5 years after COVID: How the travel industry took a beating from pandemic, then climbed its way back

In early March 2020, the Grand Princess cruise ship found itself stranded off the coast of California with the fate of its more than 3,500 passengers and crew unclear.

The ship was forbidden from pulling into port after U.S. officials learned that a California man who had traveled on the Grand Princess the previous month had contracted the “new coronavirus” and died. An additional 20 individuals on the ship had also tested positive for the deadly, emerging virus.

Rather than being allowed to dock, the California Air National Guard dropped a limited supply of COVID-19 testing kits to the Grand Princess by helicopter while the cruise ship circled around in international waters awaiting further instructions.

That same week, Florida reported two coronavirus deaths – an ominous sign as these were the first COVID-19 deaths to occur in the United States beyond the virus’ initial outbreak on the West Coast. The two deaths brought the U.S. death toll to 17 and another 333 cases had already been confirmed.

And so it began.

Five years ago this month, daily life, as most of us knew it, came to a halt as the world realized it was in the grips of a deadly global pandemic unlike anything previously seen in modern times.

By March 11, 2020, more than 118,000 cases of COVID-19 had been reported across 114 countries, and there were 4,291 resulting deaths, according to a CDC timeline of the pandemic’s emergence. On that day, the World Health Organization (WHO) officially declared COVID-19 a pandemic.

Two days later, on March 13, the Trump administration announced a nationwide emergency banning entry of non-U.S. citizens from 26 countries. This was followed 24 hours later by a “no sail order” from the CDC for all cruise ships, calling for them to cease all activity in all waters over which the U.S. held jurisdiction.

Travel, an industry worth $10.3 trillion globally in 2019, accounting for 10.5% of all jobs around the planet and 7% of all trade, was about to experience the unthinkable: being brought to a standstill. It would take years to recover.

March 2020: The month everything changed

It can be hard to believe that the deadly COVID-19 pandemic is already five years behind us. The years have flown by, in some ways, and life has largely returned to normal. The journey to get to this point, however, was no small feat. It has been daunting, both individually and collectively.

That March, routines of daily life changed seemingly overnight. Millions of workers lost jobs as businesses ceased operations. Many of those who remained employed were required to work remotely and found themselves suddenly adjusting to digitalization. Schools shifted to remote learning, and health care workers became the front-line defense, helping us all fight a global existential threat. And these are just some of the impacts.

Turning to the tourism industry, one of the central policies implemented to help contain the virus was restrictions on mobility, both domestically and internationally. This had a profound impact on every level of travel, including slashing demand for hotels and eliminating patronization of restaurants, as well as countless other hospitality venues.

Air travel was one of the hardest-hit global industries: “After a decade of consistent and robust growth in global passenger traffic, the ongoing COVID-19 pandemic brought airports around the world to a virtual halt in the second quarter of 2020, erasing almost overnight, more than 20 years of passenger traffic growth,” says a report from Airports Council International.

In 2020, there was a 62.3% decline in global passenger traffic, which amounted to about 5.9 billion passengers not flying due to the pandemic, according to ACI.

Additional statistics further illustrate the bleak reality the travel industry faced five years ago:

• Lockdowns worldwide resulted in a staggering 49% GDP decline for the travel industry in 2020 (compared to an overall global economy GDP contraction of just 3.7% during the same time frame.) This amounted to a loss of close to $4.5 trillion compared with 2019, according to the World Travel & Tourism Council.
• The United States alone recorded a tourism revenue loss of roughly $147 billion between just January and October 2020, according to Statista. By comparison, Spain, the country experiencing the second-highest drop in tourism revenue, lost about $46.7 billion over that same time frame.
• Some 63 million tourism jobs were lost in just 2020 as a result of the pandemic, according to Statista.

Other developments during this time however, were positive. The COVID-19 pandemic lockdown, for instance, caused the quality of air in many cities around the world to increase, while water pollution decreased, according to the National Institutes of Health.

Globally, fossil CO2 emissions declined by an estimated 2.4 billion tonnes in 2020, a record drop, Stanford University reported.

Amid these sorts of changes, nature and wildlife rebounded and thrived in many places, in ways it hadn’t in decades.

“COVID-19 became the opportunity for the earth to build a clear blue sky and clean the air. During the period of lockdown across the world, the sight of the blue sky created a sense of optimism among the people towards a clean and better environment,” reported the NIH.

These developments made individuals the world over, including within the travel industry, incredibly aware of the impact the human race was having on the planet.

The road to recovery

In May 2023, the WHO and former U.S. President Joe Biden declared an end to the pandemic.

Exactly one year later, in May 2024, a report from the World Economic Forum touted: “Tourism is back to pre-pandemic levels.” The report explained that the global tourism industry in 2024 was not only expected to recover from the lows of the COVID-19 pandemic, but might even surpass the levels seen before the crisis.

A record $1 out of every $10 spent globally in 2024 was expected to be spent on travel as consumers rushed to book hotels, cruises and flights, WTTC reported.

