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Arms Race: What Travelers Can Expect in 2024 At the start of what promises to be a very busy year, we look ahead at what you’re likely to encounter. With 2023 in the rearview mirror, we look ahead at what travelers will face in 2024. At United Airlines, for example, smarter software can offer rebooking options and issue food and lodging vouchers when a flight is canceled, rather than just rebooking a flight. United Airlines has suspended its flights indefinitely, said Josh Freed, a United spokesman. This year, travelers are expected to choose faraway places and board small ships, according to Virtuoso, the consortium of luxury travel agencies.
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U.S. hotel operators who have been grappling over the past year with an uneven recovery in Chinese demand are now benefiting from pent-up-demand throughout Asia Pacific, particularly in Greater China. "While macroeconomic uncertainty persists, it has not weighed on travel demand to date. In fact, demand continued to rise across all customer segments in the quarter," Marriott CEO Anthony Capuano said on a call with investors. In the Greater China region RevPAR rebounded to 95% of pre-pandemic levels during the quarter while Mainland China RevPar fully recovered to 2019 levels. "First quarter hotel performance came in a bit better than expected and will likely be the high-water mark for the year," said CoStar Group National Director of Hospitality Analytics Jan Freitag.
While travel demand is roaring back, many hotels, airlines, cruise operators and airports are still racing to hire and train workers. That means the level of customer service will likely take a hit, industry experts say. One potential bright spot can be found at sea: During the summer, several cruise lines had to cancel voyages due to staffing shortages, but major disruptions have been largely resolved. “It’s highly unlikely your holiday cruise will be canceled due to lack of staffing,” said Colleen McDaniel, editor-in-chief of Cruise Critic, a Tripadvisor-run travel site. “This year, I moved my annual holiday travel to earlier in December,” said Abby Rhinehart, an educational researcher in Tucson, Arizona.
"The market in China is most certainly where we're seeing the most challenges," Chief Executive Anthony Capuano said during an analyst call. Revenue per available room (RevPAR) from Greater China was $64.06 in 2021 company-wide, behind U.S. & Canada and Middle East & Africa. "Looking forward we expect that the recession will mute, but not derail, growth in the U.S. hotel industry. Marriott now expects 2022 adjusted profit per share of between $6.51 and $6.58, compared with its previous forecast of $6.33 to $6.59 per share. Adjusted profit per share was $1.69, one cent above expectations.
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