Travel demand is almost always a good predictor of what’s to come for the overall economy. It’s like the canary in the coal mine. When consumers and big companies start to feel nervous about future prospects, travel is usually one of the first things to get cut (or reduced) from the family or corporate budget.
So while employment and overall economic numbers still look like it’s full steam ahead for the U.S. economy, the travel industry may be starting to feel a light recessionary chill. Some examples:
There are growing concerns about financial default and employment according to Squaremouth, a big travel insurance comparison site. The company says that interest in travel insurance that covers cancellations for work reasons or employee layoffs is way up– +25 percent and +42 percent respectively. Consumers are also buying more insurance to cover airline bankruptcies, such as the recent shutdown by WOW Air.