Typically, during an economic downturn, travel is the first shoe to drop as people put off vacations to prioritize spending on everyday necessities
Aug 20, 2024
CEOs of major U.S. hotel and travel companies are sounding the alarm about consumers’ declining financial health and waning interest in travel. These concerns have gained prominence, especially after last month’s unexpectedly weak jobs report, which pushed the U.S. unemployment rate to its highest level since the fall of 2021 and raised fears of a possible recession.
Key takeaways
- The lack of completed travel bookings doesn’t mean Americans aren’t planning to travel. Despite the economic challenges, demand for travel remains strong;
- According to the Conference Board’s Consumer Confidence Survey, a higher percentage of Americans said they plan to take a vacation within the next six months in June than at the same time last year;
- U.S. hotel occupancy rates for the week ending August 10 were higher than the same week last year, based on data from the CoStar Group, which tracks more than 82,000 hotel locations nationwide.
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