance compliance even though there's a lack of universal standards of measurement, reports HNN's Stephanie Ricca from the recent International Hospitality Investment Forum in Berlin.
One of the major drivers is the European Commission's European Green Deal, approved in 2020 as a set of policies pushing the European Union to be climate-neutral by 2025.
“The transition is mandatory. No one can avoid it, and happily, the hotel industry is getting together on alignment,” said Miguel Casas, managing director of Stoneweg Hospitality, a Geneva-based real estate investor. “This is a huge opportunity, and it’s integrated into our investment strategy. Future generations will want hotels that follow [these practices] and from a cost perspective, everyone is fully aligned.”
4. Study Shows Ongoing War in Ukraine Won't Stop Travel to Europe
A recent study by MMGY Travel Intelligence shows 61% of American tourists who made plans to travel to Europe this year still intend to go despite the ongoing war in Ukraine, according to a news release. MMGY Global's research and insights brand surveyed more than 400 leisure travelers.
A total of 23% of those with plans note they intend to wait and monitor how the war transpires before they commit to their plans.
“While the war in Ukraine is clearly a top-of-mind concern for many travelers, it does not appear that it will ultimately deter a majority of Americans from visiting Europe,” Chris Davidson, executive vice president of MMGY Travel Intelligence, said in the news release. “This is especially true of travel to Western European destinations that are perceived to be a bit more geographically removed from the conflict."
5. Overall Airline Passenger Satisfaction Drops Significantly
As crowds return to the airport, a recent study by J.D. Power shows that overall passenger satisfaction across first/business class, premium and economy/basic economy has declined sharply, according to a news release.
Based on a 1,000-point scale, satisfaction notched at 798, down more than 20 points year over year. The study notes "passenger satisfaction with cost, flight crews and aircraft all decline in this year's study."
“Customer satisfaction with North American airlines climbed to unprecedented highs for all of the wrong reasons during the past two years,” said Michael Taylor, travel intelligence lead at J.D. Power, said in the release. “Fewer passengers meant more space on airplanes, less waiting in line and more attention from flight attendants. But that business model was simply not sustainable."