LOGINEarlier this week we shared our global Sector Tracker that analyzes recovery trends by highlighting the sector with most week-over-week growth in each country. Last week, in the US, it was the transportation sector the had seen the biggest uptick in activity, based on our analysis of foot traffic at key locations. Since a significant share of traffic measured in this sector comes from airports, this is an indicator of an important trend for the travel industry.
The approaching summer holiday period in the northern hemisphere is a critical time for the travel and hospitality sectors. With travel restrictions still in place, however, there remains a lot of uncertainty about what this summer will bring for companies that rely on tourism during this peak travel season.
As an indicator for likely travel trends, we reviewed foot traffic data for airports in the US. As the chart below shows, airport foot traffic remains depressed compared to historical trends.
Recent signs, however, indicate a small but noticeable uptick over the past month, with foot traffic at US airports showing signs of recovery - reflecting both domestic and international flights carrying more travellers.
Our early analysis also suggests that this is a global trend, with similar growth at international airports. Over the next 2 weeks many European countries will open their borders to select other countries. We will be watching closely to see whether the momentum continues, offering some relief to the global tourism industry.
