Eli5: ~5 years ago travel was cheaper and “affordable. Now it’s staying stably insanely priced. How?

I have traveled a lot over past 15 years.

Before COVID, hotels and airlines had to offer “good prices” to attract customers & sales.

Now, everyone’s situation is worse and we all have less purchasing power (such as food prices & rent is up significantly worldwide thus less holiday money)

Yet, now airplane prices and hotels are significantly more. (+tours, activities)

Thankfully I’m well off but even for me it’s painful, tight, and tough to swallow. Makes me think how others are managing the prices, but logic screams that demand should be significantly less due to these prices (econ 101) and the market should adjust but prices aren’t dropping to reflect this.

Of course, I understand airlines can cut supply by reducing flights, but the hotel supply is fixed.

TLDR: where is all this money and demand coming from to support the new standard inflated travel costs?? while 5 years ago it was significantly cheaper likely being due to business needing fair prices to get business.

Submitted March 15, 2023 at 03:53AM by Maleficent-Number-10 https://ift.tt/B68hNu3