The travel industry continues to climb out of the recession as revenues for both airlines and hotels increase, as do rates and fares.
According to the Air Transport Association of America, passenger revenues jumped 14.5 percent in November compared to the same month in 2009. It was the 11th straight month of revenue growth for the airline industry. Also, miles flown jumped 6.5 percent for the month.
Overall, 2010 is shaping up to have been the best year for the airline industry since at least 1999, according to an article on CNNMoney.com. Airfares are up 13 percent since the second quarter of 2009, according to the latest data from the U.S. Bureau of Transportation Statistics.
Airfares are expected to jump 2 percent to 6 percent in 2011 in North America—and slightly higher for international flights—state experts at American Express Business Travel.
The hotel industry finished 2010 better than anticipated and is positioned for continued growth in 2011, according to projections from Smith Travel Research published in December.
Two of the three major metrics used to determine industry performance were expected to end the year on a positive note, with occupancy jumping 5.3 percent to 57 percent and revenue per available room climbing 5.2 percent to $56.23. Average daily rate was projected to be virtually flat at $97.92. Further, supply will have increased about 2 percent for 2010, while demand is projected to finish the year up 7.4 percent.
All three metrics are projected to increase in 2011.