A new New York Times report uses summer travel as a barometer of the widening gap between the economic haves and have-nots in the U.S. economy
Jul 4, 2024
The travel industry is enjoying another busy summer as Americans hit the roads and airports, taking advantage of slightly cheaper flights and gas. However, the outlook for vacations in 2024 is mixed, reflecting the broader divide in the American consumer experience this year.
Key takeaways
- Wealthier consumers, crucial to the travel industry, feel optimistic this year due to a strong stock market and rising home values. Despite inflation, they have more budget flexibility, opting for generic brands or Walmart over Whole Foods;
- Poorer families struggle more with high prices despite a strong job market and rising wages, especially for low-income workers. Signs of economic strain are emerging among lower-income Americans;
- The income gap between consumers has been widening, especially evident in summer travel. Surveys show wealthier households are more optimistic about traveling, boosting full-service hotels, while budget hotel chains expect a decline.
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