THE GROWTH OF the U.S. travel market continues to slow, edging up 3 percent in July over the same time last year, according to the U.S. Travel Association’s most recent Travel Trends Index. In May the USTA index rose 3.4 percent year-over-year.
The slowdown in growth was seen in domestic and international travel between June and July, and USTA expects the trend to continue for the next six months. That means that, while both sectors will continue seeing growth, USTA’s Leading Travel Index predicts it will be at a slower rate than the previous six months.
“While international inbound travel is growing, it continues to underperform the earlier years of the current economic expansion,” said USTA Vice President for Research David Huether.
The LTI projects that international travel will grow at a rate of 1.6 percent through January. That will not be fast enough for the U.S. to regain its share of the global travel market, a share that peaked at 13.6 percent in 2015, according to USTA.
Individual and business spending, along with high consumer confidence, is expected to continue to lift domestic above international travel. “Domestic business travel has been particularly strong, though rising labor costs have the potential to inhibit business investment and diminish consumer confidence,” according to USTA.