Tourism Economics recently shared the latest macroeconomic outlook and forecast for travel through 2024 in a webinar with U.S. Travel Association. Highlights include:
U.S. domestic leisure: Trips have fully recovered to 2019 levels, though growth has decelerated due to tighter credit conditions and the restarting of student loan payments.
Air travel: In 2023, TSA air passenger volume increased 13% year-on-year, reaching 102% of 2019 levels and pacing 10% ahead of pre-pandemic levels during the first few weeks of January.
International inbound: Pre-pandemic levels are not expected to return until 2025 as the strong dollar and visa wait times continue to pose challenges, but 2023 ended with international visitation at 84% of 2019 levels.
- The U.S. is experiencing a highly unusual travel trade surplus with outbound travel outpacing inbound travel.
- However, inbound travel is gaining momentum, with Latin American travelers to the U.S. leading the way at 100% recovered to 2019 levels. Asia is on pace to recover most slowly with a full recovery not likely until 2025.
Sentiment: Travelers still feel generally optimistic about their financial circumstances—especially in comparison to the average American adult—and remain financially committed to travel (Future Partners).
- That said, a recent Longwoods International study reports 29% of travelers say financial concerns will greatly impact their decision to travel within the next six months—emphasizing the importance of value perception especially among lower-income earners.
Occupancy and average daily rate data for Coachella Valley vacation rentals is available at MyGreaterPS.com.
