Economic uncertainty has resulted in a slowdown.
Travel had been booming since the pandemic, driven by trends such as “revenge travel.” Well, that’s all over now. Americans are taking a wait-and-see approach amid economic uncertainty. Reports and experts suggest that Americans are scaling back travel and holding out for deals before finalizing their summer plans.
This shift is notable because, after the pandemic, demand surged and bookings for flights, hotels, rental cars, and activities often happened months in advance. Now, airlines and hotels are seeing softer demand. Cirium, an aviation analysis firm, shared flight booking data with CNN that showed weaker demand for summer months, both for U.S.-to-Europe and return routes.
Hilton CEO Christopher Nassetta said demand has softened this year as travelers take a wait-and-see approach. The hotel group expects flat revenue per room this quarter compared to last year. Marriott also confirmed demand is less robust than before, though revenue per room is increasing. “We’re not getting that crazy pricing power we got in the early days of the recovery,” CEO Anthony Capuano said. Hyatt noted that bookings drop off a month out, but typically recover during the month itself.
Airlines have also revised their outlook this year and, faced with slowing demand, have cut flights. Ongoing tariff disputes have further complicated matters for airlines. American Airlines reported that travelers are unwilling to pay higher fares due to tariffs, and Alaska Airlines echoed that bookings are coming in at lower fares. In late May, Southwest CEO Robert Jordan said that demand was stable but lower than expected. “It’s very clear that consumers are waiting to make decisions, including for the summer.”
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In short, Americans are holding out for the best deals before booking and are spending more consciously—behavior not seen during the “revenge travel” period after the pandemic. That strategy may pay off this year. Foreign arrivals to the U.S. have decreased, creating availability in destinations that are typically booked up. “Florida, you have the Gulf Coast, where you can get some pretty decent pricing on very popular family-friendly destinations that are usually just horrifically expensive for summer vacations,” Tiffany Funk, co-founder of Point.me, told CNN. Even cruise lines and theme parks are offering last-minute deals, including during high season.
Travel certainly isn’t disappearing altogether. Although there are negative trends, the downturn isn’t likely to be extreme. Americans are still planning trips—they may not spend as much or travel as far. According to Deloitte’s summer travel survey, 5% more Americans plan to travel this year compared to last year, but are budgeting to spend less. The survey also found a noticeable change in plans from March to April: flights (domestic and international) decreased while road trips increased.
Related: Is It Time for Americans to Rediscover Domestic Travel?
Busiest Summer Days
United Airlines is predicting 3 million more passengers this summer compared to last year, with about 50 million travelers from July to August. American Airlines expects to fly 5% more flights than last summer. As always, some days will be particularly busy at airports.
For those flying American Airlines, July 6 is expected to be the busiest day with 6,800 scheduled flights. Expedia predicts high traffic on June 19, June 27, August 5, and August 26. Travelers should pack their patience, arrive early, and remember that Real ID requirements are now in effect as of May.
