Battered travel industry will take years to recover even after coronavirus vaccines are rolled out, says Booking.com

The recovery will depend on consumers’ willingness to spend money on leisure amid a downturn that has triggered salary cuts and redundancies

Those willing to travel these days are tending to opt for domestic journeys, local beaches and nature trips by car, says regional managing director

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There are several potential vaccine candidates that are undergoing clinical trials. Photo: AFP

Published: 4:30pm, 11 Sep 2020Updated: 8:42pm, 25 Nov 2020

A Covid-19 vaccine is unlikely to be a quick fix for the ailing travel industry, which will still take years to recover to pre-pandemic levels, according to Booking.com.

“We believe that a vaccine and/or proven treatment is critical for people to feel safe to travel again, and even then, it will be years – not quarters – before travel returns to 2019 pre-pandemic levels,” said Angel Llull Mancas, vice president and managing director, Asia-Pacific, at the online travel service provider.

If and when a successful vaccine programme is rolled out globally, the travel industry’s recovery will also be dependent on the world economy and consumers’ willingness to spend money on leisure amid a downturn that has decimated corporate revenues and triggered salary cuts and even redundancies for many workers.

To date there are several potential vaccine candidates that are undergoing clinical trials, but the World Health Organisation said widespread vaccination against the coronavirus is only likely to be achieved in mid 2021.

Travel is one of the industries hardest hit by the pandemic, as international borders have closed to stem the spread of the disease. In the first half of the year, hotels in Asia-Pacific were estimated to have lost at least US$50 billion in revenues as 80 per cent of them had to cease operations temporarily at the height of the pandemic.

The global aviation industry, excluding airlines, is likely to lose US$2 trillion this year, according to an assessment by Zhang Lei, founder and president of the Institute for Aviation Research, an independent think tank.

“The pandemic has had an immense impact on many industries across the region, including travel, due to travel restrictions all over the world and the sheer unpredictability of the virus,” said Llull Mancas. “The travel industry continues to be under significant pressure as the world continues to grapple with ongoing outbreaks, limitation of cross-border movement and health concerns which deter many from confidently exploring beyond their homes.”

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