Despite the Covid-19 pandemics, the travel industry has positive forecasts for the upcoming year. In 2022, it is going to generate a two trillion revenue in the US economy. Tourism will keep blossoming out, and this is why a travel app is a good idea for a startup or existing business.
In this work, we will give you a brief overview of the costs and probable profits of a travel app and give you some reasons why it might become a reasonable investment.
Prices for went up travel and tourism are two times more expensive now
The US Travel Association faced a 9,5% increase in the travel index. The pandemic era impacted all travel-related services and products. For instance, flights cost 30% higher, and accommodation rates also keep growing. For instance, an average three-star hotel in New York offering approximately a $185 per night per room will now charge about $200 for the same set of services. The same is with the car rental and private guides.
This fact implies an essential point: the travel industry is slowly shifting to the luxury segment, and travel business owners can generate significant revenues, especially if they perform as travel agents, not tour operators. The margin of the travel service can reach 40%, and a travel app can boost sales and help promote your product in the premium sector.
Reclaim your travel: the emerging trend for the next year
Since 2021, the #reclaimyourtravel hashtag has become a large trend on social networks, and the industry saw a huge rebound in the demand for travel. This high demand will result in a huge boost of tourism next year: the travel restrictions are getting milder, and people, tired of being locked down, are willing to invest in domestic and outbound tourism.
According to statistics, the second most-desired activity (after dining out) is traveling, and it concerns people of most age groups. It will be another factor for the renaissance of tourism and its peak in 2022.
In addition to the development of the application for tourism, we need to assess the growth of the travel industry.
A Travel App can offer a wider range of services
Travel is not only about hotels and airlines. With a travel app, your company can generate revenues from various areas of tourism: from accommodation and resorts to car rental services or social networks for tourists. Besides, a travel app may involve logistics, travel planning, ticket ordering, Covid-19 restrictions updates, and more features to engage a large customer pool.
The number of opportunities is immense, so you have plenty of options on how to expand your services without being niched down to some minor area. Staying agile in the ever-changing industry is essential, so if your app involves a certain selection of popular services, your product will always stay in demand.
It seems tourism is experiencing a rebirth, so it’s high time you found your place in the industry. With many travel companies emerging in the US and world market, the market will be saturated soon, so don’t miss your chance.