Despite Cooling Economy, Travel Industry Continues its Recovery
Travel spending continues to exceed 2019 spending levels
Travel spending exceeded 2019 spending levels for the fourth consecutive month in July, and modest growth is expected to continue as inflation drops and the labor market remains strong, according to U.S. Travel Association research.
Inflation and a cooling economy are still concerns for the travel industry, which is still in a state of recovery after two years of pandemic-related decline. Elevated prices are eating away at consumers’ spending power, although data indicates U.S. consumers are still spending on travel services.
But with the summer travel season wrapping up, the outlook for the last quarter of 2022 is murky. Business travel still lags 2019 levels for Monday through Wednesday with demand down 13 percent at luxury hotel properties and down 9 percent at upscale and upper-midscale hotels.
International travel to the U.S. picked up this summer but was still down about 35 percent in July from pre-pandemic levels. U.S. travel from European and Latin American markets were down just 22 percent in July while those from Asia were still down by 62 percent. According to U.S. Travel, inbound travel is expected to slow down in the fall and recovery to pre-pandemic levels could take until 2025.
This article was provided to OSAP by ASAE's Power of Associations and Inroads.