The WTTC also estimated that the industry’s contribution to global GDP in 2024 would increase 12.1% year-over-year to reach $11.1 trillion, thus making up 10% of global GDP. That figure represented a 7.5% increase from the previous record set by the travel industry in 2019, before the pandemic emerged.

Travel industry employment has recovered as well. The sector was expected to support nearly 348 million jobs in 2024, which was also a record-breaking 13.6 million more jobs than 2019 industry employment highs.

Yes, the travel industry appears to be back.

What the industry pros say

To mark this important five-year anniversary, TravelPulse reached out to industry leaders for their reflections and insights surrounding the journey forward from March 2020 and the turning point the industry has reached.

The range of commentary covers not only COVID-19’s lasting impact on the travel industry but also touches upon whether the industry has fully recovered, what lessons were learned and what lessons we may have already forgotten.

How the travel industry has changed

Sasha Andrews, Director, Industry Sales, North America, Exodus Adventure Travels:

“The travel industry has transformed over the past five years, with a shift toward more mindful and meaningful experiences,” says Andrews. “Travelers are increasingly aware of their impact, prioritizing responsible tourism, sustainability, and local communities.”

“At the same time, adventure and active travel have surged in popularity, with more travelers looking for immersive, physically engaging ways to explore the world,” continues Andrews. “Many now seek unique, off-the-beaten-track adventures, with hiking and cycling growing in popularity as ways to connect with nature and explore more sustainably. …This shift has pushed travel companies to adapt, offering trips that align with these evolving preferences while staying committed to responsible and authentic travel.”

Maija de Rijk-Uys, Managing Director, Go2Africa:

“The pandemic forced a major reset in the travel industry, shifting traveler priorities and the way businesses operate,” says de Rijk-Uys. “We’ve seen a definitive move towards more intentional and personalized travel experiences. Guests are traveling with greater purpose – whether it’s seeking deeper cultural connections, prioritising sustainability, or investing in once-in-a-lifetime journeys.”

“There has also been a rise in slow travel, with people spending longer in destinations to truly experience a place rather than rushing through a packed itinerary,” adds de Rijk-Uys.

Michael Schottey, Vice President, Membership, Marketing & Communications, American Society of Travel Advisers:

“There are plenty of minor ways the pandemic itself changed travel, but it’s been the massive return to travel post-pandemic that has had a far greater impact,” said Schottey. “Advisers a decade ago would never have believed the amount of business they would be doing just a few short years after everything came to a screeching halt.”

“It’s not surprising that people wanted to travel after being cooped up for months on end, but the fact that the pace of bookings has continued to be so strong has transformed almost every corner of the industry,” Schottey added.

Julian Kheel, Founder, Points Path:

“The biggest change to travel since the pandemic has been the massive increase in passenger demand for premium services,” says Kheel. “Over the last few years, travelers have been eager to get their hands on a better travel experience, and they’re more than willing to pay extra for it. This includes features ranging from airport lounge access to priority boarding and even better seats in the sky.”

“The major question the industry now faces is whether this change in traveler behavior is permanent, or if it will eventually subside,” added Kheel. “But most travel companies are proceeding on the assumption that increased demand for premium experiences will continue in the long term, and are committing resources to improve their products to meet that demand.”

Heidi Durflinger, CEO, EF World Journeys:

“The way travelers are booking and wanting to experience travel is changing,” says Durflinger. “Coming out of the pandemic, the US Surgeon General declared a Loneliness Epidemic. Guided group travel has been an anecdote to this and as a result is experiencing record growth.”

“What we are seeing is that travelers are looking for meaningful connection and a sense of community, more than ever,” adds Durflinger.

Ginger Taggart, Vice President, Global Marketing and Brand Management, IHG Hotels & Resorts:

“The past five years have brought a significant change in how people approach travel, largely driven by the rise of remote and hybrid work,” says Taggart. “One of the most profound shifts we’ve seen is the rise of blended travel — where work and leisure seamlessly coexist. Today, 66% of travelers in the U.S. and U.K. are combining business and personal travel, up from 53% in 2022.”

Jacqueline Dobson, President, Leisure Division, Internova Travel Group:

“The pandemic fundamentally changed the consumer’s overall approach to vacations,” says Dobson. “In the wake of the pandemic, we saw a clear move to prioritizing vacations and time spent with loved ones over material purchases or other non-essential discretionary spend. That pattern has not slowed down – if anything, it continues to accelerate with demand for travel at an all time high.”

TJ Abrams, Vice President, Global Wellbeing, Hyatt:

“The pandemic has led to significant, lasting changes in the travel industry, reshaping the way we travel,” says Abrams. “During that time, the world was forced to slow down and in that pause, many discovered the value of prioritizing their health and wellness, setting the stage for a deeper commitment to holistic well-being.”

