Key Takeaways
- Airlines are having a slow start to 2025. The lodging and tourism sectors may be underperforming, too.
- A new report from Bank of America suggests that poor winter weather conditions, a late Easter, and lack of consumer confidence are contributing to weak travel in early 2025.
- As a result, the report says that while spending is soft, it hasn’t dropped to an alarming level to warrant a “red” rating.
Airlines have already warned of a slow start to the year. That dynamic may be hitting other travel categories, too.
Spending is also softer in the lodging and tourism categories, according to Bank of America data released Monday. Spending on lodging is about 2.5% lower than 2024 levels at this time, according to the data, which examines credit and debit card expenditures; Spending on tourism-related activities, such as motor home and RV rentals, sport clubs, tourist attractions and exhibits, amusement parks, aquariums and zoos, is down by similar margins.
The data follows reports from a range of airlines, which earlier this year lowered their projections for the first quarter. Virgin Atlantic’s CFO earlier today also reported said he’d seen “some signals” of slowing US demand.
Poor weather conditions and a late Easter holiday might be contributing to the slower travel year so far, Bank of America’s report said. This winter has brought several weather disruptions across the country that BofA says may have held spending back; Easter Sunday, meanwhile, falls on April 20 this year, meaning spring break and other spring travel plans may have been pushed back.
Total in-person Bank of America credit and debit card spending overseas was actually up 2.6% in January and February 2025 compared to the same period last year, suggesting that some people are still taking trips abroad. American consumers make up about two-thirds of all U.S. tourism demand, Bank of America said.
The bank has given the U.S. domestic travel labor market a rating of “yellow,” suggesting that while spending appears soft, it’s not at the point where a “red” is warranted.
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