U.S. tourism spending is still about 10% above pre-pandemic (2019) levels, suggesting a slowdown, not a collapse
Apr 2, 2025
U.S. tourism spending is starting to soften after two strong years, with new data from Bank of America showing declines in lodging, tourism, and airline spending compared to 2024. While the overall economy remains stable, this drop may indicate a cautionary shift in consumer behavior rather than a full stop.
Key takeaways
- Tourism spending down: As of March 22, 2025, lodging and tourism-related spending is 2.5% lower than last year; airline spending is down 6%.
- Timing effects: Later Easter (April 20) may have delayed some spring travel, skewing early-year data.
- Airfare prices lower: A drop in airfare costs (down 4% YoY in February) may partly explain lower airline spending.
- Income disparity: Lower-income households are cutting back the most, correlating with weaker after-tax wage growth.
- Regional declines: States like New York, Nevada, and Texas saw fewer long-distance visitors in early 2025 vs. 2024.
- International travel holds up: In-person overseas spending by Americans was up 2.6% YoY in January and February.
- Policy impact concerns: Skift Research warns that Trump’s policy shifts – especially tariffs and immigration issues – could chill inbound tourism and risk cutting U.S. travel growth by half.
- Biggest threat: Recession: A potential recession triggered by tariff wars could significantly impact both domestic and international travel demand.
Get the full story at Skift (subscription required)
