Skip to content

Search

Latest Stories

USTA: Summer travel resilient amid economic pressure, poor experiences

The association urges Congress for support to enhance safety, efficiency and technology

USTA: Summer travel resilient amid economic pressure, poor experiences

AIR TRAVEL DEMAND is projected to exceed pre-pandemic levels, reaching unprecedented heights this summer, according to U.S. Travel Association. Nonetheless, inflation, higher interest rates, and disappointing air travel experiences are already impacting travelers negatively, the association said.

USTA said more than a quarter of Americans, 26 percent, intend to increase their spending on leisure travel in the next three months, a significant rise from 19 percent in the first quarter.


“Despite challenges such as a banking crisis, rising interest rates, and higher travel prices, Americans persist in their spending on travel and making trip reservations, at least for the time being,” USTA said.

During the recent Memorial Day holiday, the USTA cited a report by the Travel Security Administration  stating that nearly 10 million Americans passed through airport security checkpoints. This figure reflects an 11 percent increase compared to 2022 and approximately 300,000 more than the corresponding holiday weekend in 2019, aligning with American Automobile Association’s forecasts.

As of early April, over 53 percent of Americans and 81 percent of leisure travelers have upcoming travel plans within the next six months, USTA report said. “Expedia reported a 25 percent increase in flight searches for June through August compared to last year, with top domestic destinations including New York City, Los Angeles, Seattle, Orlando, and Las Vegas.”

Inflationary impacts

USTA said despite the robust demand for summer vacations and the upcoming six months, inflation and higher interest rates are beginning to impact spending patterns. “April's data indicates a decline in various travel indicators, such as hotel demand, air passenger traffic, and travel spending.”

PwC's recent analysis also suggests that leisure hotel demand will decline in the latter part of 2023 and throughout 2024, primarily due to a sluggish economy. “However, they anticipate that the ongoing recovery in business demand will help offset a significant portion of this decline,” the report added.

With persistent high interest rates, consumers may find it increasingly challenging to make significant purchases and rely on credit cards, especially as the economy weakens, USTA added.

“Furthermore, nearly 29 percent of travelers intend to cut costs by opting for more affordable accommodations or destinations, closely followed by 28 percent who plan to participate in less expensive activities,” the report said.

Due to increased travel by a broader range of individuals, not just those who traveled extensively during the pandemic, Deloitte found that while trip frequency has risen, the duration and expenditure of many Americans' primary summer vacations have decreased compared to 2022.

This summer, 38 percent of travelers anticipate their longest trip to last a week or more, a decline from 68 percent in 2022, USTA further added.

Prepare for the busy season

According to USTA, airlines, airports, and TSA are gearing up for the busy travel season, yet the current air travel system is ill-equipped to handle the immense demand.

Airlines for America (A4A) expects airlines will transport over 250 million passengers from June 1 to August 31, a 1 percent increase from 2019.

“However, flight capacity is expected to decrease by approximately 11 percent due to operational constraints, such as aircraft delays and air traffic controller shortages,” USTA said.

Airlines are ramping up hiring and raising wages to remain competitive. However, major carriers are cutting back on summer services due to concerns about air traffic control staffing, which is currently at around 80 percent nationwide.

The disappointing air travel experience is already impacting travelers negatively, the report added.

USTA said 42 percent of Americans have flown for leisure in the past year, and of those, 35 percent experienced flight delays or cancellations. “Additionally, less than one-third (32 percent) of recent air travelers express high satisfaction with their air travel experience.”

More than half of Americans, 52 percent, are willing to increase their leisure travel in the next six months if the travel experience becomes less troublesome, an increase compared to 29 percent in the first quarter.

“Our air system is struggling to meet the current demand, which could result in a sub-optimal travel experience. Considering the expenses involved, a negative travel experience could further reduce demand,” USTA said. “U.S. Travel is working with Congress for funding support in this year's FAA reauthorization legislation. The aim is to enhance safety and efficiency by addressing staffing shortages, improving air traffic control, and investing in technology upgrades.”

In May, Motel 6 and Studio 6 released a study that found that 67 percent of Americans with travel plans this year think that the best trips are spontaneous and decided on a whim.

More for you

Global Hotel Rates to Stay Stable in 2026

Report: Global hotel rates steady despite uncertainty

Summary:

  • Global hotel rates are expected to remain stable through 2026, according to AMEX GBT.
  • New York is a key business travel and meetings destination.
  • India is likely to be a focus for travel programs during 2026 negotiations.

GLOBAL HOTEL RATES are expected to remain stable through 2026, as geopolitical tensions and potential U.S. tariffs limit demand and constrain price increases, according to American Express Global Business Travel. New York remains a popular destination for business travel and meetings.

AMEX GBT’s Hotel Monitor 2026, an annual forecast of global hotel rates in business travel destinations, identified India as a key market, with hotel rates and occupancy set to rise.

Keep ReadingShow less
Trump reviewing 55 million us visas
Getty Images

Trump reviewing 55 million visas

Summary:

  • The Trump administration says it is reviewing more than 55 million visa holders.
  • Reviews cover a wide range of visas for law enforcement and overstay violations.
  • The administration also suspended worker visas for foreign commercial truck drivers.

THE TRUMP ADMINISTRATION is reviewing more than 55 million people who hold valid U.S. visas for potential violations. It is expanding a policy of “continuous vetting” that could result in revocation and deportation.

Keep ReadingShow less
Peachtree Funds Rio Las Vegas Renovations | $176M CPACE Loan
Photo credit: Hyatt Hotels Corp.

Peachtree originates retroactive CPACE loan for Rio Vegas

Summary:

  • Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
  • The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
  • The company promotes retroactive CPACE funding for commercial real estate development.

PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.

Keep ReadingShow less
Spark Acquires Home2 Suites Wayne, New Jersey
Photo Credit: Hunter Hotels

Spark acquires Wayne, N.J., Home2 Suites

Summary:

  • Spark acquired the 120-key Home2 Suites by Hilton Wayne in Wayne, New Jersey.
  • Hunter Hotel Advisors facilitated the transaction with DC Hospitality Group affiliates.
  • The 2020-built hotel is near William Paterson University and less than 20 miles from Manhattan.

SPARK GHC RECENTLY acquired the 120-key Home2 Suites by Hilton Wayne in Wayne, New Jersey, from affiliates of DC Hospitality Group. Hunter Hotel Advisors facilitated the deal for an undisclosed amount.

Keep ReadingShow less
Global hotel construction pipeline reaches record 15,871 projects in Q2 2025, with U.S. and Dallas leading growth
Photo Credit: iStock

Report: Global pipeline hits 15,871 projects

Summary:

  • Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
  • The U.S. leads with 6,280 projects; Dallas tops cities with 199.
  • Nearly 2,900 hotels are expected to open worldwide by the end of 2025.

THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.

Keep ReadingShow less