“As travel resumed, a clear rise in demand for experiences that support mental, emotional, and physical health emerged—from healthier food and drink options to fitness amenities and sleep tourism,” adds Abrams. “This shift signals a broader change in how well-being is perceived and integrated into travel experiences.”

Lessons learned, lessons forgotten

Kevin Jackson, Founder, EXP Journeys:

“The lessons that the pandemic showed the travel industry about environmental stewardship have become more ingrained in how travel companies operate, and I believe there is a stronger focus on connecting travelers to local communities and offering opportunities,” says Jackson. “At EXP, we have noticed an emphasis on wildlife conservation and travelers’ interest in being a part of these conservation efforts while on their trip.”

Sasha Andrews, Director, Industry Sales, North America, Exodus Adventure Travels:

“While the pandemic highlighted the need for more responsible travel—reducing environmental impact, addressing overtourism, and embracing sustainability—some of those lessons may already be fading. However, travel advisors have a key role in keeping these priorities front and center,” says Andrews. “Advisors can guide clients toward more sustainable choices, such as traveling in the off-season, exploring lesser-known destinations, and choosing suppliers committed to responsible tourism.”

Maija de Rijk-Uys, Managing Director, Go2Africa:

“The challenge for the industry now is maintaining momentum – sustainability must remain a core principle, not a marketing buzzword,” says de Rijk-Uys.

Jessica Blotter, Co-Founder, Kind Traveler:

“While progress has been made, it’s clear that parts of the travel industry have reverted to pre-pandemic habits,” says Blotter. “Overtourism has returned to many destinations, and the urgency to protect the environment can sometimes feel overshadowed by the rush to rebound. However, there’s a growing recognition among conscious travelers and industry leaders that meaningful change is non-negotiable if we want to preserve the very places that inspire us to travel.”

Jesse Neugarten, CEO, Dollar Flight Club:

“I’m concerned that we’re starting to forget some of the hard-won lessons from the pandemic, especially around sustainability and overtourism,” says Neugarten. “The pause in travel clearly demonstrated the environmental benefits of reduced emissions and underscored the need for responsible tourism.”

“In my opinion, despite some positive steps, the industry has largely lost sight of these lessons,” Neugarten adds. “Yes, airlines are investing in cleaner airplanes and more efficient technologies, but meaningful progress is still a long way off. The push for recovery and profit seems to be overshadowing the urgent need for more substantial environmental initiatives and a renewed commitment to sustainable practices.”

Positive outcomes from the pandemic

Sasha Andrews, director of industry sales, North America, Exodus Adventure Travels:

“One of the positive developments continuing to shape the travel industry is the growing commitment to sustainability and community-focused initiatives,” says Andrews. “At Exodus Adventure Travels, our Thriving Nature, Thriving People plan is a prime example. This program is dedicated to protecting and restoring nature while ensuring that the communities in our travel destinations benefit directly. By investing in conservation efforts, supporting local economies, and promoting responsible tourism, we’re helping to create a future where travel has a positive and lasting impact.”

Maija de Rijk-Uys, Managing Director, Go2Africa:

“The pandemic served as a turning point for travel, reinforcing the importance of intentional, sustainable, and transformative experiences,” says de Rijk-Uys.

Julian Kheel, Founder, Points Path:

“While the pandemic wreaked havoc on travel, two long-term silver linings that emerged are automation and flexible ticketing,” suggests Kheel.

“In an effort to maintain social distancing during the pandemic and reduce their reliance on labor, airlines and hotels poured resources into automating tasks such as check-in and boarding by using biometrics,” Kheel explained. “They’ve also provided more and better options for travelers to accomplish tasks on their own without the need of an agent, which means changing and canceling itineraries, or tracking checked bags, can now be done by customers via the web or mobile apps.”

The uncertainty of travel during the pandemic also forced airlines to remove change fees on most of their fares in order to survive.

“Travelers can now use that flexibility to better adjust their travel plans on the fly, switching to a more convenient flight or a cheaper itinerary at will without having to pay extra for the privilege,” says Kheel.

Jesse Neugarten, CEO, Dollar Flight Club:

“One of the most promising areas, in my view, is the focus on greening the industry,” says Neugarten. “Airlines and airports are investing in cleaner, more fuel-efficient airplanes and upgrading facilities to meet higher environmental standards. With state-of-the-art terminal designs, energy-efficient ground operations, and ambitious carbon offset programs, we’re setting new benchmarks for sustainability. These initiatives are paving the way for a future where travel is not only more convenient and enjoyable but also kinder to our planet.”

Jessica Blotter, Co-Founder, Kind Traveler:

“The pandemic accelerated the adoption of sustainable travel practices—moving beyond ‘do no harm’ to actively leaving destinations better than we found them,” says Blotter. “We’ve seen a surge in initiatives that prioritize community well-being, conservation, and purposeful travel experiences. Travelers are increasingly choosing brands that align with these values, proving that this shift isn’t just a trend but a necessary evolution for the industry.”